BREAKING: NASS Pension Shake-Up — Lawmakers Propose 500% Gratuity, Lifetime Pay for Top Officials

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The National Assembly is moving to dramatically overhaul its pension system with a controversial amendment bill that proposes sweeping changes to retirement benefits, including a massive increase in gratuity and lifetime pensions for senior officials.

The bill, titled National Assembly Service Pension Board (Establishment) Act (Amendment) Bill, 2025, seeks to revise the existing 2023 law by reintroducing a contributory pension scheme and restructuring how retirement benefits are managed for legislative staff.

A key highlight of the proposed legislation is the return to a contributory pension system, reversing the earlier exemption granted to National Assembly personnel. Lawmakers say the move is designed to ensure sustainability while guaranteeing that retirees receive their entitlements without delay.

The bill also introduces a significant upward review of retirement benefits. It proposes increasing gratuity payments from 300 percent to 500 percent of annual gross emoluments, a move expected to substantially raise the financial package of retiring staff.

Even more striking is the provision granting lifetime pensions to top-ranking officials who reach the equivalent of Permanent Secretary level and complete at least 20 years of service. Under the proposal, such retirees would continue to earn pensions linked to the salaries of current office holders in similar positions.

In addition, retirees would receive annual medical allowances amounting to 50 percent of their net emoluments, further boosting post-service welfare.

The amendment bill also seeks to restructure the National Assembly Service Pension Board to improve oversight and inclusiveness. The proposed board composition includes representatives of public interest from both northern and southern regions, institutional stakeholders, and a rotating member from the Parliamentary Staff Association of Nigeria. It also incorporates the Public Complaints Commission into the pension framework.

To strengthen financial management, the bill establishes a Staff Pension Account and an Operational Fund, while granting the board powers to invest pension funds in government securities, corporate instruments, and other regulated assets to ensure returns and long-term stability.

It further introduces stricter rules on pension remittances, making it mandatory for relevant authorities to transfer deducted funds within a defined timeframe, in a bid to curb delays and enforce accountability.

The proposed reforms signal one of the most significant shifts in Nigeria’s legislative pension framework in recent years. While supporters argue that the changes will improve efficiency and guarantee retirees’ welfare, critics are expected to raise concerns over the financial implications of the enhanced benefits.

If passed, the bill could redefine pension administration within the National Assembly and potentially influence broader public sector reforms across the country.