FG begins payment of benefits to retirees
The Federal Government has started paying additional exit benefits to retirees of Treasury-funded Ministries, Departments and Agencies.
The National Pension Commission disclosed this in a statement issued in Abuja on Friday, saying about ₦1.1 billion had so far been paid to 175 civil servants who retired from the Federal Public Service between January 1 and August 31, 2026.
The payments are being made under the Federal Government Exit Benefit Scheme, which was approved by the Federal Executive Council and became effective on January 1.
The scheme provides retiring federal civil servants with an additional financial benefit alongside their regular pension benefits under the Contributory Pension Scheme.
Under the arrangement, federal civil servants who have completed at least 10 years in service are entitled to an amount equal to 100 per cent of their total annual emolument.
The Federal Government provided ₦32.90 billion in the 2026 Appropriation for the implementation of the Additional Exit Benefits Scheme.
PenCom said ₦12.3 billion had so far been released into a dedicated account for the scheme maintained with the Central Bank of Nigeria.
The commission is working with the Office of the Head of the Civil Service of the Federation, the Office of the Accountant-General of the Federation, Pension Fund Administrators and other relevant agencies to implement the programme.
The collaboration involves verifying retirees, processing their applications and ensuring that approved benefits are paid without unnecessary delays.
Retirees seeking the benefit are expected to submit required documents, including clearance letters and recent payslips, to their respective Pension Fund Administrators.
The PFAs will verify the records and forward the relevant information to PenCom for further checks and approval.
Once approved, the exit benefit will be paid into the retiree’s Retirement Savings Account through the PFA. The PFA will then transfer the full amount to the retiree’s designated salary account.
PenCom clarified that the exit benefit is an additional payment and does not replace the regular retirement benefits available to retirees from their RSA balances.
The commission said the first payment of ₦1.1 billion to 175 retirees marked the formal commencement of the scheme.
Retirees of Treasury-funded MDAs who meet the conditions will therefore be eligible for the additional payment, which is equivalent to 100 per cent of their total annual emolument.
The Federal Government said the scheme was introduced to provide greater financial support to workers as they leave active service and improve the financial wellbeing of public sector retirees.
PenCom said it would continue working with the relevant government institutions and PFAs to ensure the smooth implementation of the scheme and prompt payment of approved benefits.If you want, I can also give you 10 hot, attention-grabbing headlines for this story.
