Under the Contributory Pension Scheme (CPS), the Nigerian government has announced intentions to launch a N30 billion annual Gratuity Framework for civil officials working in Ministries, Departments, and Agencies (MDAs) that get treasury funding.
In a statement released on Tuesday, the National Pension Commission (PenCom) stated that it is working with the Office of the Head of the Civil Service of the Federation (OHCSF) to make the plan a reality.
When PenCom Director General Omolola Oloworaran visited the Head of the Civil Service of the Federation (HCSF), Mrs. Didi Esther Walson-Jack, last week as a courtesy, they talked about the framework.
Speaking about boosting retirement benefits, Oloworaran told the Head of Service that PenCom is working on modalities for the establishment of a Gratuity Scheme, in line with Section 4(4)(a) of the PRA 2014, for retiring employees of Federal Government treasury-funded MDAs.
The PenCom DG said it has been estimated that the gratuity scheme would cost the Federal Government about N30 billion per annum, as confirmed by the 2024 Stakeholders Committee on Outstanding Pension Liabilities, if retiring federal employees are paid 100 percent of their last gross annual remuneration.
Oloworaran said the amount represented a modest but impactful intervention to improve the welfare of those who have served the nation with dedication.
She pointed out that prior cooperation between PenCom and the Office of the Head of Service had produced notable results, such as obtaining permission from the Federal Executive Council (FEC) for a N758 billion bond to settle unpaid pension obligations under the CPS.
Walson-Jack, the HCSF, responded by praising PenCom for its proactive efforts to enhance pension administration and stating her complete support for all the measures. She promised to work closely with PenCom to create the processes and obtain permissions for the gratuity system, as well as to send out the required circulars to MDAs.
Walson-Jack stated that she fully supports the suggested plan and that civil servants have been requesting gratuities.
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