Ogun retirees to get up to 280% benefits as Abiodun unveils new pension boost

The Ogun State Government has announced that retirees in its civil and public service will receive significantly higher benefits under the Contributory Pension Scheme (CPS), following the introduction of the Additional Pension Benefit (APB) initiative, which offers between 116 per cent and 280 per cent of Total Annual Emoluments (TAE).

Governor Dapo Abiodun disclosed this on Tuesday during the official presentation of cheques to retirees at the Oba’s Complex, stating that between 70 and 80 per cent of retiring workers would benefit more under the new arrangement than under the previous gratuity system.

Represented by the Secretary to the State Government, Tokunbo Talabi, the governor explained that while the Federal Government provides gratuity equivalent to 100 per cent of a retiree’s final annual salary, Ogun State has raised the minimum to 116 per cent, with a maximum of 280 per cent depending on years of service.

He noted that the initiative ensures retirees receive improved and timely benefits, eliminating the delays previously associated with gratuity payments and surpassing the federal benchmark.

Abiodun said his administration inherited substantial pension liabilities but has taken steps to clear the backlog and ensure retirees benefit from returns on delayed remittances, thereby increasing the value of their entitlements.

Under the APB framework, retirees receive a one-off lump sum as additional benefit, while their full pension contributions remain with Pension Fund Administrators, leading to stronger monthly pension payments.

Officials, including Head of Service Kehinde Onasanya and Finance Commissioner Dapo Okubadejo, described the initiative as a major reform that addresses past funding challenges and bridges gaps between the old Defined Benefit Scheme and the CPS.

Labour leaders and pension stakeholders also commended the scheme as innovative and sustainable, as the government confirmed that over ₦26.35 billion has been paid to offset gratuity liabilities, alongside other interventions aimed at improving retirees’ welfare and ensuring long-term pension stability.