Pension Funds are Safe Under PTAD, Says DG

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The Executive Secretary/Director General of the Pensions Transitional Arrangement Directorate (PTAD), Mrs. Nellie Mayshak has assured pensioners that pension funds of the Defined Benefits Scheme (DBS) are safe under the agency. The payment process, she said has been automated for the convenience of pensioners, reports Bennett Oghifo
The Pensions Transitional Arrangement Directorate (PTAD) is building automated processes, facilitated by innovative technology, for effective, fraud-free management of pensions under the DBS.
The Executive Secretary/Director General of PTAD), Mrs. Nellie Mayshak stated this at the BBC Media Action Town Hall Meeting held recently at Protea Hotels Asokoro, Abuja.
According to her, “We very much like people to know that the Pension management for the defined benefit scheme is on track to become one of the best managed systems in Nigeria.”
She said, “First of all, payment to pensioners is now very regular and the payments are made without interception, intermediaries, direct from Central Bank (CBN) to the bank accounts of pensioners.
“Pension funds are safe. What we spend and what is left is in the government coffers and doesn’t come out at all.
“We are using technology to make sure that there is transparency and good customer service for pensioners.”
On the activities of pension fraudsters, the Director General advised pensioners to disregard anyone who asks for money under the guise of helping them process their pension.
“We are warning pensioners not to give money to any fraudster who calls them and says ‘give me money so that we can prepare your pension’.
“You do not need to pay anybody anything.”
The DG also spoke about the ongoing nationwide verification of pensioners and other measures put in place by PTAD to help ease the process of accessing pensions and other entitlement.
“Services for pensioners have improved greatly, the access points, internet, websites, social media and toll free numbers, state offices.
“We have created opportunities for pensioners to suffer less, to travel less for their pensions.
“They don’t need to continue to suffer. They deserve it (their pensions). They have worked very hard for this country.”
Mayshak added that “pension is going to be on autopilot” as soon as PTAD completes the nationwide verification of pensioners under the DBS.
The Town Hall Meeting is a weekly radio magazine programme, covering governance issues, and it is an initiative of the BBC Media Action.
Recently, two pensioners, who received their pension arrears and other benefits after several years of being off the pensions payroll visited PTAD to thank Mrs. Mayshak.
Mr. Anthony Mmekini, a 70-year-old retired police officer and a 90-year-old retired Headmistress, Elder Mrs. Ako Aku, represented by her daughter, visited PTAD head office in Maitama, Abuja after they were paid.
The duo, who had been taken off the payroll before the establishment of PTAD, had approached the agency with their complaints.
Mmekini, who worked as a General Duty Police officer, said he had not been paid any pensions since he retired on 1st of April 2006.
“I started work as a General Duty Police officer on the 1st of April 1971 and retired on the 1st of April 2006,” the septuagenarian said when he visited PTAD in mid-January.
“But I was not paid any pension or gratuity until PTAD took over and I brought my issue up.”
He said his problem was subsequently resolved by PTAD staff.
“They made a part payment of my entitlements in September 2015. I got the alert for the remaining balance on the 31st of December 2015.”
Mrs. Aku, who retired as Head Mistress of Army Children in Port Harcourt, said she was receiving pensions until it was stopped suddenly.
The 90-year-old did not receive pension for more than five years until PTAD resolved the problem and paid her accrued entitlements.
“I want to thank all of you at PTAD and I ask God to bless you for doing this,” she said. “He will bless the work of your hand.”
Mmekini and Aku are some of the pensioners whose complaints have been resolved in recent weeks.
PTAD was established to clean up the Defined Benefit Scheme (DBS), which had fallen into disrepute amidst allegations of misappropriation of funds, maladministration, corruption and fraud as well numerous pensioners’ complaints that bother on issues such as non-payment of monthly pension after retirement, short payment of pension and gratuity, removal of name on pension payment voucher, non-payment of harmonised pension arrears, irregular payment of federal pensions and non-receipt of pension after retirement, among other problems.
Mayshak, recently revealed that these issues would be a thing of the past as soon as the nationwide verification of pensioners was completed.

