The National Pension Commission (PenCom) has proposed a sweeping reform of retirement benefits for officers of the Nigeria Police Force under the Contributory Pension Scheme (CPS), including lifetime monthly pensions equivalent to 100 per cent of their final salary and a gratuity of 200 per cent of their annual emoluments upon retirement.
According to the Leadership newspaper, the measure is part of federal government efforts to address persistent agitation from retired police personnel who say CPS payouts are inadequate.
The reform will see retired police officers receive a monthly pension equivalent to 100 per cent of their final salary for life and gratuity payments amounting to 200 per cent of annual emoluments, benefits that many officers have been clamouring for years.
According to the newspaper, retirees under the scheme have raised concerns over poor pension payouts, with some saying they receive as little as N30,000 to N80,000 monthly, while also lamenting the inadequacy of their lump-sum retirement benefits.
Some other recommendations include increasing active officers’ monthly pension contribution for serving police officers from the current 10 to 20 per cent, while employee contributions will remain at 8 per cent.
The new arrangement, which includes a monthly pension equivalent to an officer’s last salary and increased gratuity benefits, is expected to strengthen financial security for retired personnel and boost the morale of officers still in active service.
The measure is expected to significantly improve Retirement Savings Account (RSA) balances, enhance pension payouts, and strengthen the long-term sustainability of the pension structure.
If approved by President Bola Tinubu, the augmentation plan for police personnel will reflect the government’s recognition of the police’s critical role in maintaining national security and public order, as well as the need to ensure officers’ dignity and stability after retirement.
Police pensioners who have been protesting against the CPS insisted that the scheme, which requires both employers and employees to contribute monthly into Retirement Savings Accounts (RSAs) managed by Pension Fund Administrators (PFAs), has worsened their welfare.