Wisdom Engraced
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The National Pension Commission (PenCom) and the Office of the Head of the Civil Service of the Federation (OHCSF) are working together to establish a Gratuity Framework for civil servants in treasury-funded Ministries, Departments, and Agencies (MDAs) under the Contributory Pension Scheme (CPS).
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According to PenCom, the proposed gratuity scheme is expected to cost the federal government an estimated N30 billion annually. PenCom’s Director General, Ms. Omolola Oloworaran, described the initiative as a “modest but impactful” move aimed at resolving persistent delays in pension payments and improving the welfare of retiring federal employees.
The collaboration between PenCom and OHCSF was announced during a courtesy visit by Oloworaran to the Head of the Civil Service, Mrs. Didi Esther Walson-Jack, in Abuja. Oloworaran highlighted previous collaborative successes, including the Federal Executive Council’s approval of a N758 billion bond to clear outstanding pension liabilities under the CPS
PenCom is also rolling out a one-time, comprehensive online enrolment exercise beginning in August 2025, to verify accrued pension rights for all federal workers employed before June 2004. The data gathered will enable PenCom to determine liabilities and potentially secure a bond to settle them fully.
Verified amounts will be credited directly into retirees’ Retirement Savings Accounts (RSAs), allowing them to earn returns and protecting their pensions from political interference. To facilitate the process, PenCom is developing a digital application for enrolment and has requested OHCSF’s support in directing MDAs to comply and submit the required documentation.
The Head of the Civil Service, Mrs. Walson-Jack, commended PenCom’s efforts and pledged her full support for the gratuity scheme. “Civil servants have long demanded gratuity. This scheme has my full support,” she stated, promising to issue necessary directives to ensure MDAs’ compliance.
PenCom has also introduced a new Pension Contribution Remittance System to address challenges with uncredited contributions from MDAs not on the IPPIS platform. The system mandates the use of approved Payment Solution Support Providers (PSSPs) to ensure accurate remittances.
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