Lagos State Government has disclosed that it has paid N14.71 billion to 3,494 retirees under the Contributory Pension Scheme, being accrued pension rights and N4.2 billion to Defined Benefits Scheme retires, otherwise known as ‘Pay As You Go’, between May 2019 and March 2021, to ensure that those who retired from Lagos State Civil Service enjoy life after diligent service to the State.
Reeling out figures of government expenditure on retirement benefits for public servants, the Commissioner for Establishments, Training and Pensions, Mrs. Ajibola Ponnle, said: “The present administration also approved a pension bailout of N13 billion in the Year 2020 Budget. A new increment in the Retirement Bond Redemption Funding Rate from 5% to 10% of the total emolument of active workers was implemented to clear the backlog of outstanding pension obligations. This is in addition to the payment of accrued pension rights of N14.71 billion to 3,494 retirees.”
Mrs. Ponnle spoke at the Y2021 Ministerial Press Briefing at Bagauda Kaltho Press Centre, Alausa, Ikeja, organised as part of activities to mark the second anniversary of Governor Babajide Olusola Sanwo-Olu’s tenure in office.
She said: “Governor Babajide Olusola Sanwo-Olu approved the payment of 33% increment for all State pensioners under the Defined Benefit Scheme and also paid the balance of the 25% rent allowance for officers on Grade Level 07 and above, who retired between May 2000 and August 2004. The Payment took effect in January 2020.”
The Commissioner explained that there are 15 approved Pension Funds Administrators (PFA) and seven approved Insurance Companies that render pension funds management and annuity services to retirees in the State, maintaining that Lagos State is a trailblazer and pacesetter in pension matters in Nigeria, having won awards as the most pension compliant State in the Federation on several occasions.
She stated that in line with Governor Sanwo-Olu’s policy of inclusion, the State Government ensured that pensioners over 70 years old were among the first to get the COVID-19 vaccination, and frequently engages relevant stakeholders such as the Nigerian Union of Pensioners, Association of Retired Heads of Service and Permanent Secretaries on behalf of retirees.
While noting that the State Government has earned recognition for its efforts to enhance the welfare and wellbeing of pensioners, Mrs. Ponnle said the Nigeria Union of Pensioners (NUP), at its 11th Quadrennial National Delegates Conference in Abuja, honoured Governor Babajide Sanwo-Olu with the distinguished award of “Excellence and Greater Commitment to Pensioners’ Welfare”.
Read more Lagos State Pension News here
Support PensionNigeria financially here, empower us to do more independent analysis of the Pension Industry in Nigeria
Subscribe to PensionNigeria Daily Newsletter and get Today’s Top Pension News delivered straight into your email box every Evening. Click here to Subscribe
Subscribe to PensionNigeria Weekly Newsletter to ensure you don’t miss any post Click here to Subscribe
Pension is Your Right,
An Insurance for Old Age
Follow PensionNigeria on Social Media LinkedIn Twitter Instagram Facebook YouTube