PenCom police pension reform proposal urges FG to raise pensions to 75% of police officers’ final salary and increase FG contribution to 20%

PenCom police pension reform proposal is at the center of renewed national attention as the National Pension Commission (PenCom) calls for sweeping changes to improve the welfare of retired police officers in Nigeria.

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During a high-level visit to the Inspector-General of Police, Kayode Egbetokun, PenCom Director-General Ms. Omolola Oloworaran urged the Federal Government to increase its pension contribution for police officers from 10% to 20%, and to raise their monthly pensions to 75% of their final salary before retirement.

This visit came in the wake of widespread protests by retired police officers, who have long decried poor retirement benefits and demanded an exit from the Contributory Pension Scheme (CPS).

The Director-General, however, dismissed the idea of exiting the CPS as “unnecessary and counterproductive,” instead advocating for reforms within the system.

“The issues facing retired police officers can be resolved without abandoning the CPS. What is needed is comprehensive restructuring and sustained government support,” Oloworaran stated.

PenCom’s proposal includes several transformative reforms:

• Raising monthly pension to 75% of an officer’s last salary
• Doubling FG contribution for police pensions from 10% to 20%
• Expanding the Retirement Resettlement Fund
• Introducing health insurance for retirees
• Overhauling the structure of police pensions for greater equity

The Commission also revealed it is partnering with the Head of Civil Service of the Federation to introduce a new Gratuity Scheme starting in 2026, which will grant one year of total emoluments to treasury-funded federal retirees.

Responding to the proposal, IGP Egbetokun commended PenCom’s initiative and reiterated the Nigeria Police Force’s commitment to constructive engagement.

“We understand the pain of our personnel. This partnership with PenCom is a step toward ensuring our officers retire with dignity,” he noted.

President Bola Tinubu has also thrown his weight behind pension reform. Earlier this month, he directed PenCom to urgently resolve the longstanding concerns of police retirees, emphasizing the importance of honouring those who serve and protect the nation.

“Our officers must not serve the nation in fear of poverty at retirement,” the President reportedly said.

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The PenCom Police Pension Reform Proposal marks a critical turning point in the long-running debate on law enforcement welfare, aiming to not only restore dignity to retired officers but also boost morale among serving personnel.