Pension: Board inherits N213.7bn liabilities

Lack of adequate resources to fund inherited liabilities amounting to N213.7 billion is posing a challenge to the Pension Transitional Arrangement Directorate (PTAD). A report obtained by New Telegraph revealed that arrears of 33 per cent increase, over 10,000 inherited cases of death benefits and benefits of over 13,000 state pensioners with federal shares, are among the factors that have posed some challenges for the pension agency. Others are funding sustainability for monthly pension and pensioner verification exercise in the face of dwindling oil revenues and trapped funds with underwriters.

According to the study, strong resistance to change and subtle campaign for return to the old discredited order and absence of comprehensive database from the old pension offices, have hampered some pension payments. Also, the non-rendition of database returns and difficulties in taking possession of some inherited assets have also made it difficult for the agency to carry out its statutory duties smoothly. According to the Director, Civil Service Pension Department, PTAD, Mr. Godson Ukpevo, the directorate, in spite of the challenges, is clearly transforming public sector pension administration.

Ukpevo, who described the agency as a child of necessity, said that the feat was being achieved with the collective input and strong support of all stakeholders. “Though the dip in government revenues poses a great challenge to our ability to pay pensions as at when due, we are hopeful that the incoming government will be committed to pension payment. “On our part, we remain focused on strengthening the institutional structures of PTAD, building a sustainable operation, stronger stakeholder collaboration and enforcement of zero tolerance for fraud,” he said. The director noted that PTAD rose from the ashes of the Defined Benefits Scheme (DBS) otherwise called the ‘old pension scheme’ after the management of the old scheme had fallen into disrepute with allegations of misappropriation of pension funds, maltreatment of pensioners and general malfeasance pervading the air.

He added that the public outcry led to widely publicised public hearings and criminal proceedings against suspected pension thieves, stressing that against this background, PTAD was established in August 2013 as an independent agency to consolidate and manage pensions under the Defined Benefits Scheme (DBS) for pensioners who did not transit into the contributory scheme introduced in 2004. This was in compliance with the provisions of section 30 sub-section (2) (a) of the Pension Reform Act of 2004 and as restated in section 42(1) of the amended act of 2014 Ukpevo emphasised that currently, all pensioner data fields (biometric, documentation, photo imaging, complaints) were captured and could be centrally accessed, including an automated benefit re-computation for all pensioners