PTAD Makes Significant Progress in Payment of Death Benefits and Gratuity

PTAD Makes Significant Progress in Payment of Death Benefits and Gratuity

The Underwriter

In a continued effort to address the backlog of death benefits and gratuity payments, the Pension Transitional Arrangement Directorate (PTAD) has made substantial strides since the commencement of the Directorate-Wide Expanded NOK & Gratuity Project in December 2023. An update from the Directorate reveals notable achievements and ongoing efforts to resolve outstanding claims.

As of July 19, 2024, PTAD has processed a total of 6,210 files. These files were submitted by beneficiaries claiming non-payment of death benefits and gratuity. Upon review, 391 Next of Kin (NOK) complaints of non-payment were found to have already been settled. 

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However, 847 claims were disqualified due to various reasons. PTAD will communicate the outcomes of these reviews to the respective claimants and pension unions so that the information can be disseminated to the NOK and pensioners.

The project identified 3,002 files requiring additional documentation. PTAD’s Correspondence Team reached out to 1,961 of these cases via phone and email, achieving a compliance rate of 21.6% with 423 claimants providing the necessary documents. Unfortunately, 1,041 claimants remain unreachable. PTAD is committed to working with all relevant stakeholders to contact and inform these beneficiaries of the required documentation.

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Furthermore, 45 new NOKs were verified after authentication of claims by Pension Unions, Service-retiring MDAs, and Estates of Deceased PTAD Pensioners. These files will undergo further processes before full validation and payment.

To date, benefits owed to 1,041 NOKs/pensioners have been computed and approved. Of these, 238 beneficiaries (184 NOKs and 54 gratuity recipients) have received payments totaling N395,559,795.09, having met all statutory requirements. The remaining 802 approved benefits await secondary documentary requirements, with 446 pending validation/authentication of Letters of Administration (LOAs) across the 36 States and the FCT.

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PTAD has dispatched 1,737 LOAs for validation to the respective High Courts of Justice and received confirmations for approximately 48%. The Directorate is working diligently with the High Courts to expedite the validation process.

Additionally, six payments from the May 2024 publication failed due to a system error. These payments have been reprocessed and included in the latest update.

The detailed payment schedule for the 238 beneficiaries from March 2024 to July 19, 2024, is attached for reference.

PTAD reaffirms its commitment to transparency and efficiency in processing and disbursing benefits. The Directorate pledges to continue its efforts to ensure that all eligible beneficiaries receive their due entitlements in a timely manner.

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