The National Pension Commission and the Office of the Head of the Civil Service of the Federation have agreed to partner to introduce a gratuity framework for civil servants in treasury-funded ministries, departments, and agencies under the Contributory Pension Scheme.

In a statement on Tuesday, PenCom indicated this was the outcome of a courtesy visit by the Director-General of PenCom, Ms Omolola Oloworaran, to the Head of the Civil Service of the Federation, Mrs Didi Esther Walson-Jack.

At the end of the meeting, PenCom and OHCSF agreed to establish a standing committee to work on the outlined reforms and address any emerging issues in the future.

Ms Oloworaran told the Head of Service that PenCom is working on modalities for the establishment of a gratuity scheme, in line with Section 4(4)(a) of the PRA 2014 for retiring employees of Federal Government treasury-funded MDAs

PenCom DG said this has been estimated to cost the Federal Government about N30bn per annum, as determined by PenCom and confirmed by the 2024 Stakeholders Committee on outstanding pension liabilities if retiring federal employees are paid 100 per cent of their last gross annual remuneration.

She said the amount represented a modest but impactful intervention to improve the welfare of those who have served the nation with dedication.