PenCom Increases Retirees’ Income Threshold for Health Insurance Scheme
The National Pension Commission (PenCom) has increased the monthly pension income threshold for its PenCare health insurance pilot scheme from ₦70,000 to ₦150,000, a move expected to significantly expand access to free healthcare for retirees under Nigeria’s Contributory Pension Scheme (CPS). The decision is aimed at allowing more low-income pensioners to benefit from the initiative while enabling the commission to gather sufficient data to evaluate the pilot programme.
The announcement was made by PenCom Director-General Omolola Oloworaran after the third Pension Industry Leadership Council (PILC) meeting in Abuja. According to her, the commission reviewed the eligibility requirement after enrolment fell below expectations.
Why the Threshold Was Increased
PenCare, launched in March 2026, was designed to provide free health insurance to low-income retirees. The pilot programme targets 30,000 beneficiaries, but only about 13,000 retirees have enrolled so far.
To encourage wider participation, PenCom has temporarily increased the eligibility limit, meaning retirees receiving monthly pensions of ₦150,000 or less can now qualify for free health insurance under the pilot scheme. Speaking on the decision, the PenCom DG explained that the adjustment is intended solely to strengthen the pilot phase. She said “we need a critical mass to properly test the system. Running a pilot with just 10,000 people will not give us the results we want.” She emphasized that the ₦150,000 threshold is not permanent and will be reviewed once the pilot programme has been fully assessed.
Three Healthcare Packages Planned
Following the completion of the pilot programme, PenCom plans to introduce three healthcare packages tailored to retirees’ income levels.
The proposed structure includes:
Free healthcare for low-income retirees.
A co-payment package for retirees who require additional medical support.
A premium healthcare package that will allow higher-income retirees to purchase enhanced health insurance coverage at competitive rates.
According to PenCom, the long-term objective is to ensure that retirees across different income brackets have access to sustainable healthcare services while improving their overall welfare and financial security.
What This Means for Retirees
The increase in the income threshold represents immediate relief for thousands of retirees who were previously excluded from the PenCare pilot because their monthly pensions exceeded ₦70,000. By raising the limit to ₦150,000, PenCom hopes to improve healthcare access for more pensioners, strengthen participation in the pilot programme, and collect enough data to shape a nationwide healthcare support system for retirees.
This initiative could become one of the most significant welfare programmes for retirees under Nigeria’s Contributory Pension Scheme, providing broader access to affordable healthcare while enhancing the quality of life for pensioners across the country.
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