Abuja: The Federal Government has initiated the disbursement of additional exit benefits to retirees from Treasury-funded Ministries, Departments, and Agencies (MDAs). The National Pension Commission (PenCom) has announced that approximately N1.1 billion has been allocated to 175 retirees who exited the Federal Public Service between January 1 and August 31.
According to News Agency of Nigeria, the payments are part of the Federal Government Exit Benefit Scheme (EBS), approved by the Federal Executive Council and effective from January 1. The scheme is designed to supplement the pension benefits received under the Contributory Pension Scheme (CPS), offering additional financial support to federal employees at retirement.
PenCom stated that federal civil servants with a minimum of 10 years of service are eligible for an exit benefit equal to 100 percent of their total annual emolument. The commission noted that this initiative marks a significant step towards providing retirees with benefits beyond their Retirement Savings Account (RSA) balances.
The 2026 Appropriation has earmarked N32.90 billion for the scheme’s implementation, with N12.3 billion already released into a designated Exit Benefit Scheme Account at the Central Bank of Nigeria (CBN). PenCom is collaborating 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 stakeholders to ensure efficient processing, verification, and timely payment of the benefits.
Retirees are required to provide necessary documents, such as clearance letters and recent payslips, to their PFAs, who will then verify and forward the records to PenCom for validation and approval. Once approved, the Exit Benefit is credited to the retiree’s RSA through the PFA, followed by a transfer of the amount to the retiree’s designated salary bank account.
PenCom emphasized that this payment is supplementary to the standard retirement benefits from retirees’ RSA balances. The initial payouts signal the official commencement of the scheme for Treasury-funded MDA retirees, with eligible future retirees entitled to an additional exit benefit equivalent to their total annual emolument at retirement.
The scheme aims to bolster the financial support for retiring civil servants and enhance the financial security of public service retirees. PenCom reiterated its dedication to collaborating with pertinent stakeholders to ensure the scheme’s effective implementation and the timely disbursement of exit benefits.