FG Releases N1.1bn Additional Retirement Benefits to 175 Civil Servants

The Federal Government has commenced the payment of additional retirement benefits to eligible former civil servants, with about N1.1 billion already disbursed to 175 retirees who left the Federal Public Service between January 1 and August 31, 2026.

The payment is being implemented under the Federal Government Additional Exit Benefits Scheme, which was approved by the Federal Executive Council and became effective on January 1, 2026.

The National Pension Commission, PenCom, disclosed this in a statement issued on Friday.

According to the commission, the scheme provides an additional financial benefit to eligible Federal Government employees upon retirement, separate from the pension benefits they are entitled to under the Contributory Pension Scheme.

Under the arrangement, federal civil servants who have completed at least 10 years in service are entitled to an additional exit benefit equivalent to 100 per cent of their total annual emolument at retirement.

PenCom said the first payment covered retirees from Treasury-funded Ministries, Departments and Agencies who exited the Federal Public Service between January and August 2026.

“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 commission stated.

PenCom described the commencement of the payments as an important development in the implementation of the Contributory Pension Scheme, noting that the initiative would provide retirees with additional financial support beyond the funds accumulated in their Retirement Savings Accounts during their years of active service.

The commission said the Federal Government had taken the lead in introducing additional retirement benefits and encouraged other employers to consider similar arrangements for their workers.

PenCom disclosed that N32.90 billion was allocated in the 2026 Appropriation for the implementation of the Additional Exit Benefits Scheme.

It added that the Federal Government had so far released N12.3 billion into a dedicated Exit Benefit Scheme Account maintained with the Central Bank of Nigeria.

The amount represents about 37.4 per cent of the N32.90 billion approved for the scheme in the 2026 budget.

The commission 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 stakeholders to ensure the effective processing and payment of the benefits.

Explaining the procedure, PenCom said retiring workers are required to submit relevant documents, including clearance letters and recent payslips, to their Pension Fund Administrators.

The PFAs are expected to verify the retirees’ records before forwarding the information to PenCom for further validation and approval.

Following approval, the exit benefit is credited to the retiree’s Retirement Savings Account through the PFA.
The PFA then transfers the full amount to the beneficiary’s designated salary bank account.

PenCom emphasised that the additional payment does not replace the pension benefits already available to retirees under the Contributory Pension Scheme.

The commission explained that the new payment would exist alongside the regular benefits retirees receive from their RSA balances.

It said the scheme was designed to provide additional financial assistance to federal civil servants as they transition from active employment into retirement.

According to PenCom, the initial payment of N1.1 billion to 175 retirees represents the formal commencement of the Additional Exit Benefits Scheme for Federal Government retirees.

The commission added that subsequent retirees from Treasury-funded Federal Government MDAs who meet the eligibility requirements would also qualify for an additional exit benefit equivalent to 100 per cent of their total annual emolument at retirement.

PenCom assured eligible retirees that it would continue to work with relevant government agencies and pension stakeholders to ensure the smooth implementation of the scheme and prompt payment of approved benefits.

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