Federal Executive Council (FEC) has approved a new exit benefit scheme that will grant retiring federal civil servants a gratuity worth 100 percent of their annual pay, in addition to the existing contributory pension package.
Gatekeepers News reports that the approval was announced on Thursday, March 5, 2026, in Abuja by the Office of the Head of the Civil Service of the Federation (OHCSF).
Under the policy, federal employees who have completed at least 10 years of service will be eligible to receive a lump‑sum gratuity equivalent to their total annual emoluments upon retirement, effective January 1, 2026.
According to the statement, the scheme complements the existing Contributory Pension Scheme (CPS) introduced 22 years ago by providing a significant additional financial cushion for retirees. It is designed to improve welfare and ensure that long‑serving civil servants retire with greater financial security and dignity.
The decision follows extensive deliberations and technical input from an inter‑ministerial committee set up by the OHCSF, working with the National Pension Commission (PenCom), the Budget Office of the Federation, and the Office of the Accountant‑General of the Federation, which developed a sustainable implementation framework for the initiative.
Mrs Didi Esther Walson‑Jack, Head of the Civil Service of the Federation, described the approval as a profound acknowledgement of the invaluable contributions of federal civil servants to national development. She said the policy will significantly enhance retirement packages and boost confidence in the government’s commitment to workers’ welfare.
Detailed guidelines for putting the gratuity scheme into effect are expected to be issued by the relevant authorities in the coming weeks.
