President Bola Tinubu has ended years of pension disparities among retirees under the Federal Defined Benefit Scheme (DBS) with the implementation of a long-awaited Pension Harmonisation policy.

The policy ensures pensioners of the same rank, grade level and years of service receive equitable benefits, regardless of when they retired.

The Pension Transitional Arrangement Directorate (PTAD) announced that the harmonisation took effect from May 2026, following the president’s approval of the policy in August 2025 under his administration’s Renewed Hope Agenda.

The development is expected to bring relief to thousands of retirees whose pensions had previously been calculated using different salary structures based on their dates of retirement, resulting in significant disparities among pensioners with similar career profiles.

Announcing the breakthrough, PTAD described the harmonisation as a landmark intervention that addresses “long-standing structural disparities within the DBS pension administration” while reinforcing the Federal Government’s commitment to fairness, social justice and the welfare of retirees.

Contained in a statement signed by PTAD Head, Corporate Communications, Olugbenga Ajayi, the Executive Secretary of the Directorate, Tolulope Odunaiya, said the implementation marks a major turning point in the administration of pensions under the Federal Defined Benefit Scheme.

She said: “This intervention represents a significant step toward ensuring a more equitable structure and restoring confidence in the administration of the Defined Benefit Pension Scheme.”

She noted that the reform reflects President Tinubu’s commitment to addressing historical injustices affecting pensioners and ensuring that retired public servants receive benefits that adequately recognise their years of service.

Odunaiya stated that the initiative demonstrates President Bola Ahmed Tinubu’s steadfast commitment to DBS Pensioners’ welfare, as well as its resolve to identify structural inequities and implement corrective measures that duly recognise and honour the contributions of DBS retirees.

Prior to the harmonisation, pension benefits were calculated based on the salary structure in force when individual pensioners retired from service, a system that created wide disparities among retirees of similar status.

Under the new arrangement, however, pensions will be computed using the last salary structure applicable at the cut-off date for the Defined Benefit Scheme.

PTAD explained that the new formula ensures that pensioners of similar ranks, grade levels and years of service receive equitable benefits regardless of when they retired.

The Directorate said the reform specifically targets categories of retirees whose pensions had been calculated using salary structures that predated the final approved salary regime.

Beneficiaries include Pure Federal Pensioners whose entire pension obligations are borne by the Federal Government; State and Federal Share Pensioners under the Parastatals Pension Department (PaPD); pensioners under the Defunct and Transferred Agencies Pension Department (DTAPD); and retirees under the Tertiary Education and Health Pension Department (TEHPD) who began their careers in Federal Government service before transferring to state government institutions.

The implementation follows President Tinubu’s approval of the harmonisation proposal for inclusion in PTAD’s 2026 pension budget, a move many pension stakeholders believe will significantly improve pension equity across the Defined Benefit Scheme.

PTAD said the reform aligns with the broader objectives of the Renewed Hope Agenda, particularly in promoting social protection and improving the welfare of senior citizens who devoted their productive years to public service. (TRIBUNE)

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