PenCom: FG Commences Additional Exit Benefit Payments to Retirees

The Federal Government has commenced payment of additional exit benefits to retirees of Treasury-funded Ministries, Departments and Agencies (MDAs).

This is contained in a statement issued by the National Pension Commission (PenCom) in Abuja on Friday, which disclosed that approximately N1.1 billion has so far been paid to 175 retirees who exited the Federal Public Service between January 1 and August 31.

The payment was made under the Federal Government Exit Benefit Scheme (EBS), approved by the Federal Executive Council (FEC). According to PenCom, the scheme took effect from January 1 and provides additional financial benefits alongside pension payments made under the Contributory Pension Scheme (CPS). Under its terms, federal civil servants with at least 10 years of service are entitled to 100 per cent of their total annual emolument as an exit benefit.

The commencement of payments marks a significant milestone in efforts to provide retirees with additional financial support beyond what they receive from their Retirement Savings Accounts (RSAs). The statement noted that the Federal Government has allocated N32.90 billion in the 2026 Appropriation for the implementation of the Additional Exit Benefits Scheme, with N12.3 billion already released into a dedicated exit benefit account maintained with the Central Bank of Nigeria (CBN).

PenCom said it is supporting the scheme's implementation through close collaboration with relevant government offices, Pension Fund Administrators (PFAs), and other stakeholders — including the Office of the Head of the Civil Service of the Federation (OHCSF) and the Office of the Accountant-General. This collaboration is aimed at facilitating the verification, processing, and prompt payment of benefits to eligible retirees.

Under the payment process, retirees are required to submit relevant documents — including clearance letters and recent payslips — to their respective PFAs. These PFAs then verify the retirees' records before forwarding the information to PenCom for further validation and approval. Once approved, the exit benefit is credited to the retiree's RSA through the PFA, which subsequently transfers the full amount to the retiree's designated salary bank account.

PenCom clarified that this payment is an additional benefit and does not replace the regular pension benefits drawn from retirees' RSA balances. The Federal Government said the scheme is designed to provide extra financial support to civil servants at the point of retirement, underscoring the importance of ensuring adequate financial resources for workers after they exit active service.

The maiden payment of N1.1 billion to 175 retirees officially marks the commencement of the scheme for Federal Government retirees. Going forward, subsequent retirees from Treasury-funded MDAs will be eligible for an additional exit benefit equivalent to 100 per cent of their total annual emolument.

The initiative is expected to improve the financial wellbeing of public service retirees who have dedicated their careers to serving the nation. PenCom said it remains committed to working with relevant stakeholders to ensure the smooth implementation and prompt payment of these benefits.