FG Clears Pension Rights Backlog, Funds Federal Workers’ Benefits Up to December 2029

The Federal Government has funded the accrued pension rights of enrolled federal workers up to December 2029, clearing a previous 21-month funding backlog and creating a 41-month surplus.

The Director-General of the National Pension Commission (PenCom), Omolola Oloworaran, disclosed this on Wednesday at the 2026 Pension Correspondents Association of Nigeria Conference in Abuja.

Oloworaran, who was represented by PenCom’s Head of Corporate Communications, Ibrahim Buwai, said the development marked a significant improvement in the funding of accrued pension rights for federal employees under the Contributory Pension Scheme.

Pension Backlog Reduced to 41-Month Surplus

According to the PenCom Director-General, the government has moved from owing 21 months of accrued pension rights to maintaining a 41-month funding surplus.

She explained that the surplus means the accrued pension rights of enrolled federal workers who are yet to retire have been funded up to December 2029.

Oloworaran also said delays in processing retirement benefits had largely been eliminated, with pension payments now being processed within a maximum of 48 hours after retirement.

PenCare and Minimum Pension Guarantee

She further highlighted the PenCare health insurance programme and the N52,500 minimum pension guarantee, both launched by President Bola Tinubu on Tuesday.

Oloworaran said PenCare was designed to reduce retirees’ healthcare expenses, allowing them to use more of their monthly pension payments to meet other needs.

She explained that the programme would be funded by pension operators and PenCom, with an independent board of trustees chaired by the commission’s pioneer Director-General, Muhammad Ahmad.

On the minimum pension guarantee, she said eligible retirees currently receiving less than N52,500 would have their monthly pensions increased to the guaranteed amount. She added that some beneficiaries had already received payment alerts during Tuesday’s launch.

Additional Exit Benefits for Retirees

The PenCom chief also disclosed that the Federal Government had approved additional exit benefits equivalent to 100 per cent of terminal emoluments for eligible retirees.

She said the benefit would take effect from January 1, 2026, as part of efforts to improve retirement benefits and strengthen the welfare of federal workers.

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