PTAD concludes payment of N220bn arrears to pensioners

The Pension Transitional Arrangement Directorate (PTAD) said it would soon conclude payment of N220billion outstanding liabilities to pensioners.

The Daily Times also gathered that the arrears accrued from 33 per cent pension increase, unpaid gratuities and death benefits to deceased pensioners to next of kins, among others.

The Executive Secretary, Mrs. Sharon Ikeazor, has since assumption of office made it part of the reforms being initiated have been the clearance of pension arrears, prompt payment of liabilities to deserving pensioners and verification of pensioners to weed out ghost pensioners as part of her reforms of PTAD in line with global best practices.

Ghost pensioners have cost the Directorate tens of billions which according to Mrs Ikeazor would be nipped on bud once the entire verifications were concluded.

The payment according to the information obtained from PTAD management was aimed at settling pensioners under the Defined Benefits Scheme (DBS).

The pensioners were drawn from the Civil Service Pension Department, Police Pension Department and Parastatals Pension Department. The outstanding liabilities which Mrs Ikeazor sanctioned for prompt payment came from the 33 per cent pension increase, and stood at N55.854 billion.

Other outstanding liabilities comprises verified pensioners verified who were short paid, omitted from payroll for a period or completely omitted, unpaid gratuities, death benefits to deceased pensioners, unpaid harmonization. The group includes state pensioners with Federal share, who were not captured on the payroll but were entitled to pension to the tune of N118.76 billion.

The breakdown on categories of pensioners receiving payment Level 17 (L17) owed 18 months arrears of N9.28 billion. Others were pensioners below L17 from the Civil Service Pension Department and the defunct Jos, Katsina and Osogbo Rolling Mills pensioners who were allocated N2.14 billion amounting to 42 months arrears.

Lastly, 66 months arrears of N8.81 billion were allocated to state pensioners with Federal share. The Police Pension Department got their 39 month’s arrears of N5.75 billion and the Parastatals Pension Department got N28.47 billion amounting to 30 months arrears of pensioners on the payroll.

Those whose payments of arrears have been concluded are Customs, Immigration and Prisons which were 33 per cent to 42 months. Also, the Directorate paid 24 months arrears to Level 17 and below from the Civil Service Pension Department, three months to pensioners on payroll of the Police Pension Department and 12 months to those on payroll of Parastatals Pension Department.

Speaking, Mrs Ikeazor noted that, “PTAD has categorised the unfunded liabilities into two, namely 33 per cent pension arrears and other outstanding liabilities. The 1999 Constitution of the Federal Republic of Nigeria Section 173 (3) states that, ‘pensions shall be reviewed every 5 years or together with any Federal Civil Service reviews, whichever comes earlier’.

According to her, “In July 2010, there was a salary review of serving officers by 53.37 per cent. That of pensioners was increased by 33 per cent in line with the constitution. However, the implementation of the 33 per cent increment did not take effect till October 2014 when funds were released.

“That was preceded by the release of a circular from the National Salaries, Income and Wages Commission, referenced SWC/04/S.542/26 and dated 26th September 2014. By December 2014, more money was released to pay the arrears from January to September 2014, completing the whole of 2014, leaving an outstanding of 42 months i.e July 2010 to December 2013.”