Finance

PTAD says retired staff of defunct PHCN not entitled to 33% pension increase


Workers who retired as staff of the defunct Power Holding Company of Nigeria (PHCN) are not entitled to 33% pension increase.

This was disclosed in a statement by the Pension Transitional Arrangement Directorate (PTAD), on Thursday, while responding to allegations of collusion with some “powerful individuals” to deprive the pensioners of the 33% pension increment.

It stated that the reason for the non-increase is because the PHCN pensioners were already on a special salary structure before the pension review for pensioners.

What they are saying

In a statement titled, “Clarification on the Applicability of 33% Pension Increase to the Ex-PHCN Retirees”, it said its attention has been drawn to a growing agitation by some group of PHCN Pensioners known as concerned PHCN Pensioners.

  • The statement read in part, “They are alleging PTAD has colluded with some “powerful individuals” to deprive them of the 33% pension increment as approved by the Federal Government in 2010.
  • “For the records, the President, Muhammadu Buhari is very committed to pensioners welfare and has consistently demonstrated this by approving the payment of outstanding pension arrears and regular payment of monthly pensions.
  • It added that the National Salaries, Incomes & Wages Commission, the Federal Government agency responsible for policy statements on emoluments including pensions had directed via a letter of approval Ref: SWC/S/04/S.542/26 of 26th September 2014 saying that the retired staff of the defunct Power Holding Company of Nigeria (PHCN) are not entitled to the pension increase of 33%.
  • “This is because PHCN pensioners were already on a special salary structure before the Pension review for Pensioners who while in service were on one of the Harmonized Salary Structures of the Federal Public Service ” it stated.
  • The PTAD also revealed that PHCN pensioners took the Federal Government to the National Industrial Court (NIC) Abuja on this issue, and after several engagements, President Muhammadu Buhari, approved the implementation of 9.7% increase in the pensions of ex-PHCN retirees under the Defined Benefit Scheme (DBS).
  • This approval was used as an out-of-court settlement in order to put an end to the suit at NIC, Abuja.
  • “Following the approval of the President, via approval letter Ref:(SWC/S/04/S.557/III/546) of 7th May, 2021, the 9.7% increment was implemented with effect from 1st June, 2016 and the arrears paid in December 2021 to all eligible Ex-PHCN Retirees,” it stated.

In case you missed it

Nairametrics reported earlier that Nigeria’s pension fund assets increased by N453.8 billion in the first quarter of 2022 to stand at N13.88 trillion as of the end of March 2022, representing the highest level on record, as the industry’s assets under management increased by 3.38% in the review period from N13.4 billion as of December 2021.





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