Pension Transitional Arrangement Directorate (PTAD) has assured that its implementation of the pension harmonisation for Defined Benefit Scheme (DBS) pensioners, which took effect in May 2026, will lift incomes for many retirees, just as it expressed fears that the programme may also raise federal government’s pension liabilities.

A statement by PTAD, signed by its

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Executive Secretary of PTAD, Tolulope Odunaiya, weekend, explained that the new scheme approved by President Bola Tinubu in August 2025 as part of the agency’s 2026 pension budget, corrects long-standing structural disparities in the old pension system by computing pensions using the last salary structure at the DBS cut-off date rather than the salary at each retiree’s individual retirement date.

According to the PTAD chief, the policy is ‘a significant step toward ensuring a more equitable structure and restoring confidence in the administration of the Defined Benefit Pension Scheme.’

PTAD said the harmonisation ensures pensioners of similar ranks, grades and years of service receive equitable benefits regardless of retirement date, thereby boosting incomes for eligible retirees.

The agency, however, acknowledged the fiscal impact of the reform, noting that aligning past pensions to the final approved salary structure will increase the government’s overall pension obligations.

The agency framed the additional cost as part of the federal government’s commitment to fairness, social justice and the welfare of retirees.

“This intervention represents a significant step toward ensuring a more equitable structure and restoring confidence in the administration of the Defined Benefit Pension Scheme,” Odunaiya said.

Prior to the implementation, pensions were computed for pensioners based on the salary structure applicable at the time of their individual retirement from service.

With the pension harmonisation, the government said pensions are computed using the last salary structure at the cut-off date for the DBS pension which ensures that DBS pensioners of similar ranks, grade levels, and years of service receive equitable pension benefits regardless of their retirement date.

The eligibility for pension harmonisation applies to pensioners who are purely federal pensioners, whose entire DBS pension obligation falls under federal government’s purview, state and federal share pensioners under parastatals pension department, defunct and transferred agencies pension department, and tertiary education and health pension department who initially served with the federal fovernment and subsequently transferred to state government MDAs.

It is also meant for pensioners on earlier salary structures whose pensions were hitherto calculated on salary structures predating the final approved Salary Structure.

The PTAD boss, therefore, reassured pensioners of the commitment to prioritizing their welfare through continuous collaboration with relevant government agencies to enhance their overall well-being.