2020: Tasks ahead of PTAD executive secretary

Barely four months ago, President Muhammadu Buhari appointed Dr Chioma Nnenna Ejikeme as the new executive secretary of the Pension Transitional Arrangement Directorate (PTAD) following the appointment of Sharon Ikeazor as minister of state for the environment.

Subsequently, the appointment of Ejikeme is expected to build on the reforms which her predecessor had commenced.

Daily Times observes that however, there are some concerns by stakeholders which the agency under Ejikeme’s stewardship perhaps will have to look at to ensure a smooth running of the agency.

Task ahead

Experts believe that the major challenge bedevilling pensioners usually emanate from the Death Benefits Scheme (DBS) in Nigeria.

Also, they believe that delayed or non-payment of pension entitlements and misappropriation of existing pension funds also added to the headache of pensioners.

Similarly the plethora of verification of pensioners by Pension Transitional Arrangements Directorate (PTAD)(section 42 of PRA 2014) has become a source of concern to experts as it sometimes result in pensioners dying during verification exercises. 

As such industry players believe that if PTAD can adopt a more technology advanced pensioners’ biometric database that is suitable for future actuarial valuation, demographic and financial projections, it will aid in detecting more ghost workers

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Also, adopting a more tangible approach to pensioners’ biometric verification process that provides an avenue for self-verification by pensioners capable of automatically updating the pensioners’ database, having conducted an initial face-to-face verification in order to minimize the frequency of subsequent face-to-face verification exercise.

Similarly, experts believe that automation of pension/gratuity calculation and payment system to ensure that pension increases are implemented on a timely basis relative to increase in workers’ salaries and also allowing pensioners to receive their pensions/gratuities as at when due.

Subsequently, the Integrated Personnel and Payroll Information System (IPPIS) for the Federal public service must be replicated at the State and Local Government levels, which is said to be crucial in any pension verification exercise.

Consequently experts on different fora have advised PTAD to constitute a realistic pension stabilization fund (to be invested) with the primary aim to stabilize the pension/gratuity payment system which is always in arrears, which they believe will ensure that money is readily available to pay the arrears of pension liability. 

PTADs Achievements

Although there lie some challenges in the pension sector with regards to the functions and mandate of PTAD, however, the current efforts of the agency have so far being yielding some positives

For instance, PTAD through its verification exercise identified 15,600 names of pensioners without Bank Verification Number (BVN) and removed from the payroll, enabling them to save N300 million monthly which was used to settle other genuine pensioners.

Also, the directorate has successfully fast-tracked the payment of N1.58 billion to the Next of Kins (NOKs) in the Education and Health parastatals validated under the Parastatals Pension Validation Exercise (PPVE) carried out by the Pension Commission (PENCOM.

Similarly, the payroll clean-up and efficient administration which resulted in the reduction of liabilities by N10 billion and N5.7 billion, including the data the capture of excluded pensioners of 10 defunct privatized agencies.

Accordingly the verification exercise was critical to the successful delivery of its mandate; the automation of payment processes and the use of government-to-person electronic payments is a reform strategy that has recorded huge success for PTAD.

Consequently pensioners receive their payments directly into their bank accounts and are paid by the 20th day of every month without delay.

Ejikeme sets the ball rolling

In her resolve to build on some of the positive policies set by her predecessor, Dr. Ejikeme has promised to consolidate on the success recorded in the agency and ensure it fulfills the provisions of its core mandate.

During her handover ceremony, she had vowed to uphold the rights and welfare of the pensioners as well as the welfare of staff the directorate, even as she appeared for commitment and loyalty from the management and staff of PTAD.

Also recently, she had pledged during a courtesy visit of the management of Daily Times to her office in December, that every pensioner that falls within the bracket of PTAD mandate is verified and pay-rolled before the 1st quarter of 2020.

“We are currently clearing our database, to generate credible data, to ensure that people get what is due to them and as at when due.

The PTAD boss added that there are plans to ensure that pensioners that are unfit due to old age or ill-health are verified at home or hospitals with what she described as mobile verification.

“As a Medical Doctor, Chioma Ejikeme said apart from age, what kills pensioners most is an inability to access quality healthcare because of lack of funds. She, therefore, said the legacy she would very much like to leave behind in PTAD is a workable and efficient health insurance scheme for pensioners so that so that they can have easy access to Medicare,” she further stated.

Also the PTAD boss says the Directorate is considerate introducing health insurance scheme for pensioners to ensure their health care is taken seriously after retirement.

“We all know that the ageing population needs more of insurance for health to enable them get quality healthcare services.

“It is on the front burner, we are still at the talking stage, but I want pensioners to know that it is a project we want to make sure materialise and that is why I am committing myself by mentioning it” she affirmed.

The Pension Transitional Arrangements Directorate (PTAD) was established under Section 42 of the Pension Reforms Act (as amended in 2014) as part of the transitional arrangements for the public sector from the Defined Benefit Scheme.

PTAD took over the functions of the various Pension Departments of the Public Service and is responsible for payment to existing retirees of the federal government that retired up to June 2007 and thus exempted from the Contributory Pension Scheme.