FEC Approves New Gratuity Scheme for Retiring Federal Civil Servants
The Federal Executive Council (FEC) has approved a new Exit Benefit Scheme that will grant retiring Federal Civil Servants a gratuity equivalent to 100 per cent of their total annual emoluments.
The scheme, which takes effect from January 1, 2026, marks a significant step by the Federal Government to enhance the welfare of civil servants and ensure they retire with improved financial security after years of service.
The decision followed extensive consultations and technical work by an Inter-Ministerial Technical Committee set up by the Office of the Head of the Civil Service of the Federation.
The committee collaborated with key government institutions, including the National Pension Commission, the Budget Office of the Federation, and the Office of the Accountant-General of the Federation to develop a sustainable framework for the implementation of the scheme.
The Exit Benefit Scheme is designed to complement the existing Contributory Pension Scheme by providing an additional financial cushion for civil servants in treasury-funded Ministries, Extra-Ministerial Departments and Agencies who have served the nation for at least 10 years.
The Head of the Civil Service of the Federation, Didi Esther Walson-Jack, described the approval as a landmark decision that reflects the Federal Government’s recognition of the dedication and sacrifices of public servants.
She said the initiative would significantly improve the retirement benefits of federal workers while strengthening confidence in government policies aimed at protecting their welfare.
Walson-Jack also noted that the new scheme aligns with ongoing reforms aimed at building a more efficient, motivated and people-focused civil service. She added that detailed implementation guidelines will be released soon.
The reintroduction of gratuity payments comes 22 years after the introduction of the Contributory Pension Scheme and is seen as a major reform aimed at improving the long-term welfare of federal civil servants.
