Retired Federal Workers to Receive Additional ₦32,000 Monthly Under Pension Scheme

Retired federal employees under the Contributory Pension Scheme (CPS) will soon begin receiving an additional ₦32,000 every month, following President Bola Ahmed Tinubu’s approval of a ₦758 billion bond to clear outstanding pension liabilities.

The intervention ensures that CPS retirees benefit from the National Minimum Wage Amendment Act 2024 and its consequential adjustments. The ₦32,000 monthly increase will serve as a baseline for all retirees in the education, health, security, and armed forces sectors, regardless of their accumulated savings.

President Tinubu had, on August 6, directed the “prompt implementation of long-overdue pension increases and a minimum pension guarantee” to provide a safety net for vulnerable pensioners.

Officials of the National Pension Commission (PenCom) confirmed that, with the National Assembly concurring with the President’s directive, the bond proceeds will soon be disbursed. Pension Fund Administrators (PFAs) are expected to credit retirees’ accounts immediately after funds are released.

How the ₦758 Billion Bond Will Be Allocated

PenCom’s Director-General, Omolola Oloworaran, explained that the bond will be split into three categories:

1. ₦253 billion for clearing accrued rights of federal workers employed before the CPS began in 2004, and those close to retirement at that time.
2. ₦387.5 billion to settle pension increases dating back to 2007, covering almost two decades of unpaid increments.
3. ₦107 billion for the Pension Protection Fund, designed to support low-income retirees and guarantee them a living wage.

According to Oloworaran, this intervention is vital to restoring confidence in the CPS after years of delayed payments and unresolved liabilities.

“The government’s decision to settle these arrears demonstrates its commitment to protecting the welfare of ordinary Nigerians,” she said.

The National Salaries, Incomes and Wages Commission (NSIWC) had last year announced the adjustment, confirming that retirees would earn an additional ₦32,000 per month in line with the new minimum wage law.