Under the Defined Benefit Scheme (DBS), the Nigeria Union of Pensioners (NUP) has expressed gratitude to President Bola Ahmed Tinubu for his commitment to improving the Welfare of pensioners across the country. Through its National President, Comrade Godwin Abumisi, the union commended Tinubu for implementing notable measures aimed at alleviating the financial challenges faced by retirees. The president’s commitment has been demonstrated through approving a 20 percent payment increase for DBS pensioners and introducing a ₦32,000 minimum payment. The union emphasised that these policies show the administration’s dedication to ensuring the rights and support of retirees.
The 20 percent increment, backdated to January 2024, has already been disbursed to many DBS retirees. Additionally, the ₦32,000 minimum payment approved in July 2024 has been paid to many retirees. Comrade Abumisi noted that this marks the first time pensioners have received an increase without public protests, describing it as an achievement under the current administration. The union applauded this proactive approach, emphasising how vital the increase is in addressing retirees’ economic hardships amid the current Inflation and rising living costs.
Important of the increase and minimum payment implementation.
And for their ₦32,000 minimum payment, it aims to ensure a baseline income for all DBS pensioners, helping to secure a dignified Retirement for many elderly citizens who often struggle with limited financial support. The union appreciated the Pension Transitional Arrangement Directorate (PTAD) and its new Executive Secretary, Tolulope Odunaiya, for their critical role in facilitating the prompt disbursement of the approved payment increases. The union acknowledged Odunaiya’s diligence in implementing President Tinubu’s policies and commended her assurance that the increment would be fully disbursed before the end of December 2024.
However, the union raised concerns over unresolved payment discrepancies, which have affected some retirees’ timely receipt of the entitlements. Despite the positive strides, the NUP revealed that not all elders had received their entitled increments, with the 20 percent increase arrears still unpaid to many beneficiaries. Furthermore, about 70 percent of pensioners are yet to receive the ₦32,000 minimum payment. Therefore, they called on PTAD to urgently address these payment inconsistencies and ensure that no elders are left out due to systemic errors or administrative lapses. The union stressed the need for a comprehensive review of records to identify and correct errors in the disbursement process.
Role of defined benefit schemes in retirement planning and income security.
A Defined Benefit Scheme (DBS) is an annuity plan that guarantees a fixed income for life after retirement based on an employee’s salary history, length of service, and age. This scheme offers retirees a predictable income stream, simplifying retirement planning and providing financial security. Unlike defined contribution plans, DBS benefits are not directly tied to Investment performance, making them a stable source of income for retirees. Although DBS plans offer guaranteed income, they are often more complex and costly to maintain than other retirement allowance schemes.
They are commonly found in the Public Sector and have become less prevalent due to the financial obligations they impose on employers. However, the NUP remains optimistic about the administration’s continued commitment to pensioners’ welfare despite the challenges. The union reaffirmed its support for President Tinubu’s policies, describing the reforms as a significant step toward enhancing the quality of life for retirees. They believe that with ongoing collaboration between PTAD, the government, and other stakeholders, the remaining issues will be addressed effectively, ensuring timely and complete disbursement of retirement benefits.
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So therefore, the union concluded its statement with a heartfelt message to President Tinubu, expressing gratitude for his dedication to retiree’s welfare and his policies’ positive impact. On the other hand, the NUP emphasised that the ongoing retirement payment reforms provide hope for a better future for all retirees in the country and urged the federal government to maintain its focus on ensuring every retiree receives their entitled benefits without further delays in the payment process.