The Federal Government has commenced payment of a N32,000 pension increment to over 832,000 retirees under the Defined Benefit Scheme (DBS), effective from the September 2025 payroll cycle. This payment is part of a broader reform agenda aimed at improving the welfare of senior citizens.
Key Details of the Pension Increment:
– Fixed Payment: A flat rate of N32,000 will be paid to eligible pensioners.
– Percentage Increases: Additional percentage increases of 10.66% and 12.95% will be applied to pension payments.
– Eligible Pensioners: The payment will benefit about 832,000 pensioners under the DBS, including retirees from defunct public institutions, privatised agencies, and treasury-funded parastatals.
Implementation and Funding:
– Emergency Funding: The payment was made possible through the partial release of N820.188 billion from the N845 billion emergency funding approval granted by the Federal Government.
– PTAD’s Role: The Pension Transitional Arrangement Directorate (PTAD) will continue to collaborate with relevant authorities to ensure the release of outstanding funds and fulfilment of future pension obligations.
Additional Benefits:
– Health Insurance Coverage: The reforms also include coverage under the National Health Insurance Scheme, ensuring access to essential healthcare services and reducing out-of-pocket medical expenses for retirees.
– Pension Harmonisation: The pension harmonisation policy aims to streamline pension payments and eliminate disparities among retirees.
