By NANA MUSA

The Federal Government has commenced the payment of additional exit benefits to retirees of Treasury-funded Ministries, Departments and Agencies (MDAs).

This is contained in a statement issued by the National Pension Commission (PenCom), in Abuja on Friday.

The commission said that about N1.1 billion had so far been paid to 175 retirees who exited the Federal Public Service between Jan. 1 and Aug. 31.

The payment was made under the Federal Government Exit Benefit Scheme (EBS), approved by the Federal Executive Council (FEC).

The commission said that the scheme took effect from Jan. 1, and provided additional financial benefits alongside pension payments under the Contributory Pension Scheme (CPS).

Under the scheme, federal civil servants with at least 10 years’ service are entitled to 100 per cent of their total annual emolument.

The commencement of the payment marks a significant development in efforts to provide retirees with additional financial support beyond their Retirement Savings Accounts (RSAs).

According to the statement, the Federal Government has allocated N32.90 billion in the 2026 Appropriation for implementation of the Additional Exit Benefits Scheme.

It said that so far, N12.3 billion had been released into the dedicated exit benefit scheme account maintained with the Central Bank of Nigeria (CBN).

PenCom is supporting implementation through collaboration with relevant government offices, Pension Fund Administrators (PFAs) and other stakeholders.

The commission is also working with the Office of the Head of the Civil Service of the Federation (OHCSF) and the Office of the Accountant-General.

The collaboration is aimed at facilitating verification, processing and prompt payment of the benefits to eligible retirees.

Under the payment process, retirees are required to submit necessary documents, including clearance letters and recent payslips, to their respective PFAs.

The commission said that the PFAs would verify the retirees’ records before forwarding the relevant information to PenCom for further validation and approval.

Following the approval, the exit benefit is credited to the retiree’s RSA through the PFA.

According to the statement, the PFA subsequently transfers the full amount to the retiree’s designated salary bank account.

PenCom said that the payment was an additional benefit and did not replace the regular benefits drawn from retirees’ RSA balances.

The Federal Government said the scheme would provide additional financial support to civil servants at retirement.

It added that the initiative underscored the importance of ensuring adequate financial resources for workers after leaving active service.

The maiden payment of N1.1 billion to 175 retirees signifies the official commencement of the scheme for the Federal Government retirees.

Consequently, subsequent retirees of Treasury-funded MDAs are eligible for an additional exit benefit equivalent to 100 per cent of their total annual emolument.

The initiative is expected to improve the financial wellbeing of public service retirees who served the nation.

PenCom said it remained committed to working with relevant stakeholders to ensure smooth implementation and prompt payment of the benefits. (NAN)