The Ogun State Government has announced that retirees in its civil and public service will now receive significantly higher retirement benefits following the introduction of a new Additional Pension Benefit (APB) under the Contributory Pension Scheme (CPS).
Governor Prince Dapo Abiodun made this known on Tuesday in Abeokuta during the presentation of cheques to retirees, stating that the initiative will ensure between 116 per cent and 280 per cent of retirees’ Total Annual Emoluments (TAE), thereby improving both the value and timing of payments.
Speaking through the Secretary to the State Government, Mr. Tokunbo Talabi, Abiodun said the move was designed to address long-standing concerns about delayed gratuities and low retirement payouts. He added that between 70 and 80 per cent of retiring workers would now earn more than they previously received under the old system.
Abiodun explained that while the Federal Government provides gratuity equivalent to 100 per cent of a retiree’s final annual salary, Ogun State has gone beyond this by approving a minimum of 116 per cent, which can rise to as high as 280 per cent depending on years of service.
“What this means is that, unlike in the past when gratuity payments were delayed, retirees will now receive improved and timely benefits,” he said.
“Our minimum is 116 per cent, going up to 280 per cent, which is significantly higher than the 100 per cent benchmark.”
The governor noted that his administration inherited substantial pension and gratuity liabilities on assumption of office but has since taken steps to clear them. He added that the government has also ensured retirees benefit from returns on delayed remittances, thereby increasing the overall value of their entitlements.
According to him, under the APB framework, retirees will receive a one-off lump sum as an additional pension benefit, while their full pension contributions remain with their Pension Fund Administrators (PFAs).
Abiodun reaffirmed his administration’s commitment to retirees’ welfare, stating that despite other financial pressures, supporting retirees remains a moral responsibility of government.
Earlier, the Head of Service, Mr. Kehinde Onasanya, described the initiative as a “game changer,” noting that it bridges the gap between the old Defined Benefit Scheme and the Contributory Pension Scheme.
“It ensures retirees receive immediate financial support upon exit from service,” Onasanya said.
Labour leaders also welcomed the development. Mr. Ahmed Benco of the Nigeria Labour Congress and Mr. Akeem Lasisi of the Trade Union Congress described the initiative as the first of its kind in Nigeria and urged other states to adopt similar measures.
Similarly, the Chairman of the Nigeria Union of Pensioners, Ogun chapter, Mr. Waheed Oloyede, praised the programme as a major step towards improving retirees’ welfare but called for transparency in its implementation.
Speaking on behalf of beneficiaries, Mr. Suraju Awoyemi expressed gratitude to the state government, saying the initiative has helped to ease long-standing fears among retirees and demonstrates a genuine commitment to their well-being.
