The Director General of the National Pension Commission (PenCom), Ms. Omolola Oloworaran, has called for the intervention of the Head of the Civil Service of the Federation, Mrs. Didi Esther Walson-Jack, to address the growing challenge of uncredited pension contributions by Ministries, Departments, and Agencies (MDAs) not integrated into the Integrated Payroll and Personnel Information System (IPPIS).
Ms. Oloworaran explained that many pension payments are made without accompanying schedules — a bottleneck that is frustrating proper reconciliation and eventual payments into contributors’ Retirement Savings Accounts (RSAs).
To tackle this, PenCom has implemented a new Pension Contribution Remittance System requiring all employers to remit pension contributions through selected Payment Solution Support Providers (PSSPs). According to Ms. Oloworaran, this policy is designed to enable accurate, prompt payments directly into workers’ RSAs, strengthening the pension administration process across the country.
The PenCom DG further called for Mrs. Walson-Jack’s intervention to aid compliance by IPPIS and non-IPPIS MDAs — including tertiary institutions and self-funding agencies — starting in June 2025.
Meanwhile, PenCom and the Office of the Head of the Civil Service of the Federation (OHCSF) are collaborating to introduce a Gratuity Framework for civil servants under the Contributory Pension Scheme (CPS). The policy was a key outcome of a high-profile meeting held in Abuja on June 13, 2025, when Ms. Oloworaran paid a courtesy visit to the Head of Service.
Explaining the framework, Ms. Oloworaran said it is designed to enable civil servants to receive 100% of their last annual gross remuneration upon retirement — a sum projected to cost the federal government N30 billion per year. The new policy, according to stakeholders’ estimates, is a significant step toward honoring the service of those who have contributed to the nation’s progress.
Additionally, Ms. Oloworaran highlighted ongoing collaborative efforts between PenCom and OHCSF, noting their previously secured N758 billion bond from the Federal Executive Council (FEC) to clear outstanding pension liabilities under the Contributory Pension Scheme.
She further revealed plans for a one-time, comprehensive online enrolment exercise starting in August 2025. This process aims to enable PenCom to compute pension obligations for civil servants who were in service prior to June 2004. The eventual amounts due will be presented to the federal government for clearing through additional bond instruments. Subsequently, these payments will be credited directly into the respective civil servants’ RSAs, allowing them to earn investment income and be sheltered from future policy transitions.
To aid the process, PenCom is developing a digital application to streamline enrolments. Ms. Oloworaran solicited the Head of Service’s support in issuing a circular mandating all MDAs to submit the necessary data for their respective workers.
In response, Mrs. Walson-Jack pledged her full support for the initiatives, commending PenCom’s forward-thinking approach in strengthening pension administration. She stressed that civil servants had long called for gratuities upon retirement and assured stakeholders of her readiness to collaborate with PenCom in developing modalities and securing necessary approvals.
To consolidate their growing collaboration, both PenCom and OHCSF have agreed to set up a Standing Committee to oversee the implementation of these reforms and address any emerging issues in the future.
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