The Pension Transitional Arrangement Directorate (PTAD) has begun implementing new pension increments for retirees under the Defined Benefit Scheme (DBS), following the partial release of N20.188 billion by the Federal Government.
The adjustment, which includes a flat rate of N32,000 and percentage increases of 10.66% and 12.95%, will reflect in the September 2025 payroll cycle.
In a statement on Tuesday, PTAD said the move followed President Bola Tinubu’s approval of an emergency budgetary allocation to support revised pension rates. “The Directorate is delighted to announce the commencement of the implementation of the N32,000, 10.66%, and 12.95% pension increment for eligible pensioners under the management of PTAD,” the statement read.
The funds were drawn from the N45 billion emergency allocation earlier approved by the Federal Government, with the initial tranche released by the Ministry of Finance.
President Tinubu’s approval of the pension increment is part of broader reforms aimed at improving the welfare of senior citizens. In August, he endorsed measures including the immediate implementation of new pension rates and a harmonisation policy to be incorporated into the 2026 budget.
Olugbenga Ajayi, Head of Corporate Communications at PTAD, said the development “clearly reaffirms the Federal Government’s dedication to safeguarding the welfare and entitlements of DBS pensioners in line with the Renewed Hope Agenda.”
Among the reforms is the rollout of health insurance coverage for all DBS pensioners, designed to ensure access to essential healthcare services and reduce out-of-pocket expenses.
The harmonisation policy, once fully integrated into the 2026 budget, is expected to streamline pension payments and eliminate disparities among retirees. PTAD noted that these measures are aimed at promoting equity, financial security, and dignity for pensioners who served the nation under the DBS framework.
With the September payroll reflecting the increments, thousands of retirees across the country will now begin to see tangible improvements in their monthly entitlements.
