Retired federal employees under the Contributory Pension Scheme (CPS) are set to begin receiving an additional ₦32,000 monthly pension, following President Bola Ahmed Tinubu’s approval of a ₦758 billion bond to clear outstanding pension liabilities.
The bond will ensure that retirees benefit from the National Minimum Wage Amendment Act 2024 and its consequential adjustments. The ₦32,000 serves as a baseline payment for all CPS retirees in education, health, security, and the armed forces, regardless of individual savings balances.
On August 6, President Tinubu directed the “prompt implementation of long-overdue pension increases and a minimum pension guarantee, which would provide a safety net for the most vulnerable pensioners under the CPS.”
Confirming the development, an official of the National Pension Commission (PenCom) said the bond proceeds would be available once the National Assembly gives concurrence.
PenCom Director-General, Omolola Oloworaran, explained that the ₦758 billion will be allocated as follows:
- ₦253 billion for accrued rights of federal workers employed before the CPS began in 2004 and those within three years of retirement at the time.
- ₦387.5 billion to cover unpaid pension increases dating back to 2007.
- ₦107 billion for the Pension Protection Fund to augment pensions for low-income retirees.
Oloworaran noted that the move would restore confidence in the CPS, which has suffered declining trust due to years of unresolved liabilities. She assured that once the bond issuance is completed, Pension Fund Administrators (PFAs) would credit retirees’ accounts immediately, under PenCom’s strict supervision.
The National Salaries, Incomes and Wages Commission (NSIWC) had earlier confirmed that retirees would receive the ₦32,000 increase following the passage of the new minimum wage law.
