The National Pension Commission (PenCom) has directed treasury-funded Ministries, Departments, and Agencies (MDAs) to submit details of employees who retired or are expected to retire in 2026, as part of preparations for the implementation of the Federal Government’s newly approved Exit Benefit Scheme.
The scheme is expected to provide additional financial support to eligible federal workers at retirement by granting them a lump-sum payment equivalent to 100 per cent of their final total annual emoluments, provided they have completed at least 10 years of service before leaving employment.
In a circular dated June 16, 2026, PenCom instructed all treasury-funded MDAs to forward information on workers who retired or are due to retire between January 1 and December 31, 2026, on or before July 6, 2026.
The circular, signed by Murtala M. Modibbo, Acting Head of the Contribution and Bond Redemption Department, was addressed to heads and chief executive officers of treasury-funded federal institutions.
According to the commission, the data collection exercise is critical to ensuring the successful rollout of the Exit Benefit Scheme, which was recently approved by the Federal Government.
“The National Pension Commission is pleased to inform you that the Federal Government has approved the implementation of an Exit Benefit Scheme for employees of Treasury-funded Ministries, Departments and Agencies,” the circular stated.
PenCom warned that all submissions must be complete, accurate, and strictly comply with the prescribed template to avoid delays in processing benefits.
The commission explained that the scheme would apply retrospectively from January 1, 2026, meaning eligible workers who have already retired this year could also benefit from the initiative.
For federal employees approaching retirement, the scheme is expected to provide a significant financial cushion in addition to existing benefits under the Contributory Pension Scheme.
Under the arrangement, eligible retirees will receive an exit benefit equivalent to their final total annual emoluments, providing additional support as they transition from active service.
The development comes amid longstanding concerns among workers and retirees over the adequacy of retirement income, particularly against the backdrop of rising inflation and increasing living costs.
PenCom disclosed that the Office of the Head of the Civil Service of the Federation has already issued implementation guidelines covering eligibility criteria, documentation requirements, payment procedures, budgeting arrangements, and the responsibilities of MDAs.
To facilitate the programme, the commission said it is upgrading its Contribution and Bond Redemption Application to incorporate a dedicated module for managing the Exit Benefit Scheme.
The scheme forms part of measures provided under the Pension Reform Act 2014 to strengthen retirement protection for employees of treasury-funded federal institutions.
Nigeria’s Contributory Pension Scheme requires both employers and employees to make regular pension contributions into Retirement Savings Accounts managed by Pension Fund Administrators.
However, labour unions and retiree groups have repeatedly expressed concerns over the financial difficulties many pensioners face after leaving service, arguing that retirement benefits often fail to keep pace with prevailing economic realities.
The introduction of the Exit Benefit Scheme is expected to provide additional financial security for eligible public servants while enhancing social protection for federal workers after retirement.
With the July 6 deadline approaching, MDAs are expected to begin compiling and validating retirement records to ensure that eligible workers receive their benefits promptly once implementation begins.
