Why President Bola Tinubu, National Assembly Should Support Existence Of PTAD – Pensioners

Since February 26, 2024 when the Federal Government announced its plans to scrap some agencies, commissions and parastatals, to merge, subsume and relocate some of the agencies, commissions and parastatals in order to reduce the cost of governance, where Pension Transitional Arrangement Directorate (PTAD) was mentioned as one of the agencies to be scrapped, Nigerians including various Pensioners Unions and Associations in the Country such as Nigerian Union of Pensioners, Contributory Pension Scheme (NUPCPS),and Nigeria Union of Pensioners (NUP) have expressed their views through different channels condemning government’s plan to scrap PTAD.

They have called on the Federal Government and the National Assembly to tread with caution concerning the matter.

The most recent call came from  the Federal Parastatals and Private Sector Pensioners Association of Nigeria (FEPPPAN).

The Association is appealing to president Bola Ahmed Tinubu and the National Assembly to support the existence of the Pension Transitional Arrangement Directorate (PTAD).

The pensioners’ union in a memorandum it submitted to the House of Representatives’ Special Ad-Hoc Committee on Restructuring of Federal Parastatals, Commissions and Agencies emphasised PTAD’s pivotal role in sustaining the life and wellbeing of tens of thousands of DBS pensioners under its payroll.

The union also cited a white paper recommendation of the 2014 White Paper on the Presidential Committee on Restructuring and Rationalization of Federal Government Parastatals, Commissions, and Agencies, as regards to PTAD’S existence.

FEPPPAN also recalls the White Paper on the Presidential Committee on Restructuring and Rationalization of Federal Government Parastatals, Commissions and Agencies of 2014 under PENCOM that states: “that the Pension Transitional Arrangement Directorate be inaugurated with the provision of PRA 2004 in order to provide single platform for effective and efficient administration of the defined benefits pension scheme”, which was also endorsed in the Steve Oronsaye Report.

The establishment of PTAD marked a critical shift towards improved governance and fairness in pension management, addressing systemic challenges that plagued retirees previously. Its creation was a humane and respectful response to the plight of senior citizens who endured mismanagement of pension funds.” The FEPPPAN memorandum stated.

Furthermore, the union highlighted some achievements and impact of the agency, saying: “After over a decade of PTAD’s operations, significant milestones have been achieved.

“PTAD successfully implemented a comprehensive database of pensioners, eliminating previous gaps in record-keeping. Through rigorous verification processes, PTAD has eradicated fraudulent claims of pensions by non-existent beneficiaries.

“Measures implemented by PTAD have curbed fraudulent activities that marred the Defined Benefits Scheme, promoting financial accountability. Administrative bottlenecks in accessing pension services have been significantly reduced, with innovations like the “I am alive Confirmation” allowing pensioners to confirm their status conveniently every six months.”

Moreso, FEPPPAN passionately urges President Tinubu and the National Assembly to retain PTAD, stressing that its existence is vital for the well-being of pensioners under the Defined Benefits Scheme. The union also argues that PTAD’s operational framework aligns with the Oronsaye Report’s vision, in terms of ensuring effective and efficient pension administration.

Instead of scrapping or merging with any other Agency, we urge you to rather support PTAD by ensuring it continues its current culture of regular and punctual pension payments, a fundamental right of retirees. We strongly oppose any consideration of merging or scrapping PTAD because such actions would disrupt the lives of pensioners who depend on its services.”

FEPPPAN’s memorandum also underscores the critical role of PTAD in safeguarding the welfare of Federal Government pensioners. It appeals for policy continuity and governmental commitment to uphold the integrity of pension administration in Nigeria.

As the debate on restructuring Federal Agencies continues, FEPPPAN’s stance resonates as a steadfast advocacy for the rights and dignity of senior citizens who have faithfully served the nation.

Meanwhile, in an interview with our Correspondent, National Chairman of the Nigerian Union of Pensioners, Contributory Pension Scheme (NUPCPS), Comrade Sylvanus Nwaiwu, expressed concern over Federal Government’s Plan to scrap PTAD, describing it as “very unfortunate” even as he blamed some Nigerians who are instrumental to the matter for their narrow-mindedness and for allowing themselves to be used.

According to him, “The Pension Transitional Arrangement Directorate (PTAD) was established in August 2013 in compliance with the Pension Reform Act (PRA) of 2004, which was repealed and re-enacted in 2014, with the mission to provide exceptional, transparent and technology-driven, innovative and long-term pension services through a competent and dedicated workforce.

“PTAD came on board when the Defined Benefit Scheme (DBS) administration under the old pension offices was facing overwhelming challenges.”

He expressed regret why government should forget very easily the suffering that pensioners under DBS had to go through in the past before getting paid which led to the 2004 pension reform and the establishment of PTAD.

“I have even seen a pensioner under PTAD who is already celebrating the recommended scrapping of PTAD. To me, this is very unfortunate. The situation is even more pathetic where majority of the citizenry is easily brainwashed.

