Aggrieved pensioners have expressed strong dissatisfaction with the Pension Transitional Arrangement Directorate (PTAD) following its recent directive to streamline the payment and remittance of Check-Off Dues (COD) exclusively through the Federal Parastatals and Private Sector Pensioners Association of Nigeria (FEPPPAN).
This decision, announced during a Stakeholders’ Engagement meeting held on August 29, 2024, has raised concerns regarding transparency and inclusivity.
The controversy stems from a letter issued by the Registrar of Trade Unions under the Federal Ministry of Labor and Productivity, dated July 17, 2024.
The letter recognized only two pensioner unions—the Nigeria Union of Pensioners (NUP) and FEPPPAN—as eligible recipients of COD.
PTAD informed stakeholders that, effective April 2025, all COD deductions from pensioners under certain jurisdictions would be remitted solely to FEPPPAN for onward transmission to respective unions.
However, many pensioners argue that this arrangement undermines the autonomy of pensioner unions and raises questions about accountability.
They claim that the Registrar of Trade Unions lacks the authority to instruct PTAD to deduct COD from retirees’ pensions.
One pensioner remarked, “This shows connivance between the Registrar of Trade Unions, PTAD, and certain unions to forcefully deduct COD from devalued pensions without pensioners’ consent.
According to him, membership in any union should be voluntary, not compulsory.
“Any retiree who wishes to join a union must signify their interest, which was not done here. This is punitive fraud.”
Pensioners also alleged that PTAD had already begun deducting COD without proper authorization and misled retirees by claiming it was due to an error related to a 9.7% pension increment.
“Why should PTAD lie to its pensioners?” One retiree questioned. “This is a dubious deduction from retirees’ devalued pensions.”
Many pensioners expressed skepticism about consolidating COD payments under FEPPPAN’s control, arguing that FEPPPAN is a newly registered union unfamiliar to most retirees.
They criticized PTAD’s blanket enrollment of pensioners into this union without proper procedures, describing it as fraudulent and unacceptable.
The pensioners are now demanding a refund of all illegal deductions and an immediate halt to further COD deductions.
They also called for a review of the policy to ensure fair representation and equitable distribution of dues among all recognized unions.