The Pension Transitional Arrangement Directorate (PTAD) has disbursed ₦18.96 billion to settle outstanding Back-End Computation (BEC) arrears for 3,958 eligible pensioners of the defunct Power Holding Company of Nigeria (PHCN) under the Defined Benefit Pension Scheme (DBS).
This significant payment aims to clear a substantial portion of the long-standing financial obligations owed to the former electricity sector employees, providing crucial relief to thousands of retirees across the country.
Dr. Chioma Ejikeme, the Executive Secretary of PTAD, confirmed the payment, emphasising the Directorate’s unwavering commitment to ensuring all verified federal pensioners receive their entitlements promptly. The disbursement reflects PTAD’s ongoing efforts to reconcile and settle the legacy pension liabilities of various government parastatals.
The arrears arise from a recalculation of pension benefits for PHCN retirees, necessitated by historical adjustments in salary structures and service records following the unbundling and privatisation of the national power utility. The Defined Benefit Scheme, which PTAD manages, covers pensioners who retired before the Contributory Pension Scheme (CPS) became mandatory.
PTAD was established in 2013 to manage the DBS, which includes pensioners from parastatals like PHCN, NITEL, Nigerian Railway Corporation, and others. The agency’s mandate involves digitising pension records, verifying beneficiaries, and ensuring regular and accurate pension payments, as well as clearing outstanding arrears.
Addressing Legacy Pension Liabilities
The clearance of PHCN pension arrears has been a complex and protracted issue, largely due to incomplete records and the intricate process of verifying beneficiaries after the company’s privatisation in 2013. The N18.96 billion payment underscores the federal government’s commitment, through PTAD, to address these historical burdens and improve the welfare of its senior citizens.
Dr. Ejikeme reiterated PTAD’s dedication to its mandate, stating that the agency would continue to work diligently to ensure all legitimate pensioners are paid their dues. She noted that these payments are part of a broader strategy to systematically resolve all outstanding pension liabilities for federal retirees under the DBS.
The disbursement provides much-needed financial relief to the 3,958 beneficiaries, many of whom have waited years for these payments. It also reinforces public confidence in the pension administration system, demonstrating that long-neglected obligations can eventually be met. The agency has previously undertaken similar exercises for other defunct government entities, signalling a comprehensive approach to pension management.
Pensioners are encouraged to verify their status and entitlements through official PTAD channels. The Directorate has established robust mechanisms for complaints and enquiries, aiming to ensure transparency and accountability in the administration of pension benefits.
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