Lagos Govt Remits N78.6bn Into Workers’ Retirement Account

The Lagos State government said it has remitted N78.6 billion monthly contributions into its workers’ Retirement Savings Accounts with 10 Pension Fund Administrators, PFAs, as at March, 2017.

Governor Akinwunmi Ambode disclosed this on Friday at the presentation of retirement benefit bond certificates to the 38th Batch of Retirees from the state public service in Lagos.

Represented by the commissioner, Lagos State Ministry of Establishments, Training and Pensions, Akintola Benson, the governor said his administration was committed to meeting its pension funding obligations.

Benson said a total of 311 retirees who received bond certificates would have their accounts credited with pension rights of about N1.6 billion.

These consist of gratuity and pension benefits under the defined benefit scheme for employees who transited into the defined contributory scheme.

Governor Ambode said the state was also consistent in setting aside funds for the payment of accrued rights as provided for in the Pension Reform Law.

He said about N61 billion of accrued pension rights has been paid since the commencement of the retirement benefit bond certificate presentations in 2010.

The retirement benefit bond certificates presentation to retirees under the Contributory Pension Scheme was created under Section 3 of the Lagos State Contributory Pension Scheme law of 2007.

“The passage of the law was in response to the new model and standards of pension administration formulated under the federal Pension Reform Act 2004,” he said.

“It is a positive history that the Lagos State Government has consistently won the National Pension Commission’s award for the Best Pensions Compliant State in the Federation. We aim to maintain this rating by continuing and improving on the timely payment of all pensions and other applicable benefits to our retiring workers upon disengagement from service,” he added.

Assuring that the state government through LASPEC would continue to ensure that public service retirees not only got their due, the governor said they would also continue to receive, through other agencies and programmes, additional support and assistance that would add value to their lives in retirement.

He urged the retirees who have all served in various capacities and sectors to make the right choices that would enable them attain financial comfort during retirement.

The LASPEC Director-General, Folashade Onanuga said the state government paid N27.41 billion accrued pension rights into the Retirement Saving Accounts (RSAs) of 6,267 retirees.

“In a period of less than 2 years, from August 2015 to April, 2017, LASPEC has paid accrued pension rights in the sum of N27, 409.560 billion into the RSA of 6,267 retirees. Accrued pension rights previously paid before the current administration amounts to N33, 645 billion to 7,409 retirees.

“In essence, since the commencement of the Retirement Benefit Bond Certificate Presentations in 2010, on over 13,676 retirees withdrawn staff, the state government has paid accrued pension rights of about N61.4 billion,” she said.

In addition, she said the state government through the commission paid to named beneficiaries of deceased employees, insurance benefit of N 12.5 million for this month of April, bringing the total of death benefits paid to N182.5 million from August 2015 to date.