The Ogun State Government has commenced the disbursement of additional pension benefits to over 200 retirees from the local government and State the Universal Basic Education Board under the Contributory Pension Scheme.
According to a statement shared with Sunday PUNCH, the initiative, which involves the issuance of cheques to beneficiaries, is part of efforts by Governor Dapo Abiodun to improve the welfare of pensioners in the state.
Speaking during the presentation of cheques in Abeokuta on Friday, the Permanent Secretary, Bureau of Local Government Pensions, Olufisan Osiyale, said the additional pension benefits scheme was introduced to enhance the living standards of retirees and reward their years of service.
He explained that the initiative was also designed to address disparities between pension payments under the contributory pension scheme and the defined benefit scheme.
According to him, the scheme provides a one-off payment to eligible retirees at the point of exit from service and will run for a period of 10 years.
Osiyale added that beneficiaries under the scheme would receive between 116 per cent and 280 per cent of their annual total emolument, depending on their years of service.
He described the initiative as a pioneering intervention in the contributory pension scheme in the country, noting that it would help stabilise monthly pension payments and reduce financial stress among retirees.
Also speaking, Permanent Secretaries in the Ministry of Local Government and Chieftaincy Affairs and the Local Government Service Commission, Rotimiolu Akinlesi and Olanike Ogunbona, commended the initiative, describing it as a demonstration of the state government’s commitment to workers’ welfare.
They advised beneficiaries to utilise the funds prudently, particularly in low-risk investments that could provide sustainable income.
The state leadership of the Nigeria Union of Local Government Employees also lauded the move, noting that it had addressed concerns among retirees regarding pension payments.
The union, however, urged the government to sustain regular remittances to Pension Fund Administrators to ensure the long-term viability of the scheme.
Similarly, the Local Government Pensioners Association of Nigeria described the development as a positive step towards clearing outstanding pension obligations and improving retirees’ welfare.
A representative of Pension Fund Administrators, Ismail Salau, reaffirmed that the Contributory Pension Scheme guarantees lifetime monthly pensions for retirees and called for increased awareness to address misconceptions about the scheme.
Some beneficiaries, including Ajayi Amos and Dorcas Agboola, expressed appreciation to the state government, saying the payment had reaffirmed confidence in the pension system and demonstrated that their service years had not been in vain.
