Lagos sensitises council workers on contributory pension scheme

The Lagos State government has sensitized employees of local government areas on the importance of Contributory Pension Scheme (CPS).

Director-General of the Lagos State Pension Commission (LASPEC) Babalola Obilana said the sensitization was important to ‘discuss essential updates and improvements to the CPS, as well as emphasize its crucial role in ensuring a secure and sustainable future for all public servants’.

According to him, the CPS was established to guarantee that every employee has a reliable and sustainable source of income upon retirement. “The scheme is based on a straightforward 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’, Obilana noted.

He added: “Over the years, the administration of the CPS in Lagos State has evolved, with several key updates aimed at improving efficiency, transparency, and accessibility. These changes reflect our ongoing commitment to safeguarding pension funds and ensuring that your benefits are both protected and accessible when you need them most.

“A significant recent development has been the strengthened collaboration between LASPEC, the Pension Fund Administrators (PFAs), and the Annuity Service Providers (ASPs). LASPEC is working tirelessly to streamline processes, ensuring that your pension benefits are easily accessible upon retirement. This collaboration is essential to ensuring that your retirement savings are properly managed and continue to grow over time.

“However, it has come to our attention that a number of Public Servants have yet to open their Retirement Savings Accounts (RSAs). This oversight has serious implications for your future financial security. Without an RSA, your pension contributions remain in an Escrow Account, rather than being invested and managed to generate growth. This situation not only limits the potential of your retirement savings, but also complicates the pension payment process when you retire.

“I cannot stress enough the importance of opening your RSA without delay. If you have not done so already, I strongly urge you to take action today. The team at LASPEC is available to guide you through the registration process, assist with the required documentation, and provide information about the various PFAs available to you.

“Furthermore, it is crucial for all public servants to regularly review their RSA statements to ensure that contributions are being debited and remitted correctly. While this may seem like a small task, it plays a vital role in safeguarding your long-term financial security. By checking these statements regularly, we can confirm that contributions are being accurately reflected and deposited on time. This proactive approach helps prevent errors, delays, or potential discrepancies that could impact your retirement plans, and fosters a culture of transparency and accountability.”

Obilana also admonished the workers to update their records and participate in the Data Recapture Initiative which would ensure accurate and up-to-date information for workers.

He added: “Today’s event also provides an opportunity for you to update your records and participate in a Data Recapture Initiative with our PFAs, ensuring that we have accurate and up-to-date information for every Public Servant. Accurate data is critical for tracking contributions and ensuring that benefits are calculated and disbursed correctly.

“Effective communication, proper documentation, and timely submission of contributions are all essential elements in ensuring that employees experience a seamless pension process. I urge all stakeholders, including Local Government administrators, pension desk officers, and employees, to take full advantage of the resources available and follow best practices in pension administration.”