5,025 retirees get N22bn from Lagos

About five thousand and twenty five pensioners who retired from the Lagos State public service in the last one year have been paid N21.929 billion as part of their accrued pension rights under the Contributory Pension Scheme (CPS).

Benson Oke, the state commissioner for Establishments, Training and Pensions, who disclosed this at the 11th retirement benefit documentation seminar for intending retirees from state public service.

According to the commissioner, between August 2015 and November 2016, government paid N21.929 billion to 5,025 retirees. He said as at November 2016, accrued pension rights of about N55.941 billion had been paid to a total of 12,426 retirees in Lagos since the introduction of the CPS.

“The state government is committed to the regular contribution of the monthly deduction of 7.5 per cent from the salary of every employee and the employer’s 7.5 per cent. As at October 2016, the total contributions remitted to the PFAs from April 2007 to date is about N70 billion.

“In essence, Lagos State government’s funding of employees’ pension rights under the contributory pension scheme in a period of nine years is approximately N125.941 billion. We are aware of the inadequacy of the funding rate recommended in the Pension Reform Law and for the year 2016, this administration, to bridge the gap, has approved a pension bailout of N6.5 billion,” he stated.

Folashade Onanuga, director general, Lagos State Pension Commission, (LASPEC), said the state had been faithful in funding of the retirement benefit redemption fund and pension sinking fund accounts, adding that pension bailout had also been provided to ensure consistency in the payment of terminal dues.

She explained that the main objective of the seminar was to educate the intending retirees on what they needed to do hasten the processing of their terminal entitlements.

“The seminar is to help you come to term with life out of office and the need for adequate preparation for your comfort in retirement,” she said.

JOSHUA BASSEY