The Pension Transitional Arrangement Directorate (PTAD) has paid ₦13.87 billion in pension increment arrears to 18,822 retirees under the Defined Benefit Scheme (DBS).

The payment settled outstanding entitlements arising from pension increases approved for former workers of the defunct Power Holding Company of Nigeria (PHCN) and five other agencies.

The payments cover arrears arising from 13.8 per cent and 20.55 per cent pension increments, with the PHCN beneficiaries receiving arrears spanning 65 months. In contrast, eligible pensioners from five other defunct agencies received payments covering 22 months.

A breakdown of the disbursement showed that ₦9.42 billion was paid to 7,391 PHCN pensioners as arrears arising from the 13.8 per cent increment, covering June 1, 2021, to October 31, 2026.

Another ₦4.46 billion was disbursed to 11,431 pensioners from five defunct agencies to settle arrears arising from the 20.55 per cent increment, covering January 1, 2025, to October 31, 2026.

The beneficiaries comprise eligible pensioners of the Peoples Bank of Nigeria, Assurance Bank, NICON Insurance, Nigerian Reinsurance Corporation and NITEL/MTEL.

In a statement by Head, Corporate Communication, PTAD, Olugbenga Ajayi, PTAD explained that both pension increments were approved by the National Salaries, Incomes and Wages Commission (NSIWC) in a circular dated January 14, 2026.

The disbursement comes amid continuing efforts to address outstanding pension obligations to retirees under the DBS, a pension arrangement in which retirement benefits are determined by established rules, including an employee’s qualifying service and salary history.

Unlike the Contributory Pension Scheme, under which employees and employers contribute to individual Retirement Savings Accounts, the DBS covers eligible public-sector retirees whose pensions are administered under the pre-existing arrangement.

The latest payment is significant for beneficiaries who have waited for accumulated arrears arising from approved pension increases. Such payments can help retirees meet essential expenses, particularly as rising living costs continue to put pressure on household budgets.

PTAD said the disbursement demonstrated the Federal Government’s commitment to senior citizens’ welfare and its efforts to correct longstanding pension anomalies under President Bola Tinubu’s Renewed Hope Agenda.

The Directorate reiterated its commitment to efficient pension administration, timely payment of entitlements, and improved welfare for DBS pensioners.