PenCom Circular on Pension Rate Review for Federal Agencies

NATIONAL PENSION COMMISSION

Plot 174, Adetokunbo Ademola Crescent Wuse II, Abuja. Nigeria Email: Info@pencom.gov.ng Website: www.pencom.gov.ng Tel: +234(9)460 39 54 - 55, +234 (9) 460 39 30 CIRCULAR

Ref: PENCOM/TECH/CBRD/HCBRD/2025/37

Date: 8 December 2025 To: All Federal Government Self-Funded Agencies Subject: REVIEW OF PENSION RATES IN ACCORDANCE WITH SECTION 173(3) OF THE CONSTITUTION OF THE FEDERAL REPUBLIC OF NIGERIA, 1999, AS AMENDED Following the implementation of the various Circulars on pension increases by the Federal Government for eligible retirees of Federal Government Treasury- funded Ministries, Departments and Agencies (MDAs) under the Contributory Pension Scheme (CPS), it has become imperative for the National Pension Commission to provide further clarifications on implementation of various pension increases by Self-funded Agencies. 2. It should be noted that Section 173(3) of the Constitution of the Federal Republic of Nigeria, 1999 (as amended) provides that pension of the Federal Public Servants shall be reviewed every five years or together with any Federal Civil Service salary reviews, whichever is earlier. In addition, Section 15(4) of the Pension Reform Act (PRA) 2014 guarantees the right of retirees of the Public Service of the Federation to pension review.

1. Consequently, in view of the Federal Government’s implementation of the various pension increases for eligible retirees of FGN Treasury-funded MDAs, it is pertinent to advise Federal Government Self-funded Agencies to also implement this provision of the constitution and PRA 2014 for their eligible retirees under the

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CPS, in line with the extant Circulars of the National Salaries, Incomes and Wages

Commission (NSIWC). 4. In this regard, all Federal Government Self-funded Agencies whose Salary Structures have been captured in the NSIWC Circulars on pension increases, are advised to implement the various pension increases for their eligible retirees, in line with the relevant Circulars on each of the pension increases. 5. Furthermore, all Federal Government Self-funded Agencies whose Salary Structures are not mentioned in any of the NSIWC Circulars on pension increases, such Agencies are advised to liaise with the National Salaries, Incomes and Wages Commission to determine the appropriate pension increases that would be applicable to their retirees for implementation. 6. Attached herewith are copies of the following Circulars of the National Salaries, Incomes and Wages Commission as well as that of the National Pension Commission: i) Circular referenced SWC/S/04/S.164/289 of 5 August 2010 on 15% pension increase;

1. Circular referenced SWC/S/04/S.542/26 of 26 September 2014 on 33%

pension increase;

1. Circular referenced SWC/S/04/S.542/II/298 of 28 April 2021 on 2019

consequential adjustment in pension;

1. Circular referenced SWC/S/04/S.542/II/449 of 30 April 2024 on 20% and 28% pension increase;
2. Circular referenced SWC/S/04/S.542/III/461 of 27 September 2024 on N32,000 per month in pension consequential adjustment; and
3. Circular referenced PENCOM/INSP/C&E/CCPA/66/12/615 of 22 March 2012 on review of pension rates.
4. You are therefore kindly requested to ensure compliance with this Circular.

Thank you. Usman Musa Director, Contribution and Bond Redemption Department For: Director General

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