Pension: FG Commences Payment of N32,000 Increase to Retirees

The Pension Transitional Arrangement Directorate, PTAD, has announced the start of implementation of the new increments for retirees under the Defined Benefit Scheme (DBS), saying the adjustments will be reflected in the September 2025 payroll cycle.

In a statement signed by Management and posted on its X handle, PTAD said the increase package includes a fixed N32,000 payment alongside percentage increases of 10.66% and 12.95% for eligible categories, which will benefit about 832,000 persons under its management.

Recall that in August, PTAD announced President Bola Tinubu’s approval of a series of measures, including new welfare benefits for retirees under DBS.

The approval followed a formal request by PTAD’s Executive Secretary, Tolulope Odunaiya, seeking an emergency budgetary allocation to implement reforms and welfare packages for the scheme’s beneficiaries.

The measures include a N32,000 increment, percentage increases for those from defunct and privatised agencies, harmonisation of benefits for all DBS retirees, enrolment into the National Health Insurance Scheme, and the settlement of long-standing unfunded liabilities.

According to Tuesday’s statement, the partial release of N820.188 billion by the Federal Ministry of Finance from the emergency funding has made it possible for beneficiaries to begin receiving the enhanced payments immediately.

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Pension Transitional Arrangement Directorate Statement

The statement read, “Further to the President’s approval of the emergency budgetary allocation for the new increment rates under DBS that was earlier published by Pension Transitional Arrangement Directorate on Friday, 8th August, 2025, the Directorate is delighted to announce the commencement of implementation of the 832,000, 10.66% and 12.95% adjustments for eligible retirees under its management in the September 2025 payroll cycle.

“This achievement has been made possible through the partial release of 820.188 billion by the Federal Ministry of Finance, from the initial 845 billion emergency funding approval granted by the Federal Government.

“This milestone clearly reaffirms the Federal Government’s dedication to safeguarding the welfare and entitlements of DBS beneficiaries in line with the Renewed Hope Agenda.”

The Directorate thanked President Bola Ahmed Tinubu for approving the emergency allocation.

It also acknowledged the role of the Minister of Finance and Coordinating Minister of the Economy, Mr Wale Edun; the Minister of State for Finance, Dr Doris Uzoka-Anite; the Accountant-General of the Federation; and key presidential aides and parliamentary committees for their “timely interventions” and support.

The statement also expressed appreciation to organised groups, including the Nigeria Union of Pensioners and the Federal Parastatals and Private Sector Pensioners Association of Nigeria, for their cooperation during negotiations and planning.

“We further assure all our DBS retirees and stakeholders that the Directorate will continue to collaborate with the relevant authorities towards release of the outstanding approved funds and subsequent fulfilment of all future obligations relating to the increments and the landmark reforms,” the statement added.

The DBS covers those who retired before the introduction of the Contributory Pension Scheme in 2004, including workers from defunct public institutions, privatised agencies, and treasury-funded parastatals.

Over the years, many have faced irregular payments, delayed harmonisation, and inadequate healthcare access—challenges the new reforms are expected to address.