FG Plans N30 Billion Annual Gratuity Scheme to Boost Retirement Benefits for Civil Servants
The Federal Government of Nigeria is considering the introduction of a N30 billion annual gratuity scheme for civil servants retiring from treasury-funded Ministries, Departments, and Agencies (MDAs) under the Contributory Pension Scheme (CPS).
This initiative is being developed collaboratively by the National Pension Commission (PenCom) and the Office of the Head of the Civil Service of the Federation (OHCSF) to enhance retirement benefits and address longstanding pension payment delays.
The gratuity plan, aligned with Section 4(4)(a) of the Pension Reform Act 2014, aims to pay retiring employees up to 100% of their last gross annual salary, representing a significant welfare boost for dedicated civil servants.
The estimated annual cost of the scheme is around N30 billion, a figure confirmed by the 2024 Stakeholders Committee on Outstanding Pension Liabilities.
Both PenCom and OHCSF have pledged to work closely on the modalities and government approvals, with plans to establish a standing committee to oversee implementation and resolve emerging issues.
This move follows previous successes such as the Federal Executive Council’s approval of a N758 billion bond to clear outstanding pension liabilities under the CPS, signaling a strong government commitment to improving pension administration and retirees’ welfare.
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