The Ogun State Government has introduced an Additional Pension Benefit (APB) to address stakeholder concerns following the full implementation of the Contributory Pension Scheme (CPS) in the state.

Approved by Governor Dapo Abiodun, the initiative was announced after consultative meetings with organised labour, the State and Local Government Pension Administration Committees, and the Commissioner for Finance and Chief Economic Adviser, Dapo Okubadejo. The CPS became fully operational in Ogun State on July 2, 2025.

The APB is a one-off payment at retirement designed to bridge gaps between the CPS and the former Defined Benefit Scheme (DBS), particularly regarding gratuity. Payments will be based on graded percentages of a retiree’s Final Total Annual Emolument (TAE), ranging from 116% to 280% depending on years of qualifying service. Retirees will receive the benefit directly at the point of exit, while balances in their Retirement Savings Accounts (RSAs) will be preserved to support monthly pensions.

The communiqué highlighted the state’s financial interventions in the pension sector:
₦26.35 billion expended to offset outstanding gratuity liabilities and commence amortisation of arrears dating back to July 2012.

₦5.89 billion remitted as arrears of CPS deductions and accrued investment returns.
₦500 million paid as death benefits into RSAs of deceased retirees.

Ongoing remittance of accrued pension rights for eligible employees.

Monthly contributions into RSAs began in July 2025, and as of January 2026, total remittances stood at ₦3.19 billion. The state government said these measures reflect its commitment to building confidence in the CPS while ensuring transparency and accountability in pension administration.