The Military Pensions Board was established in 1975 as the Directorate of Military Pensions (DPM). Hitherto, the payment of pensions and other benefits to the Military retirees was handled by the Federal Ministry of Establishment up to 1974. It was named Military Pensions Assessments Board (MPAB) due to massive retirement after civil war. The name, Military Pensions Board (MPB) took effect in 2003 after major restructuring which necessitated the droping of the name, DPM.
The MPB is saddled with dual mandate of payment of gratuity and pension to retirees of the Nigerian Armed Forces and to provide financial advice and payment of the death benefits to Next-of-Kin of deceased personnel. The Board is technically under the office of the Honorable Minister of Defense and administratively under the office of the Chief of Defense Staff.
For the Board to discharge its statutory responsibilities effectively, the MPB is divided into four directorates namely: Directorate of Army Pensions, Directorate of Navy Pensions, Directorate of Air Force Pensions and Directorate of Finance and Accounts (DFA). One of the Directorate, DFA s headed by a Director from the office of the Accountant General of the Federation., furthermore, to assist the staff and by extension the Military Pensions Board to discharge its responsibilities, the Board has a Standing Operation Procedure (SOP) which stipulates job description, regulations and procedures governing performance of duties and services carried out in MPB.