The Lagos State government has settled its N35bn accrued pension rights between May 2019 and December 2021 out of the N50bn arrears inherited from previous administrations.
The Commissioner for Establishment, Training, and Pensions, Mrs. Ajibola Ponnle, said this during a press briefing on the state of affairs regarding pensions in Lagos.
According to her, the state wants to ensure that its retirees earn their pensions immediately after they retire from active service once the remaining backlog is cleared and removed.
She said, “Lagos inherited N50bn debt in accrued rights at the inception of the administration. We presently have a systemic process to clear the backlog inherited from prior administration with payment of N1bn accrued rights being paid to retirees every month.
“The Sanwo-Olu administration has paid over N35bn to 9,218 retirees as at the end of December 2021. At this rate, Mr Governor’s intention is to have cleared the entire backlog at the end of this tenure.
“This means that Lagos State would be the first state in the country including the Federal Government for retirees to have access to their RSAs.”
Ponnle said the state government is committed to the welfare and financial freedom of all retirees of the Lagos State public service. She said to increase the monthly pensions of its retirees, the state raised the monthly contributions of its workers into their Retirement Savings Accounts to 18 per cent from 15 per cent.
According to her, workers’ contribution was raised from 7.5 per cent of the monthly emolument to eight per cent, while the state raised its contribution from 7.5 per cent to 10 per cent.
According to her, the state is up to date in its payments into its workers’ RSAs as it ensured the payments are made as and when due.
“Mr Governor is committed to the welfare of all staffs both in service and those that have retired. I would like to affirm that Lagos State under the current administration has speedy resolution of all pension issues in the state,” it said.
According to the commissioner, the state pays the pensions of pensioners who retired before 2007 under the Defined Benefits Scheme and recently increased their pensions by 33 per cent in line with the minimum wage for all state pensioners.