“Another cause of concern is that our political system is yet to imbibe the culture of continuity. Where continuity is key, we rather build upon existing structures than destroy them. There is also the factor of our being too forgetful. Have we forgotten the nightmares pensioners under the old pension scheme (DBS) had to go through to receive their pensions before the introduction of PTAD, how many of them died during the frequent deceitful verification exercises? Have we also forgotten the billions of naira that were embezzled by the former pension controllers and directors?

“A major challenge before us is that in Nigeria laws are easily made and easily changed not for the citizens but with some people in mind. Once, the instigators of reforms are no longer in position of power to enjoy the benefits, the reforms they earlier sponsored are quickly condemned and sooner than later expunged whether they are good or bad. However, I was happy when I heard the National Assembly call for caution and proper investigation before scrapping or merging of any of the agencies recommended by the executive arm of the government.

On the performance of PTAD, Comrade Nwaiwu said, “I am not under PTAD, I am under PenCom. There’s therefore little I can deliver on the performance of PTAD in terms of carrying out its statutory responsibility. I believe only PenCom as the apex supervisor of the Nigeria pension industry, can judge the performance of PTAD. However, being a member of the National Executive Council (NEC) of the Nigeria Union of Pension (NUP) that includes the DBS retirees and the Countributory pension retirees Sector, I can say from the feelers during our meetings that PTAD has steadily carried out its statutory responsibilities optimally.

In his contributions, NUPCPS Chairman, Lagos State Sector, Comrade Michael Omisande, highlighted why PTAD was established and why government decided to scrap it, just as he called on the federal government not to shy away from it’s responsibility of taking care of the retirees who had laboured to build the country.

According to him, PTAD is an Agency established by the Federal Government for prompt payment of pensioners under DBS and also for managing and directing the affairs of the DBS in order to make it efficient. But since the Federal Government decides to implement the Oransanye’s report, in order to reduce some Government Agencies, that is the reason why it is being scrapped in order to cut the cost for Government expenditure and duplication of Government agencies.

“The foundation of failure of the new Pension Scheme in Lagos State started when the Retirees accrued benefit since 2007 were not credited into their Retirement Savings Account (RSA) like others in Private Sector. The template used in calculating the bond is poor as it cannot put food on our tables.

“Government as a matter of facts cannot and should not deny or withdraw their responsibilities to the senior citizens who had laboured to build the state with their sweat and blood.

“All over the world, senior citizens are cherished, respected and cared for throughout their lifetime. That is the reason why such countries are moving forward. We are the birds that laid the golden eggs, we appeal to the Federal Government, to let us enjoy the dividend of democracy as we all know that without yesterday, there cannot be today,” Omisande stated

In the same vain, the Southwest chapter of the Nigeria Union of Pensioners (NUP) has  condemned Federal Government’s plan to unilaterally scrap PTAD without the approval of the National Assembly, and threatened legal action against the federal government.

The Union made its stance on the matter known in a communique released at the end of the meeting of state chairmen, secretaries and leaders of the union, held in Abeokuta, Ogun State.

The union insisted that scrapping of PTAD would amount to taking pensioners back to Egypt “where our pensions and gratuities will be at the whims and caprices of larcenous civil servants.”

According to the body, the Oronsaye report did not recommend the scrapping of PTAD and urged the federal government to allow PTAD to continue to exist as an agency that oversees pension issues of all pensioners.

The South West spokesman of the NUP, Dr. Olusegun Abatan, who addressed newsmen, warned that the scrapping would lead to the reinstitution of corruption, another round of harsh treatment and more untimely death of pensioners.

Abatan said PTAD had ensured seamless and prompt payment of pensions and gratuities, expressing the fear that scrapping it might spell doom for pensioners.

He urged President Bola Tinubu not to be misinformed by “rapacious civil servants”, insisting that PTAD is an act of law and “any step taken to unilaterally scrap it without the imprimatur of the National Assembly is a violation of the law.”

Abatan said, “The South West NUP may go to court if PTAD is unilaterally scrapped because it will amount to violation of the law of the land and to that effect null and void and of no effect.

“The South West decries scrapping of PTAD and taking pensioners back to Egypt where our pensions and gratuities will be at the whims and caprices of larcenous civil servants.

“We do not want to go back to the era where our members will be dying on queues or travelling from all over the federation to Abuja before our entitlements are paid.”

Some pensioners and pension industry watchers who spoke under anonymity with our Correspondent are asking on who’s interest is the scrapping of PTAD by FG, noting that if it is for the interest of the pensioners, the government should have consulted widely with the pensioners union and other stakeholders before taking it’s decision.

They appealed to President Bola Ahmed Tinubu and the National Assembly to follow the laid down legislation that established PTAD and for the interest of pensioners under the old Defined Benefits Scheme (DBS) not to scrap PTAD.