The pension and gratuity which are normally goes to retired employee have been in practice in the advanced western countries, which gradually came into our under developed countries, since then during colonial regime. Pension is a stated allowance or amount of money paid regularly on monthly basis to a person on his retirement from service. Gratuity: This is a sum of money paid to a worker or military personnel on retirement or discharge from service. The amount is calculated according to the years of service of the individual concerned. Pension was not therefore the automatic entitlement of a retiree. However, several reviews have been made to pension ordinance in 1979, 1992 etc. It was the review of 1993 pension rate that other fringe benefits from part of total annual emoluments up till now. Such benefits include utility allowance and meals subsidy as per established circular Ref. No: 363216/51/X/702 of 25th January 1993. It is also pertinent to note that all retired officers (servants) were paid uniformly based on the level of which an officer retired. But review of 1993 brought a disparity in the amount paid to retiree officers in the federal and state government. An evaluation of administration of pension and gratuity schemes in the public service generally indicates some militating factors against prompt payment of retirees. Every person employed originally works for several number of years up to a specific year, would one time be retired of his post and given a name PENSIONER or RETIREE at this stage, he starts to be collect meager amount monthly, collect pension. One is to be retied if he/she is not working full time and derives at least the largest portion of financial support from the public or private pension payments. It designate the period in life when one’s role as a paid worker ceases.