Ogun state government introduces additional pension benefit to address contributory pension scheme concerns
The Ogun State Government has introduced an Additional Pension Benefit (APB) as part of measures to address concerns raised by stakeholders following the full implementation of the Contributory Pension Scheme (CPS) in the state.
Penpushing reports that this was contained in a communiqué issued after a series of consultative meetings between representatives of organised labour, members of the State and Local Government Pension Administration Committees, and the Commissioner for Finance and Chief Economic Adviser, Dapo Okubadejo.
The communique added that the initiative, was approved by the administration of Governor Dapo Abiodun, explaining that the Contributory Pension Scheme (CPS) became fully operational in Ogun State on July 2, 2025.
Penpushing further reports that the communique stated that stakeholders described the Additional Pension Benefit (APB) as an innovative and sustainable mechanism designed to prevent pension crises and strengthen confidence in the Contributory Pension Scheme (CPS).
The communiqué, emphasized that the Additional Pension Benefit (APB) is a one-off payment at retirement aimed at bridging gaps identified between the Contributory Pension Scheme(CPS) and the former Defined Benefit Scheme (DBS), particularly regarding gratuity.
Penpushing also reports that it added that the benefit will be calculated using graded percentages of a retiree’s Final Total Annual Emolument (TAE), based on years of qualifying service.
The communique disclosed that eligible retirees will receive between 116 percent and 280 percent of their final annual emolument as an additional benefit, depending on length of service.
Penpushing reports that it said the payment will be made directly to retirees at the point of exit, while balances in their Retirement Savings Accounts (RSAs) will be preserved to strengthen monthly pension payments.
The communiqué highlighted the state government’s financial interventions in the pension sector, noting that ₦26.35 billion has been expended to offset outstanding gratuity liabilities, alongside the commencement of amortization of accrued gratuity arrears dating back to July 2012.
Penpushing further reports that it disclosed that ₦5.89 billion has been remitted as arrears of Contributory Pension Scheme (CPS) deductions and accrued returns on investment, while ₦500 million has been paid as death benefits into the Retirement Savings Accounts (RSAs)of deceased retirees.
The communique in addition stated that, the government has commenced remittance of accrued pension rights for eligible employees, which began in July 2025, adding that as at January 2026, total remittances stood at ₦3.19 billion
“Regular monthly remittances of employer and employee contributions into Retirement Savings Accounts began in July 2025, and as of January 2026, total remittances stood at ₦3.19 billion. These steps reflect Government’s unwavering resolve to build confidence in the CPS and entrench transparency and accountability in pension administration,” the communiqué stated.
Penpushing also reports that the communique pointed out that beyond pension payments, stakeholders urged the government to leverage national pension assets for infrastructure development and affordable mortgage financing.
The communique said under the Contributory Pension Scheme (CPS) framework, contributors may access up to 25 percent of their Retirement Savings Accounts (RSA) balance as equity contribution toward residential mortgages, expanding home ownership opportunities for public servants.
Penpushing reports that it recommended strengthening engagement with Pension Fund Administrators through more responsive communication channels, including toll-free lines, enhanced pre-retirement training programmes, publication of comprehensive Frequently Asked Questions on the Contributory Pension Scheme (CPS), and periodic electronic verification exercises to maintain accurate retiree records.
The communique emphasized that stakeholders reaffirmed their commitment to ensuring that pension reforms in Ogun State balance workers’ welfare with long-term fiscal sustainability.
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