Pension: FG begins payment of additional exit benefits

…Releases N1.1bn to 175 retirees

The Federal Government has commenced the payment of additional exit benefits to retirees of treasury-funded ministries, departments and agencies (MDAs), with about N1.1 billion already paid to 175 retirees who exited the federal public service between January 1 and August 31, 2026.

The payment is being implemented under the Federal Government Exit Benefit Scheme (EBS), approved by the Federal Executive Council and made effective from January 1, 2026, as part of efforts to provide additional financial support to retiring civil servants.

Under the scheme, Federal Government employees who have served for at least 10 years are entitled to an exit benefit equivalent to 100 percent of their total annual emolument at retirement, in addition to their pension benefits under the Contributory Pension Scheme (CPS).

According to PenCom, the commencement of the payments represents a major development in the implementation of the CPS, as the government seeks to provide retirees with benefits beyond the funds accumulated in their Retirement Savings Accounts (RSAs) during their years of service.

The initiative, National Pension Commission (PenCom) said, also places the Federal Government among employers taking steps to provide additional financial protection for workers at retirement, with the arrangement potentially serving as a model for other employers to replicate.

To support the smooth implementation of the scheme, the 2026 Appropriation Act provides N32.90 billion for the Exit Benefit Scheme, while the Federal Government has so far released N12.3 billion into the dedicated Exit Benefit Scheme Account maintained with the Central Bank of Nigeria (CBN).

PenCom is supporting the implementation by working with the Office of the Head of the Civil Service of the Federation (OHCSF), the Office of the Accountant General of the Federation (OAGF), Pension Fund Administrators (PFAs) and other relevant stakeholders.

The collaboration is aimed at ensuring that eligible retirees are properly identified, their records verified and the additional benefits processed and paid without unnecessary delays.

Under the payment process, retirees are required to submit relevant documents, including their clearance letters and recent payslips, to their respective Pension Fund Administrators for verification.

The PFAs are responsible for checking the retirees’ records before forwarding the relevant information to PenCom for further validation and approval as part of the safeguards built into the scheme.

Once approval is granted, the Exit Benefit is credited to the retiree’s Retirement Savings Account through the PFA, after which the PFA transfers the entire amount to the retiree’s designated salary bank account.

PenCom stressed that the Exit Benefit is an additional payment and does not replace or affect the normal benefits retirees are entitled to receive from the balances in their RSAs under the existing pension arrangement.

“The maiden payment of N1.1 billion to 175 retirees therefore signals the formal commencement of the Additional Exit Benefits Scheme for Federal Government retirees, with subsequent retirees of Treasury-funded MDAs eligible to receive the additional benefit,” said PenCom.

The scheme is expected to strengthen the financial position of retirees at a critical stage of their lives, particularly by providing additional resources to workers who have spent years in public service before exiting active employment.

PenCom reaffirmed its commitment to working with the relevant government institutions and other stakeholders to ensure the effective implementation of the scheme and the prompt payment of Additional Exit Benefits to all eligible Federal Government retirees.