Sections 30 and 31 of the Pension Reform Act 2004 (PRA 2004) provides for the establishment of the Pension Transitional Arrangement Department (PTAD) and the FCT Pension Transitional Arrangement Department. These departments were given the responsibility of overseeing the management of pension under the defined benefit scheme for pensioners not transiting to the Contributory Pension Scheme.

Section 30(4) of the Act also specifies that the PTADs shall operate under the rules, regulation and directives made by the National Pension Commission (hereinafter referred to as the Commission) from time to time. These guidelines are therefore issued to specify minimum basic operational requirements to assist the PTAD in achieving its objectives as spelt out by the PRA 2004.