Ogun State Government has said 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).

The state’s governor, Dapo Abiodun, disclosed this, yesterday, during the official presentation of cheques to retirees at the Oba’s Complex.

The governor, represented by the Secretary to the State Government (SSG), Tokunbo Talabi, 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 yearly salary, the 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.

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

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

He further said that under the APB framework, retirees now receive a one-off lump sum as additional pension benefit, while their full pension contributions remain intact with Pension Fund Administrators (PFAs), resulting in improved monthly pension payments.

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

Also speaking, the Chief Economic Adviser and Commissioner for Finance, Dapo Okubadejo, traced the evolution of pension administration in the state, noting that the CPS, introduced in 2008, faced funding challenges that eroded public trust.

However, labour leaders, including Ahmed Benco of the Nigeria Labour Congress (NLC) and Akeem Lasisi of the Trade Union Congress (TUC), commended the initiative, describing it as the first of its kind in the country and a model for other states.

Similarly, Chairman of the Nigeria Union of Pensioners (NUP), Waheed Oloyede, lauded the programme as a major step toward improving retirees’ welfare, while calling for transparency in its implementation.

Representatives of Pension Fund Administrators and the National Pension Commission also described the scheme as a bold and innovative reform that strengthens retirement security.