PTAD begins COD deductions April 30

The Pension Transitional Arrangement Directorate (PTAD) has fixed April 30, 2026 as the new commencement date for the deduction and remittance of Check-Off Dues (CODs) from pensioners under the Defined Benefit Scheme, setting the stage for a decisive shift in pension administration.

The move, backed by a formal directive from the Federal Ministry of Labour and Employment, signals the Federal Government’s push to enforce order, transparency, and legal clarity in the long-running issues surrounding pension union dues.

The Executive Secretary, Tolulope Odunaiya said the implementation is not discretionary but a compliance obligation, following an official communication issued on March 26, 2026.

She stated that the position of PTAD as a neutral administrator, distancing itself from disputes among pension unions while affirming that it will strictly execute government directives and applicable laws.

She said: “At the heart of the new regime is a clear recognition framework guided by the Registrar of Trade Unions, which delineates which unions are entitled to receive deductions.

“Under the arrangement, the Nigeria Union of Pensioners (NUP) will receive dues from pensioners under the Civil Service Pensions Department, while the Federal Parastatals and Private Sector Pensioners Association of Nigeria will collect from those in parastatals, including tertiary education, health, and defunct agencies”.

Odunaiya made it clear that deductions will be processed monthly based on verified records, with remittances to the approved unions’ accounts to be completed within 14 working days after pension payments.

“Each transaction will be accompanied by a detailed schedule, and discrepancies must be reported within 30 days”.

Importantly, she emphasized that no deduction will exceed approved limits or violate pension regulations, reinforcing safeguards for pensioners.

She further affirmed that pensioners retain the right to opt out of the deductions at any time through a formal withdrawal notice.

She urged stakeholders to channel any grievances through the Registrar of Trade Unions, reiterating its commitment to transparency, fairness, and strict adherence to lawful instructions.

While the directive aims to bring structure, PTAD warned it reserves the right to suspend remittances in the event of legal disputes, irregularities, or conflicting directives, an indication that underlying tensions within pension unions may still test the rollout.

With the April 30 deadline now set, attention turns to how smoothly the policy will be implemented, and whether it will finally resolve the persistent friction over union dues in Nigeria’s pension space.