PTAD’s evolution…
The Pension Transitional Arrangement Directorate (PTAD), an agency of the Federal Government was established in August 2013 to oversee the management of pensions under the Defined Benefit Scheme (DBS) for pensioners not transiting to the contributory pension scheme in compliance with the provisions of the Pension Reform Act (PRA) of 2004, which recommended the establishment of an independent pension department for the Public Service of the Federation.
Existing as a directorate under the Federal Ministry of Finance, the establishment of PTAD is 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. It is regulated by The National Pension Commission (PenCom).
PTAD operates with five main departments; The Civil Service Pension Department (CSPD), The Police Pension Department (PPD), The Customs, Immigration and Prisons Pension Department (CIPPD), The Treasury Funded Parastatals Pension Department (PaPD) and The Pension Support Services Department (PSSD).
Before PTAD was established, pension administration in Nigeria had fallen into disrepute amidst allegations of misappropriation of funds, maladministration, corruption and fraud as well numerous pensioners’ complaints that bother on issues such as non-payment of monthly pension after retirement, short payment of pension and gratuity, removal of name on pension payment voucher, non-payment of harmonised pension arrears, irregular payment of federal pensions and non-receipt of pension after retirement, among other problems.
At the time, pension offices – the Civil Service Pensions; Police Pension Office; Custom, Immigration and Prisons Pension Office; and The Pension Board Of trustees of Federal Government Parastatals, were run independently without any strong management/regulatory oversight and there was a need to urgently consolidate them and their respective Boards of Trustees which were riddled with cases of misappropriation of funds, fraud running into billions of Naira, cases of corruption and general mismanagement which became a national embarrassment, with huge financial consequences.
The welfare of pensioners was relegated to the background even as the pension liability of the government continued to grow due to the despicable siphoning of funds by administrators, causing a deeply rooted lack of faith in the pension system.
PTAD was therefore established as a child of necessity and given the mandate of managing the DBS for pensioners who retired on or before June 2007, with the exclusion of Military Pension and Security Agencies Pension offices.

PTAD’s responsibilities…
PTAD’s Mandate and functions, as specified in the Pension Reform Act (PRA) 2014, section 42(1), is to smoothly transition the management of pensions under the DBS of the defunct Pensions offices.  PTAD is charged with the responsibility of carrying out the existing functions of the relevant pension boards or offices in the public service of the federation.
These functions include: making budgetary estimates for existing pensioners and the officers exempted from the Contributory Pension Scheme under section 5 (1) (b) of the Act; Preparation of the monthly payroll of pensioners to the office of the Accountant General of the Federation (OAGF) for direct payment from the budgetary allocation maintained with the Central Bank of Nigeria to Pensioners’ bank accounts; issuance of payment instructions to the Office of the Accountant-General of the Federation; maintaining a comprehensive database of pensioners in its jurisdiction; carrying out such other functions aimed at ensuring the welfare of pensioners; and rendering monthly returns to the Pension Commission on existing staff, pensioners, deceased pensioners and any other issue as may be required by the Commission from time to time.

Institutional frameworks and systems…
Following its establishment, PTAD began to put together the lacking institutional frameworks, processes and systems needed to run a sensitive operation such as pension payment. In a bid to correct observed anomalies as well as streamline the payment of pensions and gratuities to retired civil servants, PTAD commenced a nationwide verification of pensioners under the DBS towards “maintaining a comprehensive database of pensioners in its jurisdiction” as it is mandated in the Pension Reform Act (PRA) of 2004.
It is on record that PTAD did not inherit a credible pensioners’ database, despite the many verification exercises conducted by defund pension departments. There was therefore an urgent need to: establish a credible, authentic and digitalised database of pensioners under he Defined Benefit Scheme (DBS); eliminate duplicate payments and ghost pensioners; regularize anomalies such as over payments and under payments; update the records of the Next Of Kin (NOK).
The verification began with the Police, Customs, Immigration and Prison Pensioners, where 3,000 bogus names were identified and removed from the payroll. This has in effect saved the Federal Government about N100 Million monthly in fraudulent pension payments.
PTAD began the verification of Civil Service Pensioners in the North-West zone, comprising Jigawa, Kano, Kebbi, Sokoto, Katsina, Kaduna and Zamfara states, from the 2nd to the 14th of November, 2015, followed by pensioners in the South-East zone, comprising Enugu, Anambra, Imo, Abia and Ebonyi who were verified from the 30th of November to the 12th of December, 2015.
