The Pension Transitional Arrangement Directorate (PTAD) has announced the implementation of pension harmonisation for eligible pensioners under the Federal Defined Benefit Scheme (DBS), effective from May 2026, in a move aimed at promoting equity, fairness and improved welfare for retirees.
In a statement signed by PTAD’s Head of Corporate Communications, Olugbenga Ajayi, the Directorate said the harmonisation policy was approved by President Bola Ahmed Tinubu in August 2025 and subsequently incorporated into PTAD’s 2026 pension budget in line with the administration’s Renewed Hope Agenda.
PTAD described the development as a landmark achievement that addresses long-standing structural disparities within the Defined Benefit Scheme and reinforces the Federal Government’s commitment to social justice and the welfare of pensioners.
According to the Executive Secretary of PTAD, Tolulope Odunaiya, the intervention represents a significant step toward ensuring a more equitable pension structure and restoring confidence in the administration of the Defined Benefit Pension Scheme.
She noted that the harmonisation demonstrates the Tinubu administration’s commitment to the welfare of DBS pensioners and its determination to identify and correct structural inequities while recognising the contributions of retired public servants.
Before the implementation of the harmonisation policy, pensions were calculated based on the salary structure applicable at the time each pensioner retired from service. However, under the new arrangement, pensions will now be computed using the last salary structure at the cut-off date for the Defined Benefit Scheme.
The new computation method is expected to ensure that pensioners of similar ranks, grade levels and years of service receive equitable pension benefits regardless of when they retired.
PTAD explained that those eligible for the harmonisation include Pure Federal Pensioners whose entire pension obligations are borne by the Federal Government. Also covered are State and Federal Share Pensioners under the Parastatals Pension Department (PaPD), Defunct and Transferred Agencies Pension Department (DTAPD), and Tertiary Education and Health Pension Department (TEHPD) who initially served with the Federal Government before transferring to state government ministries, departments and agencies.
The policy also applied to pensioners whose benefits were previously calculated using salary structures that predated the final approved salary structure.
Odunaiya reaffirmed PTAD’s commitment to prioritising the welfare of pensioners through continuous collaboration with relevant government agencies to improve their well-being.
She said the Directorate would continue to pursue policies and initiatives that align with the Renewed Hope Agenda of President Tinubu and the administration’s commitment to fairness, social justice and improved welfare for retirees.
The implementation of pension harmonisation is expected to bring relief to thousands of DBS pensioners across the country and marks a significant milestone in the Federal Government’s efforts to strengthen pension administration and ensure greater equity among retirees.
