The Ogun State Government has unveiled an Additional Pension Benefit as part of measures to address concerns surrounding the full implementation of the Contributory Pension Scheme in the state.
The development was contained in a communiqué issued after a series of consultative meetings between organised labour, members of the State and Local Government Pension Administration Committees, and the Commissioner for Finance and Chief Economic Adviser, Dapo Okubadejo.
The Contributory Pension Scheme became fully operational in Ogun State on July 2, 2025, following years of transition from the Defined Benefit Scheme.
According to the communiqué, the newly introduced Additional Pension Benefit is a one off payment to be made at retirement. It is designed to bridge gaps identified between the Contributory Pension Scheme and the former Defined Benefit Scheme, particularly in relation to gratuity.
Under the arrangement, eligible retirees will receive between 116 percent and 280 percent of their Final Total Annual Emolument, depending on their years of qualifying service.
The benefit will be paid directly to retirees at the point of exit, while funds in their Retirement Savings Accounts will remain intact to support stronger monthly pension payments.
Stakeholders described the initiative as innovative and sustainable, expressing confidence that it would prevent pension crises and further strengthen trust in the Contributory Pension Scheme.
The communiqué also detailed the government’s financial commitments to pension administration. It stated that ₦26.35 billion has been expended to offset outstanding gratuity liabilities.
The government has equally commenced the amortisation of accrued gratuity arrears dating back to July 2012.
In addition, ₦5.89 billion has been remitted as arrears of Contributory Pension Scheme deductions and accrued returns on investment, while ₦500 million has been paid as death benefits into the Retirement Savings Accounts of deceased retirees.
The government further disclosed that remittance of accrued pension rights for eligible employees has commenced. 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.
Beyond pension payments, stakeholders urged the government to leverage national pension assets for infrastructure development and affordable mortgage financing. Under the Contributory Pension Scheme framework, contributors may access up to 25 percent of their Retirement Savings Account balance as equity contribution toward residential mortgages.
The communiqué also recommended closer engagement with Pension Fund Administrators through more responsive communication channels, including toll free lines, expanded pre retirement training programmes, publication of comprehensive Frequently Asked Questions on the scheme, and periodic electronic verification exercises to maintain accurate retiree records.
