Beyond monthly stipends: Spotlight on welfare gaps in old pension scheme

As attention continues to focus on timely pension payments under the Defined Benefit Scheme (DBS), concerns are growing over welfare issues that extend beyond monthly stipends for thousands of retirees under the management of the Pension Transitional Arrangement Directorate (PTAD).

While the Federal Government has repeatedly assured pensioners of regular payment, stakeholders say access to healthcare, structured engagement fora and targeted welfare outreach remain critical but less discussed aspects of pension administration.

Many DBS retirees, particularly elderly civil servants and paramilitary pensioners, struggle with rising medical costs amid inflationary pressure. Industry analysts say pensions alone often fall short of covering basic health needs.

In response, PTAD Executive Secretary Tolulope Odunaiya highlighted recent initiatives aimed at expanding access to healthcare for retirees.

Odunaiya said the directorate has partnered with the National Health Insurance Authority (NHIA) to improve health insurance coverage, beginning with a pilot health insurance scheme for select pensioners, which is expected to be expanded to all eligible retirees within the next 18 to 24 months.She described the collaboration as a crucial step in PTAD’s welfare strategy for DBS pensioners, adding that their aim is to ensure that no retiree is left to bear catastrophic medical expenses alone.

We are working with NHIA to progressively enrol every eligible pensioner in an affordable scheme, she said.

According to data from PTAD’s database, plans are underway to roll out health insurance coverage that could ultimately include over 230,000 DBS pensioners.

Pensioner groups welcomed the initiative but urged faster implementation and clear communication on timelines.

The Chairperson of the Nigeria Union of Pensioners (NUP), Federal Capital Territory Chapter, Mrs. Funke Adeyemi, said access to healthcare has been a major worry for many of them.

We appreciate PTAD’s effort, but pensioners want assurance that full enrolment will be achieved soon. The waiting years for coverage isn’t realistic for people battling chronic conditions, she stated.

Another leader, Secretary of the National Association of DBS Pensioners, Mr. Ibrahim Sule said they were hopeful but cautious.

Health insurance promises must translate into clinic cards and doctor visits we can actually use, not another verification exercise, he noted.

Meanwhile, stakeholders have also highlighted the need for more consistent engagement platforms between PTAD and pensioners’ associations.

Although PTAD periodically holds interactive sessions and verification exercises across geopolitical zones, retirees say more routine consultative forums could enhance transparency and rebuild trust — especially when policy changes or payment adjustments occur.

“Regular town halls and open question and answer sessions with PTAD would help bridge the information gap,” Adeyemi added. “Many pensioners hear updates second-hand and that fuels anxiety.”

Observers further argue that broader welfare outreach initiatives remain limited. Beyond payments and verification, structured social support including targeted assistance for the most vulnerable pensioners  is seen as an area requiring policy attention.

With inflation affecting food, housing and medication costs, advocacy groups say welfare strategies must go beyond financial disbursement to include data-driven support for indigent retirees.

A public finance expert noted that while fiscal constraints remain a reality, welfare-centred pension administration could reduce social vulnerability among ageing citizens.

“Pension administration should not end at salary replacement,” he said. “It should also reflect social protection principles.”

The Defined Benefit Scheme, which predates the 2004 pension reform, is gradually winding down as the Contributory Pension Scheme expands. However, the scheme still caters to thousands of legacy retirees in the civil service, police and other government agencies.

Analysts say as the number of beneficiaries declines over time, authorities have an opportunity to deepen welfare support and improve service delivery standards for the remaining pensioners.

Efforts to reach PTAD for further comment on welfare initiatives were ongoing as of press time.

Beyond monthly stipends: Spotlight on welfare gaps in old pension scheme - The Nation Newspaper