By Abubakar Yunusa, Abuja
The National Pension Commission (PenCom) is set to collaborate with the Office of the Head of the Civil Service of the Federation (OHCSF) to introduce gratuity.
In a statement issued by the commission in Abuja, it said that the framework was for civil servants in treasury-funded Ministries, Departments and Agencies (MDAs) under the Contributory Pension Scheme (CPS).
The Director-General (D-G) of PenCom, Omolola Oloworaran, said this when she visited the Head of the Civil Service of the Federation (HCSF).
According to Oloworaran, the gratuity scheme will be established in line with Section 4(4)(a) of the Pension Reform Act (PRA 2014) for retiring employees of Federal Government treasury-funded MDAs.
She said it was estimated to cost the government about N30 billion per annum as determined by PenCom and confirmed by the 2024 stakeholders committee on outstanding pension liabilities.
Oloworaran said that the amount represented a modest, but impactful intervention to improve the welfare of those who had served the nation with dedication.
According to her, the persistent issue of delayed payments is due to the delay in payment of accrued rights.
The D-G said that the previous collaboration between PenCom and the OHCSF yielded significant progress.
She said this include securing a Federal Executive Council (FEC) approval for the N758 billion bond to clear outstanding pension liabilities under the CPS.
Oloworaran also unveiled a one-time, comprehensive online enrolment exercise to establish the accrued pension rights liability of all serving federal employees of treasury-funded MDAs who were in service prior to June 2004.(NAN)
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