CPS Retirees to Benefit from ₦30bn Gratuity Plan

By Oluwakemi Kindness

The National Pension Commission (PenCom), in collaboration with the Office of the Head of the Civil Service of the Federation (OHCSF), is set to introduce a ₦30 billion annual gratuity scheme for retiring civil servants under the Contributory Pension Scheme (CPS).”

Director General of PenCom, Omolola Oloworaran, stated this during a courtesy visit to the Head of the Civil Service of the Federation (HCSF) Didi Walson-Jack, in Abuja to discuss ongoing pension reforms and initiatives aimed at improving the welfare of federal civil servants.

Oloworaran disclosed that PenCom is finalizing modalities for the establishment of a Gratuity Framework for employees of treasury-funded Ministries, Departments, and Agencies (MDAs) in line with Section 4(4)(a) of the Pension Reform Act (PRA) 2014.

According to a statement by the commission on Tuesday, the PenCom DG said the proposed scheme would provide for a one-time lump-sum payment at retirement, in addition to existing pension entitlements under the CPS.

Furthermore, the DG of PenCom highlighted the persistent issue of delayed pension payments due to delay in payment of Accrued Rights.

She noted that previous collaboration between PenCom and the Office of the Head of Service yielded significant progress, including securing a Federal Executive Council (FEC) approval for a N758 billion bond to clear outstanding pension liabilities under the CPS.

Oloworaran unveiled a one-time, comprehensive online enrolment exercise to establish the accrued pension rights liability of all serving federal employees of treasury-funded MDAs who were in service prior to June 2004.

She adds that this online verification and enrolment exercise, which will commence from August 2025, will enable PenCom present to the Federal Government the amount so determined with a view to possibly raise a Bond to settle the entire liability once and for all.

In response, the HCSF, Walson-Jack, expressed her full support for all the initiatives and commended PenCom for its proactive approach to improving pension administration.

She pledged to issue the necessary circulars to MDAs and to collaborate closely with PenCom in developing the modalities and securing the approvals for the Gratuity Scheme.

Walson-Jack said civil servants have been calling for gratuity and expressed her full backing for the proposed Gratuity Scheme.

To cement the partnership, PenCom and OHCSF agreed to establish a Standing Committee to work on the outlined reforms and address any emerging issues in the future.