PenCom Plans 75% Salary Pensions, Health Cover for Retired Police

By Oluwakemi Kindness

The National Pension Commission (PenCom) has unveiled plans to raise police pensions to 75 per cent of an officer’s final salary before retirement and introduce a health insurance scheme for retired officers, as part of sweeping reforms to the Contributory Pension Scheme (CPS).

PenCom’s Director General, Ms Omolola Oloworaran, disclosed the measures during a visit to the Inspector General of Police (IGP), Kayode Egbetokun, at Force Headquarters, Abuja.

She was accompanied by senior members of the commission’s management team and met with senior police officers as well as the leadership of NPF Pensions Limited, the Pension Fund Administrator managing police pension assets.

According to a statement by PenCom on Thursday, the reforms, which also include expanding the Retirement Resettlement Fund and overhauling the police pension structure, aiims at addressing long-standing concerns about the adequacy of police retirement benefits.

Ms Oloworaran says the commission is also pushing for the Federal Government to increase its pension contribution for police officers from 10 per cent to 20 per cent, a move that would significantly boost their retirement savings.

She explaines that the CPS was introduced to replace the old Defined Benefits Scheme (DBS), which was unfunded, opaque, and often left retirees in financial distress.

While acknowledging challenges with the current system, she rejects calls for the police to exit the CPS, describing such a move as “unnecessary and counterproductive.”

In addition, she notes that PenCom is working with the Head of the Civil Service of the Federation to introduce a new gratuity scheme in 2026 that will grant treasury-funded federal workers one year of total emoluments as gratuity upon retirement.

Responding, IGP Egbetokun commends PenCom’s commitment to improving police welfare and pledged the force’s cooperation in implementing the reforms.

He says the measures would restore confidence among officers and help ensure they retire with dignity and financial security.

PenCom reiterates its determination to work closely with the Nigeria Police Force to strengthen the CPS and safeguard the welfare of officers nationwide.