Finance Minister reiterates commitment to clear pension arrears

The Minister of Finance, Zainab Ahmed is committed to ensuring that all pension backlogs are cleared and is working with Pension Transitional Arrangement Directorate (PTAD) and relevant government agencies to make sure that backlog of outstanding pension arrears are cleared, PTAD said in a statement yesterday.

It also noted that the Federal Government has regularly made monthly pension payments to all retirees under the Defined Benefit Scheme (DBS) on PTAD payroll.

According to the statement, “The attention of Pension Transitional Arrangement Directorate (PTAD) has been drawn to calls by the Nigeria Union of Pensioners (NUP) and the Federal Universities Pensioners Association (FUPA) over the non-payment of the balance of the 12 and 36 months arrears respectively of the 33% pension increase to pensioners.”

“For the record,” it added, “the backlog of the 33% pension arrears has been owed since 2010 as a fall out of the upward review of the minimum wage to N18, 000.00. Though the increment had been approved, it was not implemented immediately thus creating accumulated arrears of 42 months.”

“PTAD commenced payment of the 33% pension payment increase in October 2014 and ensured that all arrears for the year 2014 were paid in December 2014.

In 2016, the backlog of the 33% pension arrears for the Customs, Immigration and Prisons Pension Department was fully paid. In the same year, 12 months pension arrears were paid to pensioners under Civil Service, Police, Parastatals Pension Departments.

In November 2017, the Federal Government through PTAD, further paid 6 months arrears across board to pensioners under Civil Service, Police and Parastatals Pension Departments.

Recall that in August 24, 2018, the outstanding 33% pension arrears for the Police Pension Department (PPD) were cleared.

The summary of arrears from all the pension departments is as follows:  Civil Service Pension Department (CSPD) out of 42 months arrears, 30 months have been cleared remaining outstanding of 12 months; Customs, Immigration and Prisons Pension Department (CIPPD) all backlogs (42 months) have been cleared; Police Pension Department (PPD) 42 months arrears cleared; Parastatals Pension Department (PaPD) out of 54 months backlogs, 18 months have been paid leaving 36 months outstanding. The outstanding, according PTAD “varies for different agencies.”