Retired federal employees under the Contributory Pension Scheme (CPS) are set to begin receiving an additional N32,000 monthly pension increase, following the approval of a N758 billion bond by President Bola Ahmed Tinubu to clear outstanding pension liabilities.
The initiative is aimed at ensuring that retirees benefit from the National Minimum Wage Amendment Act 2024 and its consequential adjustments.
According to the arrangement, the N32,000 increase will serve as a baseline pension for all retirees in the education and health sectors, as well as security agencies and the Armed Forces under CPS, regardless of their accumulated savings.
On August 6, President Tinubu directed the prompt implementation of long-overdue pension increases and a minimum pension guarantee to provide a safety net for the most vulnerable retirees.
An official of the National Pension Commission (PenCom) confirmed that, with the concurrence of the National Assembly, the bond proceeds would soon be available for disbursement to retirees.
Explaining further, PenCom Director-General Omolola Oloworaran disclosed that the N758 billion bond will be allocated across three major categories:
N253 billion to clear accrued rights of federal workers employed before the CPS commenced in 2004, and those close to retirement at the time.
N387.5 billion to settle pension increases dating back to 2007, nearly two decades of arrears.
N107 billion for the Pension Protection Fund, which will augment payments for low-income retirees.
She noted that Pension Fund Administrators (PFAs) will promptly credit retirees’ savings accounts once the bond issuance is concluded, while PenCom will provide strict oversight to ensure immediate payments.
“This intervention is central to restoring trust in the CPS,” Oloworaran said. “Confidence has waned in recent years due to unresolved liabilities. By settling these arrears, the government is demonstrating its commitment to safeguarding the welfare of retirees.”
The National Salaries, Incomes and Wages Commission (NSIWC) had last year announced the adjustment, confirming that all CPS retirees would receive the additional N32,000 monthly payment in line with the new minimum wage law.
