The Lagos State Government, led by Governor Babajide Sanwo-Olu, has cleared N68.5 billion in pension arrears for retirees in the state public service. Mr Bode Agoro, Head of Service for Lagos State, confirmed this on Tuesday in Lagos.
Agoro spoke at a public awareness campaign on the Contributory Pension Scheme (CPS) for state public personnel organized by the Lagos State Pension Commission (LASPEC).
The HoS applauded Sanwo-Olu for his ongoing efforts to ensure that older individuals receive their retirement benefits as soon as they leave the service. He also complimented the governor for prioritizing the well-being of public employees and pensioners.
He said the CPS, which was passed into law on March 19, 2007 in Lagos, was to provide a sustainable retirement plan that ensures financial security upon staff retirement from active service.
“Since its introduction, a lot of government policies have been made to strengthen the Nigerian pension industry, provide security for citizens’ savings, well as protect workers’ retirement benefits.
“However, all these policies have come with the need to align ourselves, as workers, with the evolvement of the scheme.
“Knowledge, they say is power, and information is key. Therefore, a man without the right information will no doubt be deformed,” he said.
According to him, the need to avoid misinformation regarding the CPS, led to the sensitisation organised by LASPEC, to disseminate vital information about important updates and changes on the CPS as it affects stakeholders.
The HoS added that the state had continually embarked on data updating exercise, occasioned by linking of National Identification Number (NIN), to all of the existing accounts, be it in the banks, telecommunication service providers and others.
He noted that it was imperative to have the data recaptured with the Pension Fund Administrators (PFAs) to ease documentation, facilitate processing and smooth pension payments upon retirement.
According to him, for those who just have their service documents regularised, changed locations or names, the exercise was poised to provide them with fresh opportunities to register such changes with their PFAs, accordingly.
He said: “Considering the different development that public servants might have experienced over the years, this exercise will be made periodic to allow you register such development with your PFAs.
“This is to enable updated information that will ease processing of your retirement benefits by LASPEC as well as the PFAs.
“As partners in progress, our PFAs will be made available at the Adeyemi-Bero Auditorium at Alausa, Ikeja, for four days as scheduled in our circular, to attend to your proper documentation.
Agoro commended LASPEC for the laudable initiatives and bringing the PFAs services to the doorsteps of the civil servants for them to update their data accordingly. He urged the workers to pay attention to the vital information concerning the pension scheme.
“Let me reiterate that this exercise is not aimed at stressing anybody, however, it is an avenue to ease the process of receiving your retirement benefits as soon as you exit the services,” he said.
In his address, Mr Babalola Obilana, Director General (DG), LASPEC, said that the sensitisations was crucial to share vital updates and changes in the CPS to the public servants.
Obilana explained that the CPS was designed to ensure that all employees have a secure and sustainable source of income upon retirement. He said the scheme operates on a simple principle: both employees and employers contribute a portion of the employee’s salary into a pension fund, which is then managed by a designated authority.
“This collective effort provides financial security for our future and fosters a culture of savings and responsibility among public servants.
“It is a mutual commitment to one another that we all need to embrace,” he said.
He noted that over the years, the administration of the CPS in Lagos state had undergone several important updates, aimed at enhancing its efficiency and transparency.
The DG said that the changes reflect on the commitment to improving the management of pension funds and ensuring that the benefits are protected and accessible.
He added that one of the most significant changes was to enhance collaboration between LASPEC, the PFAs and the Annuity Service Providers (ASPs). The director-general noted that LASPEC had been streaming the processes to ensure easy access to pension benefits at retirement.
“This collaboration is crucial in ensuring that your retirement savings grow and are managed responsibly.
“However, despite these advancements, it has come to our notice that a number of public servants in MDAs and parastatals, are yet to open their Retirement Savings Accounts (RSAs).
“This oversight has serious implications for their future financial security,” he said.
According to the DG, many of these people’s pension funds are being held in an escrow account since they do not have RSAs.
Obilana stated that the scenario was not only bad to such defaulters’ financial futures, but would also hinder their pension payout process when they retire. He urged affected workers and other state public servants to take advantage of the scheme, complete the necessary tasks, and update their data with the PFAs.
