From Left: The Head of the Civil Service of the Federation, Mrs. Didi Esther Walson-Jack and the Director General of the National Pension Commission, Ms. Omolola Oloworaran during a recent visit to the Head of the Civil Service of the Federation.
The National Pension Commission (PenCom) and the Office of the Head of the Civil Service of the Federation (OHCSF) are poised to introduce a Gratuity Scheme for civil servants under the Contributory Pension Scheme (CPS).
The new policy was the highlight of a high-profile meeting on June 13, 2025, in Abuja, where PenCom’s Director General, Ms. Omolola Oloworaran, met with Mrs. Didi Esther Walson-Jack, Head of the Civil Service of the Federation.
Ms. Oloworaran explained that PenCom is currently developing modalities for the Gratuity Scheme in conformity with Section 4(4)(a) of the Pension Reform Act (PRA) 2014. The move is projected to cost the federal government N30 billion per year — a sum that, according to stakeholders’ estimates, will enable the payments of 100% of the last annual gross remuneration to each retiring civil servant.
“The Gratuity Scheme is a modest but significant intervention to appreciate the service of those who have dedicated their careers to the nation’s progress,” Ms. Oloworaran said.
She further 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.
Additionally, Ms. Oloworaran revealed plans for a one-time, comprehensive online enrolment exercise starting in August 2025. This process will enable PenCom to compute pension obligations for civil servants who were in service prior to June 2004. The commission plans to present these amounts to the federal government with a view toward clearing them through additional bond instruments. Subsequently, the determined amounts will be credited directly into the Retirement Savings Accounts (RSAs) of the respective civil servants — allowing them to earn investment income and be sheltered from political 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 addressing the ongoing challenge of uncredited pension contributions from MDAs not integrated into the Integrated Payroll and Personnel Information System (IPPIS), Ms. Oloworaran explained that many payments are made without accompanying schedules. To tackle this, PenCom is implementing a new Pension Contribution Remittance System requiring all employers to use selected Payment Solution Support Providers (PSSPs) for their pension payments — ensuring accuracy and timeliness in remittances.
Furthermore, Ms. Oloworaran called for Mrs. Walson-Jack’s intervention in directing MDAs not currently on IPPIS — including tertiary institutions and self-funding agencies — to follow this new procedure starting in June 2025.
In her response, Mrs. Walson-Jack pledged her full support for these initiatives, commending PenCom’s forward-thinking approach toward 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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