The Ogun State government has announced that retirees in its civil and public service will receive significantly higher benefits under the Contributory Pension Scheme (CPS), following the introduction of the Additional Pension Benefit (APB) initiative. The scheme offers retirees between 116 percent and 280 percent of their Total Annual Emoluments (TAE).
Governor Dapo Abiodun disclosed this on Tuesday during the official presentation of cheques to retirees at the Oba’s Complex. Represented by the Secretary to the State Government, Tokunbo Talabi, the governor stated that between 70 and 80 percent of retiring workers would benefit more under the new arrangement than under the previous gratuity system.
He explained that while the Federal Government provides gratuity equivalent to 100 percent of a retiree’s final annual salary, Ogun State has exceeded this benchmark by approving a minimum of 116 percent, rising to as high as 280 percent 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. Our minimum is 116 percent, going up to 280 percent, which is significantly higher than the 100 percent benchmark,” Abiodun said.
The governor noted that his administration inherited substantial pension and gratuity liabilities but has since implemented measures to address them comprehensively. Beyond settling outstanding obligations, the government ensured that retirees received returns on delayed remittances, thereby enhancing the value of their entitlements.
Under the APB framework, retirees now receive a one-off lump sum as an Additional Pension Benefit, while their full pension contributions remain intact with Pension Fund Administrators (PFAs). This arrangement results in stronger monthly pension payments. “Previously, about 25 percent of total pension savings would be taken as a lump sum. Now, that deduction is no longer necessary, as the APB serves as the lump sum, leaving the full contributions to generate stronger monthly pension payments,” the governor explained.
Abiodun reaffirmed that, despite competing fiscal demands, his administration has prioritised retirees’ welfare, describing their well-being as a moral obligation. The initiative reflects the government’s commitment to improving the quality of life for retirees while ensuring timely and enhanced pension benefits under a sustainable framework.
