PenCom, HoS to Give Federal Workers One-Year Total Pay as Gratuity from 2026
…PenCom Proposes Improved Welfare for the Police
By Patience Ikpeme
The National Pension Commission (PenCom) is collaborating with the Office of the Head of the Civil Service of the Federation (HoS) to introduce a new gratuity scheme for treasury-funded federal workers, set to commence in 2026.
Under the proposed arrangement, retiring employees will receive one year of their total emoluments as a gratuity, providing a significant financial cushion at the end of their service.
PenCom’s Director General, Ms. Omolola Oloworaran, said the initiative stemmed from ongoing consultations with the Head of the Civil Service, Mrs. Didi Esther Walson-Jack. According to her, the gratuity scheme is part of wider reforms aimed at safeguarding the financial well-being of federal employees after retirement.
In addition, PenCom has intensified efforts to improve the welfare of police officers under the Contributory Pension Scheme (CPS).
During a high-level visit to the Inspector General of Police (IGP), Kayode Egbetokun, at Force Headquarters, Abuja, Oloworaran unveiled a series of proposals targeted at enhancing police retirement benefits.
These include the introduction of a Health Insurance Scheme for retirees, increasing monthly pensions to 75 percent of a police officer’s final salary before retirement, expanding the Retirement Resettlement Fund, and reforming the police pension structure.
She also called on the Federal Government to raise its pension contribution for police officers from 10 percent to 20 percent, saying the increase would “significantly boost retirement savings and improve living standards for officers after service.”
Explaining the rationale for retaining the CPS, the PenCom boss said the scheme was created to address the shortcomings of the old Defined Benefits Scheme (DBS), which was unfunded, lacked transparency, and left many retirees struggling financially.
“The CPS offers a sustainable and transparent framework. The concerns of the police can be addressed within this system without exiting it,” she stated. “We ask for patience and continued dialogue as we work together to implement these reforms.”
In his response, IGP Egbetokun commended PenCom for its proactive engagement with the Nigeria Police Force (NPF) on pension matters.
“We acknowledge the challenges raised by our officers, but we are committed to working constructively with PenCom to address them and maintain confidence in the system,” he said.
