Ogun State Governor Dapo Abiodun says retirees in the state’s civil and public service will earn significantly higher benefits under the Contributory Pension Scheme (CPS), following the introduction of the Additional Pension Benefit (APB) initiative.

Mr Abiodun disclosed this on Tuesday in Abeokuta, the state capital, during the official presentation of cheques to retirees.

The governor, represented by the Secretary to the State Government, Tokunbo Talabi, noted that the initiative offers between 116 per cent and 280 per cent of Total Annual Emoluments (TAE).

The governor said that between 70 and 80 per cent of retiring workers would receive higher benefits under the new arrangement than what was previously obtainable as gratuity.

He explained that while the federal government provides a gratuity equivalent to 100 per cent of a retiree’s final annual salary, the state has exceeded this benchmark by approving a minimum of 116 per cent.

According to him, it has risen to as high as 280 per cent, depending on years of service.

“What this means is that, unlike in the past when gratuity payments were delayed, retirees will now receive improved and timely benefits.

“Our minimum is 116 per cent, going up to 280 per cent, which is significantly higher than the 100 per cent benchmark,” he said.

Mr Abiodun noted that his administration inherited substantial pension and gratuity liabilities but had since taken deliberate steps to address them comprehensively.

He added that beyond settling outstanding obligations, the government has ensured that retirees receive returns on delayed remittances, thereby enhancing the value of their entitlements.

Mr Abiodun further explained that under the APB framework, retirees now receive a one-off lump sum as an additional pension benefit, while their full pension contributions remain intact with Pension Fund Administrators (PFAs).

The governor reaffirmed that despite competing fiscal demands, his administration has prioritised retirees’ welfare, describing their well-being as a moral obligation.

Earlier, the head of service, Kehinde Onasanya, described the initiative as a “game changer” that bridges the gap between the old Defined Benefit Scheme and the CPS.

“It ensures retirees receive immediate financial support upon exit from service,” he said.

Labour leaders, including Ahmed Benco of the Nigeria Labour Congress and Akeem Lasisi of the Trade Union Congress, commended the initiative, describing it as the first of its kind in the country and a model for other states.

Similarly, the chairman of the Nigeria Union of Pensioners, Ogun chapter, Waheed Oloyede, lauded the programme as a major step toward improving retirees’ welfare, while calling for transparency in its implementation.

Speaking on behalf of beneficiaries, Suraju Awoyemi expressed deep gratitude to the government for its commitment to retirees’ welfare.

(NAN)