FG Says Pension Arrears Cleared, Plans Reintroduction of Gratuity for Retiring Workers
By Erewunmi Peace
The Federal Government has announced that it has cleared all outstanding pension arrears under the Contributory Pension Scheme (CPS) and is now working toward the reintroduction of gratuity payments for retiring federal workers.
This was disclosed by the Director-General of the National Pension Commission (PenCom), Omolola Oloworaran, during a media workshop held in Lagos on Monday. She explained that the move forms part of the commission’s commitment to ensuring that retirees enjoy improved welfare and timely access to their benefits.
“The Federal Government has fully cleared all pension arrears accrued under the Contributory Pension Scheme. We are also collaborating with the Office of the Head of Civil Service of the Federation to reintroduce gratuity for workers retiring under the current scheme,” Oloworaran stated.
According to PenCom, the planned gratuity scheme aims to provide additional financial security to public servants immediately upon retirement, addressing one of the most frequent concerns raised by retirees.
Under the current CPS, workers receive monthly pension payments based on contributions made by both employees and employers. However, the old gratuity system — a lump-sum payment made to retirees — was discontinued after the pension reforms of 2004.
The PenCom DG said the proposed return of gratuity would complement the existing pension structure and help reduce the financial challenges many workers face immediately after retirement.
“We have listened to the concerns of Nigerian workers. The proposed gratuity system will provide a safety net while ensuring the sustainability of the Contributory Pension Scheme,” she added.
While the Federal Government maintains that all pension arrears have been cleared, some pension unions and retirees have urged the authorities to ensure that payments reach all eligible beneficiaries, especially those under older pension arrangements.
The reintroduction of gratuity is currently under policy review and will be implemented after necessary approvals and budgetary frameworks are concluded.
