No fewer than One Hundred and Eleven (111) Retirees have been presented bank cheques by the Ogun State Governor, Prince Dapo Abiodun under the newly introduced Additional Pension Benefit (AFB) Initiative in order to give them a new lease of life after retirement.
The Governor, while speaking at the ceremony marking the official presentation of the cheques, at the Obas' Complex Oke-Mosan, Abeokuta, said the initiative was introduced by his administration for beneficiaries under the Contributory Pension Scheme ( CPS) as a one-off intervention aimed at bridging the gap between the pension entitlements of retirees under the CPS and those of their counterparts under the Defined benefits Scheme as commitment of his administration to innovation and fairness in pension administration as the Beneficiaries got between
The Governor, represented by the Secretary to Ogun State Government, Mr. Tokunbo Talabi, informed that the initiative had become imperative to alleviate the suffering of the retirees who deserved good life after meritorious service to their State and to tackle head-on the huge pension liability that his administration inherited which grew from a minimal N 2 billion in 2007 to N 26 billion by 2021 and projected to reach N 40 billion by 2029.
Abiodun said the growing trend of the pension liability was unsustainable and would be difficult for successive governments to pay as the number of retirees and the cost implication continued to grow astronomically.
‘’The inability of previous administrations to fund the CPS consistently, necessitated an amendment of the Pension Reform Law in 2013 which shifted the transition period and effective commencement of the CPS to July 2025. As a result, employees who would retire statutorily before that date were exempted from CPS and placed under the Transitional Pension Scheme which essentially retained the Defined Benefits Scheme for that category of workers,’’ the Governor said.
Abiodun noted that the development meant that pensionable officers who were in service as at 31st December, 2007 and were due to retire on or before 1st July, 2025 were covered under the Transitional Pension Scheme which necessitated the operation of both Defined Benefits Scheme and Contributory Pension Scheme.
He noted that the magnitude of these obligations were significant, required deliberate and responsible financial planning adding that since 2021, the present administration had commenced payment of outstanding gratuities which stood at over Twenty-Six Billion and had since then ensured timely and consistent remittances of Accrued Pension Rights into the Retirement Savings Accounts of retired and intending retirees.
The Governor added that payment of palliatives to retirees between July and December 2025 totaling over N237 million had commenced as well as remittance of arrears of COS deductions alongside Return on Investment, which stands at over N 5 Billion.
Abiodun said these efforts were practical demonstration of his government's sincerity and unwavering commitment as a responsive government that keeps faith with its people as the presentation of cheques for the Additional Pension Benefits represented yet another milestone in his administration's effort to ensure dignity, confidence and financial security to the retirees.
Also Speaking, Ogun State Head of Service, Mr. Kehinde Onasanya, said the Governor had implemented 116 percent to over 200 percent for retirees in Ogun State as against 100 percent of the annual salary of retirees provided by law.
Onasanya also applauded the Governor for the innovation and humane implementation of the APB for retirees urging the beneficiaries to make judicious use of the money to better their lives and create wealth for themselves to enjoy a good life in retirement.
On his Part Chairman of the Nigeria Union of Pensioners, Ogun State Council, Chief Waheed Oloyede, speaking on behalf of the executives and the entire Union expressed heartfelt gratitude to the Governor for his approval of the Additional Pension Benefits (APB), for retirees under the Contributory Pension Scheme (CPS), and particularly for the presentation of cheques to the beneficiaries promptly after retirement.
Oloyede added that the initiative was the first of its kind in Nigeria and a positive step towards improving Pensioners welfare, acknowledging the government's prompt and proactive steps to addressing agitations bordering on retirement benefits of retirees.
Speaking on behalf of beneficiaries, Mr. Suraju AwóyẹmÃ, expressed deep gratitude to Government for allaying the fears of retirees over the years and genuine commitment to retirees' welfare that culminated into the innovation of the APB.
Odunayo Ogunleye,
Information and Public Relations Officer, Office of the SSG
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