Section 5: EXEMPTION FROM THE SCHEME

(1) The categories of persons exempted from the Contributory Pension Scheme are -
(a) the categories of persons mentioned in Section 291 of the Constitution of the Federal Republic of Nigeria, 1999 (as amended) including members of the Armed Forces, the intelligence and secret services of the Federation;
(b) any employee who is entitled to retirement benefits under any pension scheme existing before the 25th day of June, 2004, being the commencement of the Pension Reform Act, 2004, but as at that date had 3 or less years to retire.
(2) Any person who falls within the provisions of subsection (1) of Second this section shall continue to derive benefit under existing pension scheme in accordance with the formula provided for in the Second Schedule to this Act or under the provisions of enabling laws.
(3) Nothing in this Act shall preclude the right of any person mentioned in subsections (1) and (2) of this Section to be paid his pension as and when due.
(4) Where an Officer exempted under Section 5(1)(b) of this Section dies in service or in the course of duty, the Federal Government Pension Transitional Arrangements Directorate and the Federal Capital Territory Pension Transitional Arrangements Directorate shall cause to be paid, en bloc, his next-of-kin or designated survivors a gratuity and pension to which the Officer would have been entitled at the date of his death calculated in accordance with Section 46 of this Act.
(5) Where an Officer exempted under this section is retired by his employer as a result of mental or physical incapacity, the Officer shall be paid gratuity and pension in accordance with Section 46 of this Act.
(6) For the purpose of sub-section (5) of this section, a properly constituted medical board shall advise the employer on the Officer's state of incapacity.