FEC Approves 100% Tip for Retired Federal Public Employees…

The Federal Executive Council has approved a new exit benefits program that will provide retired federal public employees with a tip equivalent to 100% of their total annual compensation.

The Office of the Head of Civil Service of the Federation made this known in a statement issued on Thursday in Abuja by the Director of Press and Public Relations, Mrs. Eno Olotu.

According to Olotu, the program will come into effect from January 1, 2026 and is designed to strengthen the federal civil service welfare structure by ensuring that officers who have served the nation for a minimum of 10 years retire with greater financial security.

He explained that the approval followed the recommendations of an inter-ministerial technical committee established by the Office to review and develop the programme’s framework.

The committee worked in collaboration with the National Pensions Commission, the Budget Office of the Federation and the Office of the Accountant General of the Federation to design a sustainable framework for its implementation.

Olotu added that the new exit benefit would complement the existing contributory pension scheme and further strengthen retirement income security for federal civil servants in Treasury-funded ministries, extra-ministerial departments and agencies.

The Federation’s head of civil service, Didi Walson-Jack, praised the council for approving the project.

He described the decision as a bold step that reflects the commitment of President Bola Ahmed Tinubu’s administration to recognize the dedication and service of federal civil servants.

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“This endorsement is a profound recognition of the invaluable contributions of our public servants who have dedicated their productive years to public service and national development,” he said.

Walson-Jack added that the exit benefits system would significantly improve the pension package of public employees and increase confidence in the government’s commitment to their well-being.

He noted that the initiative also aligns with ongoing reforms aimed at building a more motivated, performance-oriented and people-centred civil service.

According to her, detailed guidelines for the implementation of the program will be published in due course.

The reintroduction of gratuity for federal civil servants comes 22 years after the introduction of the contributory pension system in the country.

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