FG to Launch N30bn Annual Gratuity Scheme for Civil Servants
The Federal Government has announced plans to commence a N30 billion annual gratuity scheme for retiring civil servants under the Contributory Pension Scheme (CPS) in treasury funded Ministries, Departments, and Agencies (MDAs).
The National Pension Commission (PenCom) disclosed this in a statement following a strategic meeting between its Director General, Mrs. Omolola Oloworaran, and the Head of the Civil Service of the Federation (HCSF), Mrs. Didi Esther WalsonJack, in Abuja.
According to PenCom, the initiative is being developed in line with Section 4(4)(a) of the Pension Reform Act (PRA) 2014, which provides room for gratuity payments in addition to pension benefits.
Mrs. Oloworaran explained that based on the recommendations of the 2024 Stakeholders Committee on Outstanding Pension Liabilities, the scheme is estimated to cost the government about N30 billion annually a sum she described as “modest but impactful.”
“It is a critical intervention to enhance the retirement benefits of those who have served the nation diligently,” the PenCom boss said.She also highlighted past successes of PenCom’s collaboration with the OHCSF, including securing Federal Executive Council (FEC) approval for a N758 billion bond to offset pension liabilities for Federal Government workers under the CPS.
In her response, Walson-Jack commended PenCom’s proactive approach and pledged full support for the gratuity initiative. She also promised to issue necessary circulars to MDAs and partner with the Commission to finalise operational modalities.
“Civil servants have been consistently demanding gratuities, and I fully support this initiative which responds directly to their call,” she added.
The gratuity framework, when implemented, is expected to significantly improve retirement conditions for federal employees, many of whom have long advocated for additional support beyond monthly pensions.
