PenCom says eligible federal workers with at least 10 years in service can receive an additional benefit equivalent to 100% of their annual emolument…….
The Federal Government has started paying additional retirement benefits to federal civil servants, with about ₦1.1bn already disbursed to 175 retirees who left the public service between January and August 2026.
The payments are being made under the Federal Government Exit Benefit Scheme, approved by the Federal Executive Council and operational since January 1, 2026.
The National Pension Commission disclosed this in a statement issued on Friday, describing the scheme as an additional financial support for eligible federal workers upon retirement.
Unlike the regular pension benefits paid under the Contributory Pension Scheme, the new benefit is designed to provide retirees with an additional payment at the point of exit from service.
“The Federal Government has commenced the payment of Additional Exit Benefits to retirees of Treasury funded Ministries, Departments and Agencies, with approximately N1.1bn already paid to 175 retirees who exited the Federal Public Service between 1 January and 31 August 2026,” the statement said.
Under the scheme, federal civil servants who have completed at least 10 years in service are entitled to an exit benefit equivalent to 100 per cent of their total annual emolument.
PenCom said the commencement of the payments represented another step in the implementation of the Contributory Pension Scheme, providing retirees with an additional benefit beyond the funds accumulated in their Retirement Savings Accounts during their years of service.
The commission also encouraged other employers to consider introducing similar arrangements to provide additional financial support for workers at retirement.
For the 2026 fiscal year, the Federal Government earmarked ₦32.90bn for the implementation of the Exit Benefit Scheme.
Of this amount, PenCom said ₦12.3bn had so far been released into a dedicated Exit Benefit Scheme Account maintained with the Central Bank of Nigeria.
“In ensuring the smooth implementation of the Additional Exit Benefits Scheme, the 2026 Appropriation provided the sum of N32.90bn. So far, the Federal Government has released N12.3bn into the dedicated Exit Benefit Scheme Account maintained with the Central Bank of Nigeria,” the statement said.
The amount released represents approximately 37.4 per cent of the total provision made for the scheme in the 2026 budget.
PenCom said it was 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 institutions to facilitate the processing and payment of the benefits.
The commission explained that retirees seeking the additional payment would be required to submit relevant documents, including clearance letters and recent payslips, to their Pension Fund Administrators.
The PFAs will verify the retirees’ records before forwarding the information to PenCom for validation and approval.
Once the payment is approved, the exit benefit is credited to the retiree’s Retirement Savings Account through the PFA. The administrator then transfers the full amount to the beneficiary’s designated salary account.
PenCom stressed that the new payment does not replace the pension benefits already available to retirees under the Contributory Pension Scheme.
“It should be emphasised that this is an additional payment, existing alongside the usual benefits drawn by the retirees from their RSA balances,” the commission stated.
The commission said the scheme was introduced to provide retiring federal civil servants with additional financial support as they transition from active employment.
It added that the initial disbursement to 175 retirees marked the formal commencement of the additional exit benefit programme.
According to PenCom, federal employees retiring from Treasury-funded Ministries, Departments and Agencies who meet the requirements will continue to qualify for an additional exit benefit equivalent to 100 per cent of their total annual emolument at retirement.
It said, “The maiden payment of N1.1bn to 175 retirees demonstrates that the Additional Exit Benefits Scheme for FGN retirees has officially commenced.”
PenCom added that it would continue working with the relevant government agencies and pension industry stakeholders to ensure the scheme is implemented effectively and eligible retirees receive their benefits promptly.
