Ogun State Introduces Additional Pension Benefits to Cushion Retirees Amid CPS Implementation

Ogun State has unveiled a one-off Additional Pension Benefits (APB) scheme to support civil servants who retired under the Contributory Pension Scheme (CPS) following its full implementation on July 2, 2025. The initiative aims to bridge the gap between the legacy Defined Benefit Scheme (DBS) and the CPS, providing financial succor and reinforcing retirees’ confidence in the pension system.

This announcement was made during a media briefing organized by the Ministry of Information and Strategy in collaboration with the Bureau of State and Local Government Pensions at the Governor’s Office Press Center, Oke-Mosan, Abeokuta.

The Permanent Secretary of the Bureau of State Pensions, Mrs. Arinola Adetayo, explained that APB is a sustainable mechanism designed to prevent pension crises while strengthening trust in the CPS. She noted that the benefit would be calculated as a graded percentage of a retiree’s Total Annual Emolument (TAE), taking into account years of service.

“APB is a strategic intervention to ensure that retirees enjoy financial dignity and confidence in the CPS,” Adetayo said, adding that the initiative is a model for other states to emulate.

Adetayo further highlighted the four key institutions in the pension ecosystem:

1. National Pension Commission (PENCOM) – Regulates the pension industry.

2. Pension Funds Administrators (PFAs) – Manage retirees’ pension funds.

3. Pension Funds Custodians (PFCs) – Safeguard pension assets.

4. Bureau of State and Local Government Pensions – Implements state-level policies.

On the Local Government pensions front, Engr. Olufisan Osiyale revealed that retirees would receive APB ranging between 116% and 280% of their Total Annual Emolument, depending on service length. He emphasized that the payment would be made directly into retirees’ accounts at the point of exit, ensuring transparency and efficiency.

“Ogun State is proud to be the first to introduce APB, upholding the dignity and welfare of retirees while strengthening trust in the CPS,” Osiyale said. He urged the media to help enlighten the public on the government’s initiatives to improve retirees’ welfare.

Engr. Osiyale also highlighted key milestones in supporting retirees since CPS implementation:

• Payment of 100% net salary as palliative for retirees between July 2 and December 31, 2025.

• Disbursement of the 2025 Christmas bonus to retirees.

• Regular remittance of employer and employee pension contributions.

These measures, he said, underscore the administration’s commitment to ensuring that retirees’ benefits are timely, fair, and fully protected.

The Permanent Secretary of the Ministry of Information and Strategy, Mr. Waheed Adeshina, noted that the media briefing was intended to address misconceptions surrounding the CPS and APB. He disclosed that the state government has already paid over N5 billion to the PFAs for the scheme and urged the media to continue raising awareness about pension policies and programs.

“Accurate public information is key to ensuring that retirees understand their rights and entitlements under the scheme,” Adeshina said.

The briefing closed with a call for continued collaboration between government, pension administrators, and the media, emphasizing transparency, accountability, and financial security for all retirees in Ogun State.