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.
The development follows the approval of the Pension Harmonisation policy by President Bola Ahmed Tinubu in August 2025 as part of the administration’s Renewed Hope Agenda.
The policy was subsequently incorporated into PTAD’s 2026 pension budget.
In a statement issued by the Head of Corporate Communications, Olugbenga Ajayi, PTAD described the harmonisation as a landmark achievement that addresses long standing structural disparities in the administration of the Defined Benefit Scheme and reinforces the Federal Government’s commitment to fairness, social justice, and the welfare of retirees.
Speaking on the initiative, PTAD Executive Secretary, Mrs. Tolulope Odunaiya, said the intervention marks a significant step toward creating a more equitable pension structure and restoring confidence in the administration of the Defined Benefit Pension Scheme.
“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 said.
Odunaiya added that the harmonisation demonstrates President Tinubu’s commitment to the welfare of DBS pensioners and his administration’s determination to address structural inequities affecting retirees.
Before the implementation of the harmonisation policy, pensions were calculated based on the salary structure in place at the time each pensioner retired from service. Under the new arrangement, pensions will be computed using the last approved salary structure at the cut-off date for the DBS pension.
According to PTAD, the new system will ensure that pensioners of similar ranks, grade levels and years of service receive equitable pension benefits regardless of their retirement dates.
The harmonisation applies to Pure Federal Pensioners whose pension obligations are fully borne by the Federal Government.
It also covers State and Federal Share Pensioners under the Parastatals Pension Department (PaPD), the Defunct and Transferred Agencies Pension Department (DTAPD), and the Tertiary Education and Health Pension Department (TEHPD) who initially served the Federal Government before transferring to state government ministries, departments and agencies.
In addition, pensioners whose benefits were previously calculated using salary structures that predated the final approved salary structure are eligible for the harmonisation.
The PTAD Executive Secretary reaffirmed the Directorate’s commitment to improving the welfare of pensioners through sustained collaboration with relevant government agencies, in line with the Renewed Hope Agenda of President Tinubu and the administration’s broader commitment to social justice and the well being of retirees.
