Lagos pays N21.929b to 5,025 retirees in one year

Folashade Onanuga, LASPEC DG

The Lagos State Government says it has paid N21.929 billion to 5,025 retirees as part of their accrued pension rights under thee Contributory Pension Scheme, CPS in the last one year.

Commissioner for Establishments, Training and Pensions, Dr. Benson Oke disclosed this on Monday at the 11th Retirement Benefit Documentation Seminar for intending retirees of the civil service in Ikeja, Lagos, Southwest Nigeria.

Oke disclosed that between August 2015 and November 2016, the government paid N21.929 billion to 5,025 retirees and that as at November 2016, the accrued pension rights of about N55.941 billion had been paid to 12,426 retirees by the state government since the commencement of payment of entitlements in the CPS dispensation.

“The state government is also very much committed to the regular contribution of the monthly deduction of 7.5 percent from the salary of every employee and the employer’s 7.5 percent. As at October 2016, the total contributions remitted to the PFAs from April 2007 to date is about N70 billion.

“In essence, Lagos State Government’s funding of employees’ pension rights under the Contributory Pension Scheme in a period of nine years is approximately N125.941 billion. We are aware of the inadequacy of the funding rate recommended in the Pension Reform Law and for the year 2016, this administration, to bridge the gap, has approved a pension bailout of N6.5 billion,” he stated.

Oke, however, said the seminar was designed to educate the intending retirees on the documentation required to enable them have quick access to their terminal entitlements as well as open their eyes to the fears and challenges faced by retirees and measures to take to ensure their peace of mind as they transited into another stage of life.

Director General, Lagos State Pension Commission, LASPEC, Folashade Onanuga said the state government had not reneged in the funding of the retirement benefit redemption fund and pension sinking fund accounts, adding that pension bailout had also been provided to ensure consistency in the payment of terminal dues.

Onanuga said the state government had not shirked in its responsibilities and commitment to the regular funding of the employees’ Retirement Savings Account, as Lagos remained the only state government that till date was up to date in the monthly remittance of contributions into the Retirement Savings Account.

However, she said the main objective of the seminar was to educate the intending retirees on the steps needed to take to facilitate the quick processing of their terminal entitlements.

“Also, the seminar is to help you come to term with life out of office and the need for adequate preparation for your comfort in retirement,” she said, urging the intending retirees to invest their money in worthwhile ventures.

Acting Head of Service, Folashade Adesoye appealed to the intending retirees to ensure that they processed their files on time as delay might lead to them not being paid their accrued pension rights on time.

-Kazeem Ugbodaga