PenCom extends deadline as 118,901 federal workers remai....

The Federal Government’s outstanding pension liability to thousands of long-serving workers remains difficult to fully determine as 118,901 eligible employees had yet to complete mandatory verification and enrolment as of July, prompting the National Pension Commission (PenCom) to extend the exercise to December 31, 2026.

PenCom said only 31,099 employees had completed the process out of an estimated 150,000 active Federal Government workers entitled to accrued pension rights, leaving about 79.3 per cent of the estimated eligible population yet to enrol.

The commission disclosed the extension in a statement on its website, citing low participation despite the exercise having commenced in February 2026 and originally scheduled to end on July 31.

The figures also show a significant data gap. Ministries, Departments and Agencies (MDAs) had uploaded 62,320 records of active employees and retirees to PenCom’s platform by July, but only 31,099 employees had completed enrolment.

The exercise covers employees of treasury-funded Federal Government MDAs who were already in service as of June 30, 2004, before the transition from the old Defined Benefit Scheme to the Contributory Pension Scheme.

The economic importance of the exercise goes beyond record-keeping. Accrued pension rights represent benefits earned by workers before the 2004 pension transition, with the liabilities to be determined through actuarial valuation.

PenCom said completing the exercise would enable the government to establish the extent of its outstanding pension obligations and make adequate budgetary provisions for their settlement.

The commission’s guidelines provide for the verification and enrolment of prospective retirees of Federal Government treasury-funded MDAs through an online process.

Under the process, MDAs upload the records of eligible employees while workers subsequently complete enrolment with their Pension Fund Administrators (PFAs). Pension Desk Officers within MDAs are also expected to coordinate and support the exercise.

PenCom said the process is being conducted through its Contributions and Bond Redemption Application, known as COBRA, which is used to capture, validate and process information required to determine accrued pension entitlements.

Once the accrued rights are properly determined and funded, the benefits will be credited to the affected workers’ Retirement Savings Accounts, where they can earn investment returns.

The delay has fiscal implications because incomplete records make it harder for the government to establish the full size and timing of its pension obligations. That can complicate budget planning and leave future administrations facing liabilities that have not been fully quantified.

The extension also comes amid wider efforts by PenCom to digitise pension administration and improve the accuracy of retirement records. The commission has expanded online verification and enrolment systems for Federal Government treasury-funded MDAs, alongside other digital initiatives aimed at improving access to pension services.

PenCom urged eligible employees who have not enrolled, as well as those who began but did not complete the process, to use the additional five months to conclude the exercise.

For the Federal Government, the December deadline is therefore not merely an administrative extension. Closing the data gap is essential to putting a more accurate value on legacy pension obligations and ensuring that future budgets adequately provide for workers’ accrued rights.