The National Pension Commission (PenCom) and the Office of the Head of the Civil Service of the Federation (OHCSF) are collaborating to introduce a gratuity scheme for civil servants.
In a statement from PenCom on Wednesday, the commission said the framework was for civil servants in treasury-funded ministries, departments and agencies (MDAs) under the contributory pension scheme (CPS).
According to the statement, Omolola Oloworaran, director-general (DG) of PenCom, announced the plan during a courtesy visit on June 13 to Didi Walson-Jack, the head of the civil service of the federation (HCSF).
Speaking at the meeting, Oloworaran said PenCom is developing the framework for a gratuity scheme in accordance with Section 4(4)(a) of the Pension Reform Act 2014, for retiring employees of federal government treasury-funded MDAs.
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She noted that the initiative is projected to cost the government around N30 billion annually, based on estimates by PenCom and confirmed by the 2024 stakeholders committee on outstanding pension liabilities.
According to the director-general, the amount may be modest, but it represents a meaningful step toward enhancing the welfare of public servants who have served the nation with dedication.
Oloworaran attributed the recurring delay in pension payments to the late disbursement of accrued rights.
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The PenCom boss noted that previous collaboration between the commission and the OHCSF had produced tangible results, including the federal executive council’s (FEC) approval of a N758 billion bond to offset outstanding pension liabilities under the CPS.
PENCOM TO LAUNCH ONLINE ENROLMENT FOR CIVIL SERVANTS EMPLOYED BEFORE JUNE 2004
Oloworaran also announced a one-time, comprehensive online enrolment exercise aimed at establishing the accrued pension rights of all federal government workers in treasury-funded MDAs who were employed before June 2004.
According to the statement, she said the online verification and enrolment exercise, which will commence from August 2025, “will enable PenCom present to the Federal Government the amount so determined with a view to possibly raise a Bond to settle the entire liability once and for all”.
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“The DG added that the determined accrued pension rights for every eligible civil servant will be credited into their individual Retirement Savings Accounts (RSAs),” the commission said.
“On the benefits of the enrolment, the PenCom DG said retirees will start earning returns on these funds, and the system becomes shielded from political transitions, as Pension Fund Administrators (PFAs) will take full control.”
She added that PenCom is currently developing a digital platform to simplify the enrolment process.
The DG said the commission plans to roll out the online platform by August and is seeking the support of the OHCSF to issue a circular mandating all MDAs to participate in the enrolment and provide the required documentation.
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Addressing the issue of uncredited pension contributions from MDAs not enrolled on the integrated payroll and personnel information system (IPPIS), Oloworaran noted that many of the contributions were made without accompanying schedules.
To resolve this, the DG said PenCom has launched a new pension contribution remittance system, which mandates all employers to use designated payment solution support providers (PSSPs) for remitting employees’ pension contributions.
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“This ensures accurate and prompt remittance of pension contributions into respective RSAs of employees,” she said.
Oloworaran also called on the head of service to issue directives to the IPPIS office within the office of the accountant-general of the federation (OAGF), as well as MDAs not on the IPPIS platform — such as self-funded agencies and tertiary institutions — to begin using the designated PSSPs for their monthly remittances starting from June.
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On her part, Walson-Jack endorsed the proposed initiatives and applauded PenCom for its proactive approach to improving pension administration.
She assured that her office would issue the required circulars to MDAs and work closely with PenCom to develop the framework and obtain necessary approvals for the gratuity scheme.
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Walson-Jack noted that the demand for gratuity by civil servants has been longstanding and reaffirmed her full support for the initiative.
The statement added that as part of efforts to strengthen the collaboration, PenCom and the OHCSF agreed to set up a standing committee to implement the proposed reforms and tackle any future challenges.
