The Katsina State Government has announced plans to settle over N20 billion in outstanding gratuity arrears owed to retired civil servants, while unveiling a new pension reform law aimed at ensuring prompt payment of benefits upon retirement.
Speaking at a press conference on Friday, Chairman of the State and Local Government Pension and Gratuity Committee, Dr Farouk Aminu, said verification of liabilities accrued between September 2023 and October 2025 is nearing completion.
Governor Dikko Umar Radda has pledged to release the funds immediately upon conclusion of the exercise.
Dr Aminu revealed that the government had earlier cleared N23 billion in gratuity arrears covering the period from the fourth quarter of 2019 to August 2023, describing it as a major milestone in restoring trust in the state’s pension system.
"The fresh commitment to pay over N20 billion further demonstrates Governor Radda’s resolve to completely eliminate the backlog that has caused hardship for retirees and undermined pension administration,” he said.
A key highlight of the reform is the commitment to pay gratuities to retiring workers within the same month of retirement, a long-standing demand of civil servants in the state.
New 2025 Pension Reform LawThe newly enacted 2025 Pension Reform Law introduces a dual-structure contributory pension system designed to guarantee sustainable and timely payment of retirement benefits for state and local government workers.
The two schemes to run concurrently are:Contributory Defined Benefits Scheme (CDBS): For existing pensioners and workers with five years or less to retirement.
Both government and employees will contribute to a pooled fund managed by licensed Pension Fund Administrators (PFAs).
Pure Contributory Pension Scheme (CPS): For workers with more than five years to retirement. Contributions will go into individual Retirement Savings Accounts (RSAs), similar to the federal model.
The law mandates a total monthly contribution of 20% of employees’ emoluments (split between the employer and employee) to ensure long-term funding stability for the next 30 years.
Dr Aminu emphasised that the reforms protect accrued rights of older workers while transitioning younger ones into a more sustainable, professionally managed pension framework.
With these measures, the Katsina State Government says it is determined to end decades of delayed gratuity payments and build a reliable retirement benefits system for its workforce.
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