Police Yet to Exit Contributory Pension Scheme as FG Introduces 100% Exit Benefit for Retirees

Amid widespread reports suggesting that the Nigeria Police Force has exited the Contributory Pension Scheme (CPS), emerging details indicate that no such exit has taken place. Rather, the Federal Government has approved a new 100% Exit Benefit Scheme designed to complement existing pension benefits for eligible federal workers, including police personnel.

The initiative introduces a one-off gratuity for treasury-funded employees who have served for at least 10 years. Under the policy, qualified retirees will receive a lump-sum payment equivalent to 100 per cent of their total annual emoluments—their gross annual salary, including basic pay and all approved allowances at the point of retirement.

The new benefit does not replace the Contributory Pension Scheme. Retired officers will continue to receive their statutory pension entitlements through their Pension Fund Administrators (PFAs), including retirement lump sums and monthly pension payments. The exit benefit is an additional welfare package aimed at providing financial support immediately after retirement.

The Nigeria Police Force has consequently directed personnel to undergo urgent documentation to facilitate the implementation of the scheme. The exercise is intended to enable the National Pension Commission (PenCom) to verify personnel records using federal payroll platforms such as IPPIS and GIFMIS before payments are processed through a dedicated Central Bank of Nigeria account.

The policy took effect retrospectively from January 1, 2026, with transitional arrangements covering eligible officers who retired earlier in the year and the next-of-kin of qualified personnel who died within the period.

To illustrate, a Deputy Superintendent of Police (DSP) earning a gross monthly salary of ₦300,000 at retirement would have annual emoluments of ₦3.6 million. Under the new policy, the officer would receive a one-off gratuity of ₦3.6 million, while still retaining all pension benefits payable under the CPS.

The clarification comes amid public confusion over reports of the Police’s purported exit from the Contributory Pension Scheme. Available information indicates that while discussions on the future of the Police pension arrangement are ongoing, the Nigeria Police Force has not yet exited the CPS. The newly approved Exit Benefit Scheme is therefore an additional retirement benefit and not a replacement for the existing pension system*l.