pension

Pension consultants back gratuity reintroduction

pension

By Victor Ahiuma-Young

A former member of the Board of the National Pension Commission, PenCom, and Director, Centre for Pension Rights Advocacy, CPRA, Mr Ivo Takor, has welcomed the proposed reintroduction of gratuity payments under the Contributory Pension Scheme, CPS.

Recall of the planned partnership between the National Pension Commission (PenCom) and the Office of the Head of the Civil Service of the Federation (OHCSF), is aimed at exploring the reintroduction of gratuity for civil servants under the CPS.

Speaking on the development, Takor who was also a national Treasurer of Nigeria Labour Congress, NLC, and President of the Non-Academic Staff Union of Educational and other Institutions, NASU, said this was a welcome development,  noting that the initiative be guided by legal, inclusive, and equitable principles.

He noted that the initiative must go beyond policy declarations to deliver lasting and fair outcomes for workers.

“For this effort to yield sustainable and equitable outcomes, it must go beyond mere policy pronouncements,” he said.

Takor recommended three key steps to ensure the success of the initiative.

He stated that any decision to reinstate gratuity must be backed by law, explaining that the Pension Reform Act 2014 must be amended to incorporate gratuity as a statutory benefit.

“Relying solely on administrative directives or policy guidelines will make the initiative susceptible to inconsistency and possible reversal,” he said.

Takor also advocated for a change in the language of the initiative.

He said the use of the term “civil servants” is too narrow and might exclude other categories of public workers.

“Using the term ‘public servants’ would be more appropriate, as it covers all employees in Ministries, Departments, and Agencies (MDAs), ensuring no group is left out,” he stated.

The pension rights advocate advised o the initiative should be extended beyond the federal civil service to state workers and the private sector.

He said, “In many states, workers are denied gratuity, even as governors and their deputies enjoy lifelong benefits after eight years in office.”

He also pointed out disparities in the private sector, where top executives continue to receive generous severance packages while ordinary workers lose access to gratuity.

“This disparity is unjust and must be addressed in the spirit of equity and social justice,” Takor said.

He noted that the pension reform of 2004 was never intended to strip workers of their existing entitlements but to enhance retirement security.

He said, “Any reform that diminishes workers’ benefits erodes trust and undermines the very purpose of social protection in retirement.”

Takor added that reinstating gratuity is not just a policy correction but a moral obligation and a reaffirmation of the dignity of labour.

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