The Ogun State Government has announced that retirees in its civil and public service will earn significantly higher benefits under the Contributory Pension Scheme (CPS), following the introduction of the Additional Pension Benefit (APB) initiative, which offers between 116 per cent and 280 per cent of Total Annual Emoluments (TAE).

Governor Dapo Abiodun disclosed this on Tuesday during the official presentation of cheques to retirees at the Oba’s Complex in Abeokuta.
Represented by the Secretary to the State Government, Tokunbo Talabi, the governor said between 70 and 80 per cent of retiring workers would receive higher benefits under the new arrangement than what was previously obtainable as gratuity.

He explained that while the Federal Government provides gratuity equivalent to 100 per cent of a retiree’s final annual salary, Ogun State has exceeded this benchmark by approving a minimum of 116 per cent, rising to as high as 280 per cent, 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 per cent, going up to 280 per cent, which is significantly higher than the 100 per cent benchmark,” he said.

Governor Abiodun noted that his administration inherited substantial pension and gratuity liabilities but has since taken deliberate steps to address them comprehensively.

According to him, beyond settling outstanding obligations, the government also ensured that retirees received returns on delayed remittances, thereby enhancing the value of their entitlements.

He further explained that 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), resulting in improved monthly pension payments.

“Previously, about 25 per cent 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,” he added.

The governor reaffirmed that despite competing fiscal demands, his administration has prioritised retirees’ welfare, describing their well-being as a moral obligation.

In his remarks, the Head of Service, Kehinde Onasanya, described the initiative as a “game changer” that bridges the gap between the old Defined Benefit Scheme and the CPS, ensuring retirees receive immediate financial support upon exit from service.