The Federal Government has commenced the payment of additional exit benefits to retiring civil servants, disbursing about N1.1bn to 175 retirees who left the Federal Public Service between January 1 and August 31, 2026.
The payment is being made under the Federal Government Exit Benefit Scheme, which was approved by the Federal Executive Council and took effect from January 1, 2026.
The National Pension Commission 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 their pension benefits under the Contributory Pension Scheme.
Under the arrangement, federal civil servants who have served for at least 10 years are entitled to an exit benefit equivalent to 100 per cent of their total annual emolument.
“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.
PenCom said the commencement of payment marked another development under the Contributory Pension Scheme, as the government sought to provide retirees with benefits beyond the funds accumulated in their Retirement Savings Accounts during active service.
It added that the Federal Government had taken the lead in providing additional retirement benefits and urged other employers to consider similar arrangements.
The commission disclosed that N32.90bn was provided in the 2026 Appropriation for the implementation of the Exit Benefit Scheme.
Of the amount, the Federal Government has so far released N12.3bn 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 N12.3bn released represents about 37.4 per cent of the N32.90bn provided 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 stakeholders to process and pay the benefits.
Explaining the payment procedure, the commission said retiring workers are required to submit relevant documents, including their clearance letters and recent payslips, to their PFAs.
The PFA is expected to verify the retiree’s records before forwarding the information to PenCom for further validation and approval.
Once approved, the exit benefit is credited to the beneficiary’s Retirement Savings Account through the PFA. The administrator subsequently transfers the entire amount to the retiree’s designated salary bank account.
PenCom stressed that the payment does not replace the existing pension benefits 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.
It said the scheme was designed to provide retiring federal civil servants with additional financial support as they leave active service.
The commission added that the initial N1.1bn payment to 175 retirees signalled the formal commencement of the scheme.
According to PenCom, subsequent retirees from Treasury-funded Federal Government MDAs who meet the scheme’s requirements will be eligible 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 to work with relevant stakeholders to ensure the implementation of the scheme and prompt payment of benefits to eligible Federal Government retirees.
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