PTAD clarifies new pension adjustment method
The Pension Transitional Arrangement Directorate adjusted how it calculates retirement benefits after the 2019 minimum wage increase. Executive Secretary Tolulope Odunaiya said the agency switched from pension bands to grade levels in August 2024 after receiving guidance from the National Salaries, Incomes and Wages Commission. The directorate originally used bands in May 2021 and paid two years of accumulated arrears from budget reserves.
The commission sent a letter on July 8, 2024, that instructed the agency to apply percentages based on grade levels rather than salary ranges. Some retirees received less money while others gained more under the revised system. The 20 percent and 28 percent increases for 2024 reflected the recalculated 2019 adjustments tied to specific employment grades.
Officials met with union representatives to explain the changes before implementing them in monthly payments. The agency exempted workers from defunct and privatized organizations unless they retired under approved salary structures. Odunaiya said the directorate follows government policies and prioritizes pensioner welfare under the 2014 Pension Reform Act.
