The Pension Transitional Arrangement Directorate (PTAD) has announced that it will commence the deduction and remittance of Check-Off Dues (COD) from pensioners’ payments effective April 30, 2026, marking a significant shift in pension administration under the Defined Benefit Scheme.
The move follows a directive from the Federal Ministry of Labour and Employment, aimed at restoring order, transparency, and legal clarity in the handling of pension union dues across the country.
According to PTAD Executive Secretary Tolulope Odunaiya, the implementation is not optional but a compliance requirement aligned with existing labour laws and regulatory frameworks.
Under the new system, deductions will be made monthly from verified pension records and remitted to approved pension unions within 14 working days after pension payments.
The framework recognises only two unions for COD remittance:
The Nigeria Union of Pensioners (NUP) for civil service retirees
The Federal Parastatals and Private Sector Pensioners Association of Nigeria (FEPPPAN) for parastatal pensioners
PTAD clarified that the agency will act strictly as a neutral administrator, distancing itself from disputes among pension unions while ensuring full compliance with government directives.
Importantly, the directorate emphasized that deductions will remain within approved limits and must comply with pension regulations, with safeguards in place to protect retirees’ earnings.
Pensioners also retain the right to opt out of the deductions at any time by submitting a formal withdrawal request, reinforcing the voluntary nature of union membership.
The agency further noted that it reserves the right to suspend deductions or remittances in cases of legal disputes, irregularities, or conflicting directives, indicating that implementation may still face challenges from ongoing union disagreements.
With the April 30 rollout date confirmed, stakeholders are now watching closely to see how smoothly the policy will be implemented and whether it will resolve long-standing tensions over pension union dues in Nigeria.