Apart from identifying ghost pensioners and stopping fraudulent payments, the verification exercise has facilitated the restoration of monthly pension payments to genuine pensioners previously removed from the payroll, including those who had never been paid any pension or gratuity, some for over 10 years after retirement.
One major reason for the successful conduct of the verification exercises is that the welfare of the pensioners was given due attention, unlike in previous verifications where some pensioners took ill, fainted or even died from standing in long queues, cold and hunger.
“We realised that previous verifications had caused pensioners undue hardships with people standing for days to be verified,” Mrs. Mayshak told journalists while monitoring the exercise.
“As elderly people, some of them got sick, some of them fainted, dehydration, cold. We did not want that to happen again. So we’ve taken our time to plan this verification carefully.”
Instead of asking the pensioners to all converge at Abuja, PTAD teams went to the various states, and even personal homes in some peculiar cases. Also, the verification centers were well equipped, with comfortable seating arrangement, medical team, wheelchairs, lunch and other ready-to-assist support staff.
According to Mayshak, what makes the current verification exercise being conducted even more special for pensioners is that data gathered is digitalized and saved, eliminating the need for future verifications for the same set of pensioners.
“They have been dragging you out every time for verification. They bring you out and do whatever they are doing. No records kept,” she said.
“But we are saying to you, this is the last time that we will bring you out because technology is there and we can do things better in this country.
At the close of 2015, several pensioners and their respective unions commended the Directorate over the conduct of the verification. On Tuesday 1st of December 2015, the Nigerian Union of Pensioners (Electricity Sector), gave an award of appreciation to the Director General/Executive Secretary of PTAD, Mrs. Nellie Mayshak, at its Quadrennial National Delegates Conference.
The database of Nigerian pensioners under the DBS is being systematically sanitized, even as the verification continues this year. It will continue until all pensioners and Next-of-Kin (NOKs) under the DBS are verified.
In its twenty-nine months of existence, PTAD has worked hard, leveraging on innovative technology, to achieve its aims by strategically restructuring and improving specific areas within the ambits of its mandate, introducing innovations in pension administration. These innovations have led to: regular and prompt monthly pension payments; we have payrolled and brought huge relief to pensioners who had never received a pension for upwards of 10 years.
PTAD has re-enrolled over 4,000 genuine pensioners who were unjustly removed from the payroll before the establishment of PTAD; conversely, PTAD has removed over 10,000 ghost pensioners from the payroll with a monthly savings of over N1Billion; PTAD has blocked the loop-holes in the pension system by deploying modern technology in pension computation and payment; we have reinstated the sanctity of pension funds. Pensions are electronically paid on the government’s payment platform (GIFMIS) with no room for manipulation. We have removed intermediaries including individuals, brokers and underwriters, (insurance companies) and commercial banks. We have achieved transparency, cost effectiveness and a seamless payment system; PTAD has removed fraud from the system. It is instructive to note that since November 2013 when the pension payrolls of the old pension offices were handed over to PTAD, we have not recorded a single case of fraud and have never failed to make the monthly payment.
Another important achievement is that PTAD has brought dignity, relief and hope to pensioners, for which they are extremely happy and thankful. There are thousands of pensioners that can testify to this effect.
The previous pension administrators made beggars out of pensioners and PTAD has reversed this ugly and dehumanising trend. Pensioners are smiling and happier than before the establishment of PTAD. The pages of newspapers used to be filled with woeful stories and pictures of pensioners queuing and suffering. According to one of our pensioners “The establishment of PTAD is the best thing that has happened to pensioners in Nigeria”. There are more testimonies like this one.
In December, PTAD opened four state offices in Lagos, Enugu, Benin and Kaduna, to make services more accessible to pensioners and decentralize operations. These state offices, the first in the master plan to have state offices in most states of the federation, were established to: bring our services closer to pensioners; reduce turnaround time of complaint resolution; eliminate the need for pensioners to travel far to lodge complaints and; provide easy access to relevant information. 
The Directorate is however not resting on its oars as it fulfils its mandate of “improving the welfare of pensioners” in Nigeria.
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