Retired federal employees under the Contributory Pension Scheme (CPS) are to receive an additional N32,000 monthly pension following the approval of a N758 billion bond by President Bola Ahmed Tinubu to clear outstanding pension liabilities.
The increment, according to officials, will ensure that retirees benefit from the National Minimum Wage Amendment Act 2024 and the consequential adjustments. It will serve as a baseline for all retirees in the education, health, security, and Armed Forces sectors under the CPS, regardless of their accumulated savings.
President Tinubu, on 6 August, directed the “prompt implementation of long-overdue pension increases and a minimum pension guarantee” to provide a safety net for vulnerable retirees.
An official of the National Pension Commission (PenCom) confirmed that with the National Assembly’s concurrence, proceeds from the bond will soon be released to settle the retirees.
PenCom’s Director-General, Omolola Oloworaran, explained that the N758 billion would be spread across three critical categories: N253 billion for accrued rights of workers employed before the CPS commenced in 2004 or close to retirement at the time; N387.5 billion to clear pension increases dating back to 2007; and N107 billion for the Pension Protection Fund, created to augment pensions for low-income earners.
She stressed that the intervention was vital to restoring confidence in the CPS, describing it as a long-overdue step to resolve nearly two decades of unpaid pension increments.
The National Salaries, Incomes and Wages Commission (NSIWC) had last year announced the adjustment, confirming that retirees would receive an additional N32,000 monthly under the new minimum wage framework.
