2,000 Lagos retirees get N4.5b accrued benefits

• Sanwo-Olu clears outstanding pension liability

By Oyebola Owolabi

Lagos State Governor Babajide Sanwo-Olu has paid another N4.5 billion to 2,000 retirees in the 105th and last retirement bond certificate presentation.

The governor, during the 103rd presentation of bond certificates, promised to settle all arrears and current pension liabilities in the public service by middle of the year. He fulfilled the promise yesterday.

This implies the government owes no outstanding pension benefits, and civil servants will henceforth get their full pension benefits and gratuity immediately after retirement.
The governor also launched a special health insurance scheme for all living retirees, who served the state.

He said: “Today, we mark the 105th Retirement Bond Certificate presentation and I am pleased to present bond certificates worth N4,461,659,536.82 to 2,000 retirees from our civil service. This development marks a historic milestone as our state’s transition into a new era of Pension Administration known as ‘Pay-As You-Go’. From now on, all retirees of the state government will be paid as they retire, provided all procedures and approvals have been completed before retirement.

“We have strategically prioritised clearing all backlogs of accrued rights payments to ensure our retirees enjoy dignity and financial stability after retirement. This commitment extends to the welfare of both current and former members of our workforce, recognising their unblemished careers in the state’s public service. These funds, along with their monthly contributions, have already been remitted into their respective Retirement Savings Accounts with the Pension Fund Administrators (PFAs).”

The governor said Lagos was the first to embrace Contributory Pension Scheme (CPS) when it began in 2004, noting that the government has paid N141.2 billion to 35,191 retirees till date.
The state has also paid N59.7 billion to 17,039 retirees in the last five years, making Lagos a top performer in pension payments.

He added: “We have also launched a Health Insurance Scheme tailored specifically for our retirees. This scheme will provide access to a wide range of medical services, from routine check-ups to specialised treatments. This initiative underscores our commitment to the well-being of our retirees, while ensuring that they receive not only what is due statutorily but also additional support and assistance to enhance your lives in retirement.”

Director-General of the Lagos State Pension Commission (LASPEC) Babalola Obilana said the settlement of backlogs of accrued rights demonstrated a significant achievement in public service, adding that the development reflected the governor’s dedication to addressing the challenges faced by our retirees.

According to him, the Pay-As-You-Go template would help secure comfortable and dignified retirement for the retirees.

Head of Service Olabode Agoro, represented by Permanent Secretary in the Public Service Office, Mrs. Sunkanmi Oyegbola, noted that the Sanwo-Olu administration has been steadfast in recognising invaluable service of the state’s workforce, which made the governor push all efforts to clear all backlogs of Accrued Rights Payments.

“The government recognises and appreciates the remarkable contributions made by our esteemed retirees. Your commitment, dedication, and sacrifices have been instrumental in the achievements of our Public Service, which in turn have significantly contributed to the progress of our great State,” he said.

Commissioner for Establishment and Training Afolabi Ayantayo said the transition to Pay-As-You-Go template has a precedent for establishing sustainable and dependable pension system, which would serve as a model in the country.

Ayantayo, represented by Permanent Secretary in the ministry, Mrs. Olubukola Abidakun, said: “This gesture will undoubtedly impact the lives of our retirees positively, rebuild trust in the state’s pension system, boost employee morale, enhance productivity and ensure that public servants can anticipate a secure retirement.”