Pension Commission names Lagos State leader in pension payment
As State Pays N40b To 10,380 Retirees In 2 Years
Lagos State has emerged as the top performer in pension payments among other quality indices of the Contributory Pension Scheme (CPS) for the first quarter of 2022.
As listed by the National Pension Commission (NPC) on ‘Status of implementation of the CPS by states’, Lagos State tops five other states in the payment of accrued rights of retirees as well regular remittance of the monthly pensions contributions under the CPS.
Lagos State enacted a Pension Law for CPS called the Lagos State Pension Reform Act 2007. It also set up a pension commission called the Lagos State Pension Commission.
The state government also procured Group Life Assurance for all its employees in line with the CPS Pension Reform Act. This ensures that 300 per cent of employees’ annual emolument is paid to beneficiaries in the event of the untimely death of any employee.
The Babajide Sanwo-Olu-led administration further created a Retirement Benefit Bond Redemption Fund Account (RBBRFA), which caters to the accrued pension rights of employees under the Defined Benefit Scheme.
In line with its resolve on the speedy resolution of all pension arrears in the state, the Lagos State Pension Commission (LASPEC) pays not less than an N1billion monthly to the Retirement Savings Account (RSA) of its retirees.
The CPS became operational in the Lagos State Public Service on April 1, 2007. Under the Scheme, monthly contributions by employees and the employer are promptly paid to the employees (RSA) and the administration has undeniably continued to clear off the backlog of outstanding retirement bonds for thousands of retirees.
Since January 2020, Lagos State increased and commenced the implementation of enhanced pension contributions to RSAs increasing from 7.5 per cent of the monthly basic, housing and transport allowances of employees and 7.5 per cent of employer’s contribution to 8 per cent of employees’ contribution and 10 percent of employer’s contribution.
With this mileage by the state government, among many other initiatives, the Director-General of LASPEC, Mr Babalola Obilana, confirmed that the state had been consistent with the implementation of the CPS in line with the provisions of the Lagos State Pension Reform Law of March 19, 2007, now amended on December 2021.
This is in line with the state government’s promise to prioritise the welfare and wellbeing of its pensioners in the public service.
According to the Commissioner for Establishments, Training and Pensions, Mrs Ajibola Ponnle, Lagos State is almost set to provide free health insurance and transportation to its pensioners. This is currently being finalised and would be launched shortly.