FG begins paying N1.1bn additional exit benefits to 175 federal retirees

The Federal Government has commenced the payment of N1.1bn in additional exit benefits to 175 retirees under a new scheme, PenCom has disclosed. Read More: https://punchng.com/fg-pays-n1-1bn-additional-benefits-to-175-retirees/

The Federal Government has begun paying additional exit benefits to retired civil servants, releasing about N1.1 billion to 175 people who left the Federal Public Service between January 1 and August 31, 2026.The National Pension Commission (PenCom) announced the development in a statement on Friday. The payments fall under the Federal Government Exit Benefit Scheme, which the Federal Executive Council approved and which took effect from January 1, 2026.The scheme offers an extra financial package to eligible federal employees upon retirement, separate from the regular benefits they receive under the Contributory Pension Scheme. Workers who have served for at least 10 years qualify for an exit benefit equal to 100 per cent of their total annual emolument.“The Federal Government has commenced the payment of Additional Exit Benefits to retirees of Treasury-funded Ministries, Departments and Agencies, with approximately N1.1bn already paid to 175 retirees who exited the Federal Public Service between 1 January and 31 August 2026,” PenCom stated.The commission noted that the 2026 Appropriation Act allocated N32.90 billion for the scheme. So far, the government has released N12.3 billion (about 37.4 per cent of the budgeted amount) into a dedicated Exit Benefit Scheme Account at the Central Bank of Nigeria.PenCom is coordinating 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 disburse the funds.Retirees must submit clearance letters and recent payslips to their PFAs. After verification, the PFA forwards the details to PenCom for approval. Once cleared, the benefit is credited to the retiree’s Retirement Savings Account and then transferred to their designated bank account.The commission stressed that the exit benefit is an additional payment and does not replace the standard pension entitlements drawn from RSA balances. It described the initial N1.1 billion disbursement as the formal launch of the scheme and said future eligible retirees from Treasury-funded federal MDAs will also receive the same benefit.PenCom urged other employers to consider similar arrangements and pledged to continue working with stakeholders to ensure timely payments.

The Federal Government has already disbursed N1.1 billion to 175 retirees under treasury-funded Ministries, Departments and Agencies, MDAs. The National Pension Commission, PenCom, disclosed this in a statement on Friday. The commission said the retirees exited the Federal Public Service between January 1 and August 31, 2026. According to the commission, the payment is being made […] FG disburses N1.1bn to retirees under new Exit Benefit Scheme