Kehinde Fajobi
The Lagos State Government, under Governor Babajide Sanwo-Olu, has cleared ₦68.5 billion in pension arrears owed to retirees of the state’s public service.
Mr. Bode Agoro, the Head of Service (HoS) of Lagos State, made the announcement on Tuesday during a public sensitisation event on the Contributory Pension Scheme (CPS), organised by the Lagos State Pension Commission (LASPEC) in Lagos.
Agoro commended Governor Sanwo-Olu for his consistent efforts in ensuring prompt payment of retirement benefits to senior citizens. He also praised the governor for prioritising the well-being of both public servants and retirees.
“The CPS, which was passed into law on March 19, 2007, in Lagos state, was designed to provide a sustainable retirement plan that ensures financial security upon staff retirement from active service,” Agoro said.
He further highlighted the importance of staying informed about the evolving pension system: “Knowledge, they say, is power, and information is key. Therefore, a man without the right information will no doubt be deformed.”
Agoro added that the sensitisation programme was crucial to dispel any misinformation about the CPS and keep stakeholders updated on vital changes.
The HoS also addressed ongoing data update exercises, including linking the National Identification Number (NIN) with pension accounts. This initiative is intended to ease documentation and ensure smooth pension payments upon retirement.
“For those who just have their service documents regularised, changed locations or names, this exercise provides fresh opportunities to update such changes with their Pension Fund Administrators (PFAs),” Agoro explained.
He emphasised that the periodic data update exercise would make it easier for public servants to register any changes with their PFAs and facilitate the processing of their retirement benefits.
The exercise would also allow PFAs to attend to proper documentation at the Adeyemi-Bero Auditorium in Alausa, Ikeja.
Mr. Babalola Obilana, the Director-General of LASPEC, also addressed the gathering, highlighting the importance of the CPS in ensuring a secure and sustainable retirement income.
He explained that the scheme operates on the principle of shared contributions between employees and employers, which is then managed by a designated authority.
Obilana also noted that over the years, there had been several key updates to the CPS aimed at improving its efficiency. These updates included better collaboration between LASPEC, PFAs, and Annuity Service Providers (ASPs).
“Despite these advancements, it has come to our notice that many public servants in MDAs and parastatals have yet to open their Retirement Savings Accounts (RSAs),” Obilana said.
He warned that this oversight could jeopardise the financial future of such individuals and complicate their pension payment process upon retirement.
Obilana urged public servants to take advantage of the sensitisation campaign and ensure they update their records with the PFAs to avoid any future complications with their pensions.
The event was attended by public servants from various Ministries, Departments, and Agencies (MDAs) across the state.