The Ogun State government has begun issuing additional pension benefits cheques to over 200 retirees in the local government and State Universal Basic Education Board (SUBEB) sectors under the Contributory Pension Scheme.

The permanent secretary of the Bureau of Local Government Pensions, Olufisan Osiyale, disclosed this during the presentation of cheques to beneficiaries in Abeokuta, the state capital, on Thursday.

Mr Osiyale said the Additional Pension Benefit (APB) was introduced and approved by Governor Dapo Abiodun to improve the welfare of pensioners and reward their years of service.

He explained that the initiative was designed to address disparities between retirees under the Defined Benefit Scheme (DBS) and those under the CPS, noting that it was the first of its kind in Nigeria.

According to him, the APB is a one-off payment made directly to eligible retirees at the point of exit from service and will run for 10 years.

He added that beneficiaries under the CPS would receive between 116 per cent and 280 per cent of their annual total emolument, depending on their years of service.

Mr Osiyale said the scheme would help stabilise retirees’ monthly pensions and reduce financial challenges.

Also speaking were Rotimiolu Akinlesi, permanent secretary, Ministry of Local Government and Chieftaincy Affairs, and his counterpart at the Local Government Service Commission, Olanike Ogunbona, who described the initiative as commendable.

They urged beneficiaries to make prudent use of the funds by investing in low-risk ventures.

In his remarks, Fatai Akiode, the vice president of the Nigeria Union of Local Government Employees (NULGE) in the state, commended the governor for the initiative.

He called for sustained remittance of pension contributions to pension fund administrators.

Also, the state chairman of the Local Government Pensioners Association of Nigeria, Benedict Ademoye, described the move as a welcome development.

Responding on behalf of beneficiaries, Ajayi Amos and Dorcas Agboola expressed appreciation to the state government, noting that the payment showed their service had not been in vain.

(NAN)