There is a reason to smile at least of retired civil and public servants in Lagos State as the state has just announced a 33% increase in retiree pension for all public servants. This was made known by the governor of the state, Mr. Babajide Sanwo-Olu who approved the incremental adjustment under the Defined Pension Scheme (DBS).
The implementation of the New Minimum Wage Act will see a repeal of the pension law enacted by the former governor of the state, Mr. Akinwunmi Ambode. This latest development was revealed to The Nation newspaper by the Director-General, Lagos State Pension Commission (LASPEC), Mr. Babalola Obilana.
Explaining the move, the LASPEC DG said it had become necessary to repeal the former pensions law as it hindered the current administration from carrying out certain obligations in the legal sense of things. However, with the repeal, the cost of government has been reduced for the state, freeing up much-needed funds for the implementation of the New Minimum Wage Act.
On the issue of a delayed payment of pensions and all other issues affecting the payment of pensions, Mr. Obilana said the government is steadfast in ensuring that those issues become a thing of the past, stating the fact that Lagos state so far is the only state in the country that is up-to-date in terms of their compliance to pensions remittals to the Retirement Savings Account (RSAs) of pensioners under the Contributory Pension Scheme (CPS).
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On this issues of pension fund remittals, he said:
“Since the inauguration of his administration, a total number of 7,308 retirees had their Accrued Pension Rights of N29.1 billion credited into their RSAs between May 2019 and last month.
“The status of implementation of states’ report collated by the National Pension Commission affirmed that Lagos State is the only state with a valid Group Life Insurance Policy for its employees. This is evidence of the state government’s dedication to the financial security of its workers, post-service, and beyond.
“Let me also add that Lagos State Government has been consistent in her leadership role in the implementation of the CPS in line with the provisions of the Lagos State Pension Reform Law of March 19, 2007, now amended on February 22, 2019.”
The LASPEC boss also reiterated the fact that the agency has been recognized for its effort in the pension industry.
“The payment of accrued rights to retirees of the state is carried out systematically and scheduled by year of exit. The retirees are, therefore, not under any coercion to offer kickbacks to the staff of the Commission to ensure payment.
“A testament to the governor’s commitment to the welfare of pensioners is the recent honor bestowed him by the Nigerian Union of Pensioners (N.U.P) who presented the distinguished award of Excellence and Greater Commitment to Pensioners’ Welfare to the representatives of the Lagos State Government at its 11th Quadrennial National Delegates Conference in Abuja.”
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