Good news for Nigerian retirees under the Contributory Pension Scheme (CPS)! The National Pension Commission (PenCom) has announced a N3.6 billion boost to monthly pensions starting June 2025.

This new initiative, called "Pension Boost 1.0", is designed to increase monthly payouts for over 233,000 retirees who receive their pensions through the programmed withdrawal method — managed by Pension Fund Administrators (PFAs).

What’s Changing?

According to PenCom Director-General, Ms. Omolola Oloworaran, monthly pension payments under this scheme will rise from ₦8.3 billion to ₦11.9 billion, thanks to a revised pension enhancement template that adjusts payouts based on investment returns.

“This increase is a result of our structured and transparent mechanism that allows pensions to grow as the returns on pension fund investments increase,” Oloworaran explained during a quarterly media briefing in Lagos.

Who Benefits?

✅ Retirees on Programmed Withdrawal — These are pensioners who receive monthly payments from their retirement savings through PFAs.
❌ Retirees on Life Annuity — Managed by insurance companies, this group will not benefit from the Pension Boost, as they are no longer part of the CPS structure once they opt for the annuity option.

Why This Matters

This move is a big win for retirees relying on their pensions to manage daily expenses amidst rising inflation. By aligning pension payouts with actual investment performance, PenCom is helping ensure that retirees enjoy greater value and security in their post-work years.

What’s Next?

PenCom says Pension Boost 1.0 is just the beginning of more improvements to come. The Commission aims to continue adjusting payments in the future as returns grow, keeping pensioners better protected over time.

Final Word:
 

This enhancement shows a positive step towards rewarding loyalty and providing comfort to Nigeria’s retirees. If you're a retiree under programmed withdrawal, expect to see your pension grow starting this month — all thanks to PenCom’s Pension Boost initiative.