Jumbo pension looms for police as PenCom pushes lifetime full-pay retirement

By Victor Ahiuma-Young

The National Pension Commission (PenCom) has concluded plans to introduce a major pension reform package for personnel of the Nigeria Police Force under the Contributory Pension Scheme (CPS), a move that could see retired officers earning their full salary for life.

The proposed arrangement, currently awaiting the approval of President Bola Tinubu, is designed to address years of agitation and protests by police retirees over poor pension payments and welfare challenges under the CPS.

Under the new framework, retired police officers would receive a monthly pension equivalent to 100 per cent of their final salary throughout their lifetime, while gratuity payments would rise to 200 per cent of annual emoluments.

The package is also expected to increase the Federal Government’s pension contribution for serving police personnel from the current 10 per cent to 20 per cent monthly, while employees would continue to contribute eight per cent.

Sources familiar with the proposal said the enhanced structure is aimed at significantly improving Retirement Savings Account (RSA) balances, boosting pension payouts and guaranteeing long-term financial security for police retirees.

The development is being seen as a landmark effort to end the lingering controversy surrounding the continued inclusion of the Nigeria Police Force in the contributory pension scheme.

For years, police pensioners have accused the scheme of worsening their welfare, with many retirees claiming they receive between ₦30,000 and ₦80,000 monthly despite decades of service to the nation.

The dissatisfaction has been fueled by comparisons with other security agencies such as the military, the Department of State Services (DSS), and intelligence organisations that were exempted from the CPS and returned to more favourable pension structures.

PenCom and labour leaders, however, insist that strengthening the existing contributory pension system remains a more sustainable option than completely withdrawing the police from the scheme.

According to pension advocates, improving welfare packages, reviewing pension calculations and introducing supplementary retirement benefits would provide a more transparent and financially stable solution for both serving and retired police personnel.

The proposed pension overhaul comes on the heels of President Tinubu’s approval of a N758 billion Federal Government bond to clear pension backlogs and arrears owed to retirees, including police pensioners, in 2025.

The intervention led to the payment of outstanding pension arrears dating back to 2012 and an upward review of monthly pension payments for retirees.

Stakeholders believe the latest initiative, if approved, would not only restore confidence among retired officers but also boost the morale of serving personnel who have long expressed concerns over their post-service welfare.

Analysts say the reform reflects growing recognition by the Federal Government of the critical role played by the police in maintaining national security and public order, as well as the need to guarantee dignity and economic stability for officers after retirement.

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