For years, pensioners of the Federal Mortgage Finance Limited (FMFL) and others alike grappled with the uncertainty of pension payments, a situation that caused distress and, for many, hardship. Delays, administrative confusion and a lack of clarity marred their transition into retirement. For the FMFL pensioners, the solution to this long-standing problem arrived with a directive of the Federal Government to the Pension Transitional Arrangement Directorate (PTAD) to take over the administration of their pensions. This decision has brought hope to this group of pensioners, many of whom now celebrate the hope for financial security. For these senior citizens, this is not just a bureaucratic shift; it is a lifeline that will restore their dignity and ensure that the fruits of their labour are honoured. CHRISTIAN APPOLOS writes.
The directive of the Federal Government to the Pension Transitional Arrangement Directorate (PTAD) to take over pension administration for the pension of pensioners of the Federal Mortgage Finance Limited (FMFL) underscores the importance of PTAD as a critical component of Nigeria’s Defined Benefit Scheme (DBS).
PTAD has long been recognised for its diligent administration of pension schemes, ensuring that pensioners are treated with dignity and that their payments are timely. This move that hands over the pension administration of this group of pensioners not only reflects the government’s commitment to pensioners but also reaffirms the role PTAD plays in the nation’s pension management landscape.
Pensioners’ testimonies
For pensioners like Peter Opara who retired after decades of service, their inclusion under PTAD’s care is nothing short of a miracle. “I thank God, the Federal Government and PTAD that this verification exercise is finally a reality,” Opara said. “Many of us died waiting for this moment. We have heard about how PTAD pensioners receive their pensions promptly every month and now that we have been handed over to the agency, we are very grateful.”
Opara’s gratitude is echoed by many of his fellow retirees. The joy of finally being able to look forward to prompt, regular payments is life-changing for many pensioners, who spent years in uncertainty. “This verification exercise today gives me hope and I feel so happy,” Opara added. He, like many others, had heard about PTAD’s track record of reliable pension administration and is optimistic about the future.
Similarly, Innocent Oguejiofo, who also retired from the Federal Mortgage Finance Limited, described the experience as a “reactivation of our lifeline.” Oguejiofo explained that for years, retirees like him waited for PTAD to take over their pension management and now that the day had arrived, it feels like a long-awaited dream has come true.
“We heard rumors that the government wanted to scrap PTAD and that news frightened us,” Oguejiofo said. “My prayer to Mr President is to keep this agency for us. We don’t want this joy that we have to be short-lived.”
Mrs Henrietta Obasiani, from Enugu State, said: “I feel revitalised undergoing the verification exercise. We didn’t believe it would ever come to pass. I am grateful that this dream is a reality. We have heard from other pensioners how PTAD ensures prompt payment of pension and I can’t wait to enjoy the experience. I pray that PTAD will continue on this path it has taken to serve us the pensioners.
Federal Government’s commitment to pensioners’ welfare
The approval for this group of pensioners to be added to PTAD’s care earlier came during the administration of former President Muhammadu Buhari and with the nod of President Bola Tinubu’ administration, the exercise became a reality.
According to Executive Secretary, PTAD, Dr Chioma Ejikeme, President Tinubu is empathetic about the welfare of the senior citizens and demonstrates it through his actions. For instance, his consistency in ensuring prompt release of funds for payment of pensions monthly is a statement of his administration’s dedication to improving the lives of senior citizens. Following that is a landmark decision – the prompt approval of a pension increment.
“For the very first time in the history of pension increments in Nigeria, five years on the dot, without pensioners asking for it, without pensioners protesting, he approved the pension increment.
“We have already paid arrears of eight months this August and the new pension increment will now reflect on the payroll.
“This decision reflects President Tinubu’s understanding of the struggles pensioners face and his desire to alleviate their burden. From September 2024, they will begin receiving their pensions with the new increment applied,” Dr Ejikeme noted.
This approach has garnered widespread praise from pensioners across the country, many of whom had long awaited such reforms.
PTAD, an efficient pension administrator
The Pension Transitional Arrangement Directorate (PTAD) is tasked with overseeing the administration of pensions for retirees under the Defined Benefit Scheme (DBS), a role it has performed with distinction. The agency’s mandate goes beyond simply ensuring accurate pension payroll; it focuses on ensuring the welfare of retirees by treating them with dignity, respect and care. PTAD recognises that pensioners, having dedicated their lives to serving the nation, deserve a system that respects their contributions and ensures their financial wellbeing.
