Ogun Approves Extra Pension Package to Boost Retirees’ Welfare
The Ogun State Government has approved an Additional Pension Benefit (APB) for workers and retirees under the Contributory Pension Scheme (CPS), in a move aimed at strengthening retirement security and addressing lingering concerns over pension adequacy.
The approval was announced after a high-level meeting chaired by the Commissioner for Finance and Chief Economic Adviser, Mr. Dapo Okubadejo. The meeting brought together representatives of Labour Unions, Pension Fund Administrators (PFAs), and members of the Pension Fund Management Committees to review ongoing reforms in the State’s Pension System.
Speaking at the engagement, Okubadejo reiterated the Government’s commitment to full compliance with the CPS law, describing it as both a legal obligation and a strategic policy for sustainable pension administration.
He clarified that while the former Defined Benefit Scheme (DBS) operated on a different structure, the current administration under Governor Dapo Abiodun is determined to bridge existing gaps within the CPS framework to protect workers’ interests.
According to the Commissioner, the newly approved APB is designed in the spirit of gratuity under the old DBS but differs in computation.
The benefit will be calculated using specified service-year brackets and applicable scale rates, which he noted would generally favour most retiring officers.
Okubadejo described the initiative as a pioneering reform, stating that Ogun is introducing a model not yet implemented in other States across Nigeria.
He explained that the APB would run for a period of ten years as a compensatory measure for retirees affected by delays in the remittance of accrued pension rights by previous administrations.
The delays, he said, deprived retirees of potential investment returns on their pension contributions.
To ensure sustainability, the Commissioner added that the Government plans to approach the National Pension Commission (PenCom) for approval to preserve pension contributions mainly for monthly payments.
He noted that while large lump-sum withdrawals often reduce retirees’ monthly earnings, the APB would serve as a one-off benefit to ease financial pressures at retirement. The new arrangement is scheduled to take effect from July 2025.
He further called on relevant Ministries, PFAs, and Labour Unions to intensify public awareness campaigns and organise structured pre-retirement training programmes for workers at least six months before retirement.
Permanent Secretaries at the Bureau of State and Local Government Pensions, Mrs. Arinola Adetayo and Engr. Olufisan Osiyale, said the meeting was convened to strengthen collaboration among stakeholders, resolve operational challenges, and guarantee seamless access to retirement benefits.
They emphasised that the CPS remains a tripartite partnership involving the Government, employees, and PFAs, stressing that effective synergy is critical to its success.
Reacting to the development, leaders of the Nigeria Labour Congress and the Trade Union Congress in the State, Mr. Ademola Benco and Mr. Akeem Lasisi, applauded the Governor for introducing what they described as a bold and worker-centred reform.
The Labour leaders acknowledged that concerns over the adequacy of monthly pensions under the CPS had persisted over time but expressed confidence that the Additional Pension Benefit would significantly address those worries.
They pledged labour’s support for the new pension structure, noting that it demonstrates the administration’s commitment to enhancing workers’ welfare, preserving their dignity, and guaranteeing long-term financial stability for retirees in Ogun State.
