The National Pension Commission (PenCom) has proposed a new pension package for personnel of the Nigeria Police Force under the Contributory Pension Scheme (CPS), aimed at improving retirement benefits, addressing welfare concerns, and reducing calls for the Police to withdraw from the pension system.
The proposal, which was still awaiting approval from President Bola Tinubu as of May 2026, seeks to guarantee stronger financial security for serving and retired police officers.
Speaking on the proposed reforms, PenCom said the initiative was designed to strengthen the existing CPS rather than replace it. The commission explained that the proposal followed consultations with police authorities and aligns with President Tinubu’s directive to develop a lasting solution to pension-related concerns within the Police Force and ensure dignified retirement conditions for officers.
Police personnel have, for years, expressed dissatisfaction with retirement benefits under the CPS introduced by the Pension Reform Act 2004 and amended in 2014. Many retired officers, particularly those within the lower and middle ranks, argued that their pensions were lower than what was obtainable under the former Defined Benefit Scheme, prompting repeated demands for the Nigeria Police Force to exit the CPS.
To address these concerns, PenCom proposed several measures aimed at improving pension outcomes for police personnel.
Under the proposal, retired police officers would receive a monthly pension equivalent to 100 per cent of their final active salary for life, a longstanding demand of both serving and retired personnel.
The proposal also includes a lump-sum gratuity payment valued at 200 per cent of an officer’s annual emoluments to support retirees during post-service transition and resettlement.
PenCom further proposed increasing the Federal Government’s pension contribution for serving police personnel from the current 10 per cent to 20 per cent of monthly emoluments, while employees’ contributions would remain at 8 per cent.
According to the commission, the enhanced package is expected to improve pension adequacy, particularly for rank-and-file officers whose lower earnings previously translated into smaller retirement benefits.
PenCom stated that full salary replacement as pension could help reduce poverty, health-related challenges, and financial hardship among retired officers, while also strengthening confidence among serving personnel that their years of service would be adequately rewarded.
The commission added that improved pension benefits could enhance recruitment and retention within the Police Force and reduce agitation for withdrawal from the CPS.
PenCom also noted that stronger pension contributions would not only benefit retirees but could further support economic growth through investments managed by Pension Fund Administrators (PFAs).
The commission advised serving and retired officers to keep their records updated with their Pension Fund Administrators to ensure seamless processing if the proposed package receives approval and becomes operational.
PenCom, however, stressed that successful implementation of the proposal would depend on sustainable government funding, efficient administration to prevent payment delays, and possible integration with additional welfare measures, including health insurance for retirees.
The commission maintained that the CPS, when properly strengthened, offers transparency, sustainability, and investment growth advantages that were absent under the previous pension system.