This nod of President Tinubu to extend PTAD’s duties to include Federal Mortgage Bank and Federal Mortgage Finance retirees is a testament to PTAD’s credibility. For this new group of pensioners, the takeover marks a fresh chapter in their lives, one where they can finally enjoy the benefits of timely and accurate pension payments.
Previously, many of these pensioners faced delays that led to financial insecurity. With PTAD’s proven track record, there is now hope that these issues will become a thing of the past.
“We treat our pensioners with dignity and respect,” said Dr Ejikeme. “Anytime we have to summon them anywhere for any reason, we provide food, shelter and ensure they are comfortable. The culture at PTAD is to treat pensioners as senior citizens who have served this country with their youthful energy. Many of them were directors, heads of agencies and held significant roles, shaping and implementing government policies. Just because they are now pensioners doesn’t mean they should be treated any less.”
The ‘I Am Alive’ platform: Technology that eases pensioners’ lives
Among PTAD’s many innovations is the ‘I Am Alive’ platform, a web-based solution that has revolutionised how pensioners confirm their status. Previously, pensioners were required to travel to specific locations for verification, a process that was stressful, risky and expensive, particularly for the elderly people with limited mobility.
The ‘I Am Alive’ platform eliminates this burden entirely by allowing pensioners to verify their aliveness from the comfort of their homes.
This platform has been a game-changer for pensioners, especially for those who live in remote areas or face health challenges that make travelling difficult. The ‘I Am Alive’ initiative was created to leverage technology to make pension administration more efficient while reducing the risks and costs associated with traditional verification processes.
“Before the ‘I Am Alive’ platform, pensioners had to travel to specific locations to confirm they were alive, which involved risks like road accidents or illnesses. Now, with this technology, pensioners can confirm their aliveness from home, eliminating transportation costs, risks and unnecessary stress,” Dr Ejikeme said.
PTAD has been working with the ‘I Am Alive’ platform for about two years and the feedback has been overwhelmingly positive. Pensioners appreciate the convenience and security it provides.
Dr Ejikeme also emphasised that the platform not only benefits the pensioners but also helps the government by streamlining operations, reducing the cost of in-person verification and improving the accuracy of its pensioner database.
The goal is to ensure that the number of pensioners being paid matches the number of pensioners who are alive, a task made easier with the use of modern technology. “What PTAD is concerned about is making sure that the number of pensioners we have alive equals the names on the payroll. That way, at the end of every month, we pay only the eligible pensioners,” the Executive Secretary noted.
PTAD’s commitment to DBS pensioners
As PTAD continues to administer pensions for an increasing number of retirees, its commitment to providing a seamless experience for pensioners remains unshaken, according to its Executive Secretary.
The agency has made strides in building a comprehensive database of eligible pensioners and paying out monthly pensions promptly. It has also worked to clear arrears inherited from previous mismanagement, demonstrating its commitment to transparency and accountability.
PTAD’s use of technology has played a pivotal role in transforming pension administration. With systems in place to reduce manual interference in pension computations, pensioners can rest assured that they will receive exactly what they are entitled to. This accuracy has been achieved through the implementation of a pension computation software, which eliminates the errors that often arise from manual processes.
“We want to ensure that exactly what a pensioner deserves and is entitled to is what they get. This is why we rely on computation software to calculate pensions, ensuring there are no discrepancies.
“In addition to its technological advancements, PTAD has also established zonal offices across the country, bringing pension administration closer to the doorsteps of pensioners. By doing so, we aim to eliminate the need for pensioners to travel long distances to access PTAD services, thereby reducing risks and costs,” said Ejikeme.
The future of pension administration in Nigeria
As PTAD’s responsibility expands, the future of DBS pension administration in Nigeria looks promising. With more pensioners being added to its payroll and many more awaiting to be added, the agency is on track to becoming a model of efficiency in pension management across Africa. Its reliance on technology and its focus on treating pensioners with respect and dignity ensures that it will continue to play a vital role in the lives of retirees for years to come.
The directive to include this group of retirees under PTAD’s care is a further reflection of this administration’s commitment to improving the lives of pensioners. For the retirees themselves, the move marks a new chapter – one of hope, security and financial stability.
In a country where pension management has historically been fraught with challenges, PTAD stands out as a beacon of efficiency and compassion. Its dedication to providing timely, accurate payments and its innovative use of technology make it an essential institution in Nigeria’s pension landscape.
This is because pensioners under its payroll across the country celebrate this new era and they do so with a deep sense of gratitude.
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