Many Lagos public servants don’t have retirement savings accounts — PenCom DG

The Director-General of the Lagos State Pension Commission (LASPEC), Babalola Obilana, has lamented that many public servants have yet to open their Retirement Savings Accounts (RSAs).

Obilana made this disclosure on Tuesday during a sensitisation programme on the Contributory Pension Scheme (CPS) for employees of Local Government Areas, held in Ikeja, Lagos.

Over the course of three days, the sensitisation programme is expected to benefit 7,457 officers from across the 20 local councils in the five divisions of the state.

According to the DG, this oversight has serious implications for their future financial security, stating that without an RSA, their pension contributions remain in an Escrow Account, rather than being invested and managed to generate growth.

He explained that this situation not only limits the potential of their retirement savings but also complicates the pension payment process when they retire.

“I cannot stress enough the importance of opening your RSA without delay. If you have not done so already, I strongly urge you to take action today. The team at LASPEC is available to guide you through the registration process, assist with the required documentation, and provide information about the various PFAs available to you,” he told the large gathering.

Obilana went on to explain that the CPS was established with the primary goal of guaranteeing a reliable and sustainable source of income for every employee upon retirement.

He highlighted that the scheme was based on a simple principle: both employees and employers contribute a portion of the employee’s salary into a pension fund, which is then managed by a designated authority.

READ ALSO:Pensioners can now withdraw their saving – Pencom

“Over the years, the administration of the CPS in Lagos State has evolved, with several key updates aimed at improving efficiency, transparency, and accessibility. These changes reflect our ongoing commitment to safeguarding pension funds and ensuring that your benefits are both protected and accessible when you need them most.

“A significant recent development has been the strengthened collaboration between the Lagos State Pension Commission (LASPEC), the Pension Fund Administrators (PFAs), and the Annuity Service Providers (ASPs). LASPEC has worked tirelessly to streamline processes, ensuring that pension benefits are easily accessible upon retirement. This collaboration is essential to ensuring that retirement savings are properly managed and continue to grow over time,” he stated.

He urged the Pension Desk Officers and Directors of Administration and Human Resources to ensure that all employees were well-informed about the pension process and were encouraged to open their RSAs, stressing that accurate and timely communication was key to ensuring that everyone was registered and actively participating in the scheme.

Obilana stressed the importance of public servants regularly reviewing their RSA statements to ensure that contributions were being debited and remitted correctly.

Speaking at the event, the Head of Service (HOS), Bode Agoro, said the sensitization is aimed at facilitating the seamless processing of retirement benefits for public servants in the state.

Agoro, who was represented by the Permanent Secretary, Mrs. Olasunkanmi Oyegbola, praised LASPEC for its unwavering commitment to continuously guiding public servants through the often-complex retirement process, helping them navigate the transition smoothly.

Agoro said the programme was particularly significant as it allowed for the updating of public servants’ personal and pension-related information, ensuring the efficient processing of retirement benefits.