Ogun State Government has introduced an Additional Pension Benefit (APB) as part of measures to address concerns raised by stakeholders following the full implementation of the Contributory Pension Scheme (CPS) in the state.

The initiative, approved by the administration of Governor Dapo Abiodun, was announced in a communiqué issued after consultative meetings between representatives of the organised labour, members of the State and Local Government Pension Administration Committees, and the Commissioner for Finance and Chief Economic Adviser to the Governor, Dapo Okubadejo.

According to the communiqué, the APB is a one-off payment at retirement aimed at bridging gaps identified between the CPS and the former Defined Benefit Scheme (DBS), particularly regarding gratuity.

The benefit will be calculated using graded percentages of a retiree’s Final Total Annual Emolument (TAE), based on years of qualifying service. Eligible retirees will receive between 116 per cent and 280 per cent of their final yearly emolument as an additional benefit, depending on their length of service.

The payment will be made directly to retirees at the point of exit, while balances in their Retirement Savings Accounts (RSAs) will be preserved to strengthen monthly pension payments.

The communiqué highlighted the state government’s financial interventions in the pension sector, noting that N26.35 billion had been expended to offset outstanding gratuity liabilities, alongside the commencement of amortisation of accrued gratuity arrears dating back to July 2012.

It also disclosed that N5.89 billion had been remitted as arrears of CPS deductions and accrued returns on investment, while N500 million had been paid as death benefits into the RSAs of deceased retirees.

In addition, the government has commenced remittance of accrued pension rights for eligible employees.

The communiqué further recommended strengthening engagement with Pension Fund Administrators through more responsive communication channels, including toll-free lines, enhanced pre-retirement training programmes, publication of comprehensive frequently asked questions on the CPS, and periodic electronic verification exercises to maintain accurate retiree records.

Stakeholders, however, reaffirmed their commitment to ensuring that pension reforms in Ogun State balance workers’ welfare with long-term fiscal sustainability.