The Federal Government has commenced the implementation of pension harmonisation for eligible pensioners under the Defined Benefit Scheme (DBS) administered by the Pension Transitional Arrangement Directorate (PTAD), with effect from May 2026.
This followed President Bola Tinubu’s approval of the proposed pension harmonisation policy in August 2025, which was subsequently incorporated into PTAD’s 2026 pension budget.
In a statement, PTAD said the move addresses long-standing structural imbalances within the old pension system and reflects the Federal Government’s commitment to fairness, social justice and improved welfare for retirees.
PTAD Executive Secretary, Tolulope Odunaiya, described the development as a major milestone towards creating a more equitable pension structure and restoring confidence in the administration of the Defined Benefit Pension Scheme.
According to her, the harmonisation policy demonstrates government’s commitment to pensioners’ welfare by correcting existing inequalities and properly recognising the contributions of retired public servants.
Before the implementation, pension payments were calculated based on the salary structures in place at the time pensioners retired from service.
However, under the new arrangement, pensions will now be calculated using the last salary structure applicable at the cut-off date for the DBS pension scheme. This means pensioners with similar ranks, grade levels and years of service are expected to receive more equitable benefits regardless of when they retired.
PTAD explained that the policy covers pensioners whose pension obligations fall entirely under the Federal Government, including state and federal share pensioners under the parastatals pension department, defunct and transferred agencies pension department, as well as retirees in tertiary education and health institutions who initially served under the Federal Government before transferring to state institutions.
The harmonisation also applies to pensioners whose benefits were previously calculated using outdated salary structures.
Odunaiya assured pensioners that PTAD would continue working with relevant government agencies to strengthen pension administration and improve the welfare of retirees nationwide.
