Friday, July 4, 2025
23.4 C
Lagos

PenCom to Sanwo-Olu: Implement Pension Increase for CPS Retirees

From Left: The Director General of the National Pension Commission, Ms. Omolola Oloworaran and the Lagos State Governor, Babajide Sanwo-Olu during a recent visit to the Lagos State Government House.

The National Pension Commission (PenCom) has urged the Lagos State Governor, Babajide Sanwo-Olu, to extend periodic pension increases currently enjoyed by Defined Benefit Scheme (DBS) retirees to those under the Contributory Pension Scheme (CPS) to boost their monthly pensions.

The Director General of PenCom, Ms. Omolola Oloworaran, made the request during a courtesy visit to Governor Sanwo-Olu at the Lagos State Government House on 7 May 2025.

The visit was to present the report of PenCom’s 2024 routine inspection of the Lagos State Pension Commission (LASPEC) and to thank the Governor for confirming his participation as Special Guest at the Pension Industry Leadership Retreat starting 8 May 2025.

PenCom DG pointed out that currently, only DBS retirees are paid pension increases in Lagos State, leaving out their counterparts under the CPS.  She made a case for the prioritisation of retirees under the CPS given the contributory nature of the scheme.

Ms. Oloworaran lauded Lagos State as a leading model in the Federation for its effective implementation of the CPS. She highlighted key achievements, including consistent deduction and remittance of employee contributions to their Retirement Savings Accounts (RSAs), full settlement of all backlog of accrued pension rights, the existence of a valid Group Life Insurance Policy for most public service employees, and the deployment of advanced ICT systems to enhance pension administration in Lagos State.

Despite this progress, PenCom DG proposed a partnership with Lagos State to make the Pension Clearance Certificate (PCC) a mandatory requirement for companies seeking Lagos State Government contracts and services, as practiced at the federal level.

In addition, the DG recommended transitioning unremitted contributions currently held in commercial banks’ escrow accounts into Transitional Contribution Fund (TCF) accounts managed by Pension Fund Administrators (PFAs), to optimise investment returns.

She also advised Lagos State to implement an Irrevocable Standing Payment Order (ISPO) for pension contributions to be automatically deducted and remitted from Federation Account Allocation Committee (FAAC) allocations. This is to protect pension remittances from potential administrative delays.

While commending the State for its N600 million bailout for outstanding accrued rights of Lagos State University of Education (LASUED) retirees, PenCom DG appealed for further intervention to address unpaid benefits from 2023 and 2024.

The DG also urged the Governor to consider implementing the Minimum Pension Guarantee (MPG), similar to what obtains at the mandatory CPS level.

She informed the Governor that the Federal Government had started its MPG contributions and included it in the recent approval to issue the N758 billion bond to clear pension liabilities.

In response, Governor Sanwo-Olu reaffirmed the State’s commitment to pension reforms and praised the collaborative relationship with PenCom under the current leadership.

The Governor expressed support for implementing pension increases for CPS retirees.

He expressed the importance of workers’ welfare in his administration’s agenda.

While he was optimistic about the sustainability of reforms by future administrations, he noted that an ISPO may not be necessary at this time.

The Governor also called on PenCom to support Lagos State’s developmental initiatives by encouraging pension fund investments in government-issued bonds.

 

 

spot_img
spot_img
spot_img

Hot this week

NAICOM Hands over New Licences to SanlamAllianz Life, General Insurance

The National Insurance Commission (NAICOM) today handed over new...

Access Bank Highlights Leadership at Climate Governance Initiative Launch

Access Bank Plc has once again demonstrated its leadership...

Fidelity Bank Extends Relief Efforts to Eti-Osa Community with Food Bank Initiative

Henry Asiegbu, Divisional Head, Operations, Fidelity Bank Plc (Left);...

Stanbic IBTC Bank Wins GTR Award for Best Trade Finance Bank in West Africa

Stanbic IBTC Bank has been honoured with the Best...

Topics

Spectrum Auction Will Democratise Broadband for Nigerians – Danbatta

L-R: Managing Director/Chief Operating Officer, ThisDay Newspapers, Eniola Bello; President, African Public Relations...

Banks Have Low Expertise in Oil & Gas Business

Nigerian banks have limited k n o w l e d g e and understanding of oil and gas business, thus making it difficult for financial institutions in the country to tailor the right financing model for operators in that sector of the economy. That was a crucial point from the Nigeria Oil & Gas (NOG) 2015 communiqué issued over the weekend According to the communiqué, the restricted lending capacity of indigenous banks and rate disadvantage cannot compare to various money lenders elsewhere while poor credit rating also affect money lenders’ ability to support indigenous companies operating in oil and gas business.

The RSA Transfer Window: An Assessment

It was a day long awaited, when the National...

CII UK Visits Sovereign Trust Insurance in Lagos

L-R: Tajudeen Rufai, Consultant, STI Plc, Emmanuel Anikibe, Executive...

The NAICOM 5-Point Plan to Drive Insurance Growth in Nigeria

(4th Left): Mr. O. S. Thomas, Commissioner for Insurance/CEO,...

‘Get Your Remittances in Dollars’–Ecobank

In a reaction to the recent announcement by the...

Sovereign Trust Insurance Paid N2.7bn Claims in 2019

  Mr. Olaotan Soyinka Managing Director/CEO Sovereign Trust Insurance Plc  Sovereign Trust Insurance...

Great Nigeria Insurance Deepens Market with Retail Products, Services

  One of the most efficient underwriting firms in the...
spot_img

Related Articles

Popular Categories

spot_imgspot_img