KEY POINTS
- Ogun Government has released N6.75 billion for gratuity and Additional Pension Benefits to retirees.
- N2.751 billion will cover gratuity for 432 beneficiaries.
- N4 billion has been released as Additional Pension Benefits from July 2025 to date.
- The state says it will continue addressing outstanding pension obligations.
MAIN STORY
The Ogun Government has released N6.75 billion to settle gratuity and Additional Pension Benefits owed to retirees in the state.
The Head of Service, Olanrewaju Saka, disclosed this in a statement issued on Friday in Abeokuta, saying the payment formed part of efforts to reduce outstanding pension obligations and improve the welfare of retired public servants.
Saka said N2.751 billion was approved for gratuity payments to 432 beneficiaries, while another N4 billion was released as Additional Pension Benefits to eligible retirees from July 2025 to date.
He said the government would continue to prioritise retirement benefits for workers who served the state despite competing demands on public resources.
Saka explained that the Additional Pension Benefit was introduced to address the gap that could arise between benefits retirees would have received under the former Defined Benefit Scheme and those payable under the Contributory Pension Scheme.
He said while employees under the contributory system accumulate retirement savings in their Retirement Savings Accounts, some retirees could receive lower benefits than they would have been entitled to under the previous pension arrangement.
According to him, the additional benefit is therefore paid by the state government to eligible retirees to bridge part of the difference.
Saka stressed that the payment was separate from retirees’ Retirement Savings Accounts and would not affect the savings accumulated in those accounts.
He said the latest release reflected the administration’s efforts to strengthen the financial security of retirees, adding that outstanding pension and gratuity obligations would continue to be addressed in a systematic and sustainable manner.
The Head of Service also assured retirees that the government would maintain transparency and engagement in the administration of their retirement benefits.
He urged serving public officers to ensure that their pension records and other relevant documentation were accurate and up to date.
THE ISSUES
- The size of the latest release highlights the financial burden created by outstanding pension and gratuity obligations on state resources.
- The Additional Pension Benefit is intended to address differences in retirement outcomes created by the transition from the Defined Benefit Scheme to the Contributory Pension Scheme.
- Keeping pension records and documentation accurate remains important because errors or outdated information can affect the processing of retirement benefits.
- The sustainability of future payments will depend on the state’s ability to continue meeting pension obligations alongside other demands on public finances.
WHAT’S BEING SAID
“APB was introduced to cushion the difference between the pension benefits retirees would have received under the old Defined Benefit Scheme (DBS) and those payable under the Contributory Pension Scheme (CPS).” – Olanrewaju Saka
“The APB, therefore, provides an additional payment from the state government to eligible retirees to bridge part of that gap.” – Olanrewaju Saka
WHAT’S NEXT
The Ogun Government says it will continue to address outstanding pension and gratuity obligations in a systematic and sustainable manner.
Serving public officers are also expected to keep their pension records and documentation accurate and up to date.
BOTTOM LINE
Ogun’s N6.75 billion release provides payments to retirees while addressing part of the state’s outstanding pension obligations. The government says further obligations will be handled progressively as part of its retirement welfare commitments.
