FG Commences Additional Exit Benefits for Federal Retirees
The Federal Government has commenced the payment of Additional Exit Benefits to retirees of Treasury-funded Ministries, Departments and Agencies, with about N1.1 billion already paid to 175 retirees who left the Federal Public Service between January 1 and August 31, 2026. The National Pension Commission, PenCom, disclosed this in a statement, explaining that the payments are being made under the Federal Government Exit Benefit Scheme approved by the Federal Executive Council and effective from January 1, 2026. The scheme provides an additional financial benefit to eligible Federal Government employees upon retirement, separate from their pension benefits under the Contributory Pension Scheme. Federal civil servants who have completed at least 10 years of service are entitled to an Exit Benefit equivalent to 100 per cent of their total annual emolument. PenCom said the commencement of the payments represents an important development in efforts to provide retirees with additional benefits beyond the funds accumulated in their Retirement Savings Accounts during their years of service.
For the smooth implementation of the scheme, N32.90 billion was provided in the 2026 Appropriation, while the Federal Government has so far released N12.3 billion into the dedicated Exit Benefit Scheme Account maintained with the Central Bank of Nigeria. PenCom said it is working with the Office of the Head of the Civil Service of the Federation, the Office of the Accountant General of the Federation, Pension Fund Administrators and other stakeholders to process and verify beneficiaries. Retirees are required to submit documents, including clearance letters and recent payslips, to their PFAs, which verify their records before forwarding them to PenCom for validation and approval. Once approved, the benefit is credited to the retiree’s Retirement Savings Account through the PFA before the entire amount is transferred to the retiree’s designated salary account. PenCom stressed that the payment is an additional benefit and does not replace the normal benefits retirees receive from their RSA balances. The commission said subsequent retirees from Treasury-funded MDAs would also be eligible for the additional benefit, subject to the scheme’s requirements.
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