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DBS: PTAD explains merger of service, date of birth, others
As part of efforts to address recurring concerns and eliminate confusion among retirees under the Defined Benefit Scheme (DBS), the Pension Transitional Arrangement Directorate (PTAD) has continued to provide clarifications on key administration issues.
The explanations cover the use of bank accounts, merger and transfer of service, break in service, date of birth, name changes and reasons for delays in pension payments.
Below are PTAD’s responses to some of the most frequently asked questions by pensioners.
Can spouses who are pensioners use the same or joint account to receive their pension?
No. Pension is individually based and so cannot be paid into a joint account. It is because the payment of pension should only be made directly to individual pensioners. A second or third party is not allowed to have access to your pension. Secondly, in the event that a pensioner dies, the pension should be stopped and having a joint account will mean continuous payment and withdrawal of the pension.
Can a corporate or a business account be used to receive pension?
No. Pension payment can only be made to the individual’s personal account.
Is it possible for a pensioner to earn pension from two sources under PTAD at same time?
Pensioners are not supposed to have two pay points under the same Government under the Define Benefit Scheme (DBS). They are required to provide letter of transfer of service or merger of service. Those without merger of service or transfer of service will be dropped from one payroll unless they provide any of the two documents mentioned above. This is so because a person cannot be on pension and take up another pensionable appointment.
When can a break in service be accepted?
A break in service for the purpose of pursuing a course of study can be condoned (see Circular No. B. 21600/326). The officer seeking condonation of his break in service must submit the application for condonation within three (3) years after he/she returned to Service and the condonation must be approved by the relevant authority before it can take effect.
What is merger of service?
An officer’s service can be said to have been merged when the officer leaves a pensionable appointment for another pensionable appointment and applies for the previous service to be merged with the new service. This is done to increase the length of service of the officer for the purpose of computation of pension benefits. It is not enough that the pensioner applied for merger, the application must be approved before the service can be merged or recognized.
How do I correct an error in my verification slip after I have been verified?
Send a notification to PTAD attaching a photocopy of the verification print out and the supporting document(s) for the change to be effected.
Why are Monthly Pension sometimes delayed?
A number of reasons may cause delay in receiving monthly pension, such as Non – availability of funds; Change in bank records or account numbering system; Failed payments due to technical glitches on the government’s e-payment platform; Operational delays by banks (PTAD ensures follow up)
Is change of date of Birth possible?
Yes. Only the date of birth recorded at the time of entry into the service is acceptable for processing pension. There is no room for change of information on date of birth as such change does not translate to any possible pension benefit. Requests for change of name should be done in line with the answers under Question Number 47 below.
How do I correct an error on my verification slip after verification?
Send a notification to PTAD attaching a photocopy of the verification print out and the supporting documents for the change. See the answer to Question Number 42 above.
What are the procedures for change of Account or Bank by a Pensioner?
The pensioner should forward a formal application letter addressed to the Executive Secretary explaining the reason for the change of account. He should attach the following documents to the application-
Statement of account of the old account, Statement of account of the new account, BVN slip, and Letter of non-indebtedness from the old bank.
Thereafter, he will be required to complete a certificate of indemnity in a prescribed form to indemnify the Directorate from any form of liability that may arise from the change of Account or Bank.
What are the likely reasons for change of name by a pensioner?
The main reasons why people change their name are reflect change in-marital status such as marriage, divorce, etc; Change of Family name.
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