Ajayi disclosed that Pension Transitional Arrangement Directorate’s, PTAD, investigation unveiled a payroll issue in which 7,091 pensioners in the sector were receiving insufficient payments, underscoring the need for corrective action.
With the finalization of the payment of ₦1,023,756,227.45, which represents 39% of the accrued pension arrears owed them from August 2015 to September 2023, federal pensioners of the power and transport sectors of the Parastatals Pension Department (PaPD) can now breathe a sigh of relief.
According to PTAD’s statement, the payment was made by calculating the retirees’ monthly pensions using their career information, pay scale, and any applicable pension increases.
According to the Directorate, the arrears were found during PTAD‘s back-end computation exercise, which revealed that 7,091 pensioners in the Power and Transport Sector were receiving inadequate pay based on the payroll that PTAD had inherited.
He also mentioned that the arrears were determined through a PTAD-conducted back-end calculation.
Ajayi disclosed that PTAD’s investigation unveiled a payroll issue in which 7,091 pensioners in the sector were receiving insufficient payments, underscoring the need for corrective action.
He added that PTAD’s Executive Secretary, Dr Chioma Ejikeme had noted that the back-end computation was mandatory to ensure that each pensioner earned an accurate pension for fairness, equity and justice.
The Pension Transitional Arrangement Directorate was set up in August 2013, in alignment with the Pension Reform Act of 2004, which was superseded by the PRA 2014.
Prior to the enactment of the PRA, government pensions were managed by separate offices, all part of the entirely treasury-funded Defined Benefits Scheme.
Section 42 (1) of the PRA 2014 empowered PTAD to take charge of the administration of several former pension offices. This encompassed the Civil Service Pension Office under the Head of the Civil Service of the Federation, the Police Pension Office, the Customs, Immigration, and Prisons Pension Office, in addition to the pensions of more than two hundred Treasury Funded Parastatals.
These pensioners were those who had served the Federal Government and retired on or before June 30, 2007, without transitioning to the Contributory Pension Scheme.
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