The Katsina state government has reaffirmed its commitment to clearing the outstanding ₦20 billion gratuity arrears owed to retired workers, following a previous payment of ₦23 billion covering arrears from 2019 to 2023. Chairman of the State and Local Government Pension and Gratuity Committee, Dr. Farouk Aminu, highlighted ongoing efforts to ensure civil servants receive their gratuities promptly upon retirement, with verification of liabilities nearing completion and funds to be released by Governor Dikko Radda.

The newly enacted 2025 Pension Reform Law introduces a dual-structure contributory pension model combining a Contributory Defined Benefits Scheme (CDBS) and a Pure Contributory Pension Scheme (CPS). This system safeguards existing pensioners and those close to retirement under the old plan while transitioning others to a contributory scheme with professionally managed funds. The reform mandates a 20 percent combined monthly pension contribution from both government and employees, aiming to create a sustainable pension funding framework for the next 30 years.