FG pays N1.1bn additional benefits to 175 retirees

The Federal Government has initiated the payout of extra exit benefits to departing civil servants, distributing approximately N1.1 billion to 175 retirees who left the Federal Public Service between January 1 and August 31, 2026. The scheme, approved by the Federal Executive Council, became effective on January 1, 2026. The National Pension Commission announced this development in a statement on Friday.

Under the Federal Government Exit Benefit Scheme, eligible Federal Government employees receive additional financial benefits upon retirement, distinct from their pension benefits under the Contributory Pension Scheme. Federal civil servants who have served for a minimum of 10 years are entitled to an exit benefit equivalent to 100% of their total annual emolument.

Approximately N1.1 billion has been disbursed to 175 retirees who exited the Federal Public Service between January 1 and August 31, 2026. The commission revealed that N32.90 billion was allocated in the 2026 budget for the implementation of the Exit Benefit Scheme, of which N12.3 billion has been released into a dedicated Exit Benefit Scheme Account. This represents around 37.4% of the total budgeted amount.

Retiring workers must submit relevant documents, including their clearance letters and recent payslips, to their Pension Fund Administrators (PFAs) to qualify for the benefits. The PFA verifies the retiree's records and forwards the information to PenCom for validation and approval. Upon approval, the exit benefit is credited to the beneficiary's Retirement Savings Account, which is subsequently transferred to the retiree's designated salary bank account.