PTAD: Defunct PHCN Retirees Not Entitled to 33% Pension Increment

James Emejo in Abuja

The Pension Transitional Arrangement Directorate (PTAD) yesterday clarified that retired staff of the defunct Power Holding Company of Nigeria (PHCN) are not entitled to the pension increment of 33 per cent by the federal government.

“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 harmonised salary structures of the federal public service,” the directorate said in a statement made available to THISDAY.

The clarification came against the backdrop of growing agitation by some group of PHCN pensioners known as concerned PHCN Pensioners, who alleged that PTAD had colluded with some “powerful individuals” to deprive them of the pension increment as approved by the federal government in 2010.

PTAD further claimed that the National Salaries, Incomes and Wages Commission, which is responsible for policy statement on emoluments including pensions had directed via a letter of approval Ref: SWC/S/04/S.542/26 of 26th September 2014, that the former PHCN workers are not entitled to the increment in question.

PTAD, however, assured that President Muhammadu Buhari remained committed to the welfare of pensioners and has consistently demonstrated this by approving the payment of outstanding pension arrears and regular payment of monthly pensions.

The statement read, “It should be noted that PHCN Pensioners took the federal government to the National Industrial Court (NIC) Abuja on this issue. After several engagements, President Buhari approved the implementation of 9.7 per cent 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 per cent increment was implemented with effect from 1st June, 2016 and the arrears paid in December 2021 to all eligible Ex-PHCN Retirees.

“It is therefore preposterous and uncalled for that this group wants to conveniently forget the amicable agreement reached by all parties and arm-twist the federal government to make claims on the 33 per cent pension increment.”