Lagos pays N125, 941b pension rights in nine years

Pension

Pension

The Lagos State Commissioner for Establishments, Training and Pensions, Dr. Benson Oke Akintola, has disclosed that Lagos State funding of employees’ pension rights under the Contributory Pension Scheme in a period of nine years is approximately N125, 941 billion.

Speaking during the 11th Retirement Benefit Documentation Seminar organised Lagos State Pension Commission (LASPEC), he also stated that as at November 2016, the state government has paid accrued pension rights of about N55, 941 billion to 12,426 retirees since the commencement of payments of entitlement in the Contributory Pension Scheme dispensation.

In the last sixteen months, that is August 2015 to November 2016, we have paid accrued pension rights of N21.929 billion to 5,027 retirees. We are aware of the inadequacy of the funding rate recommended in the Pension Reform Law and for the year 2016, this administration to bridge the gap, has approved a pension bailout fund of N6.5b.

In her welcome address, The Director General, (LASPEC), Mrs. Folashade Onanuga said it has become imperative for one who will enjoy life in old age to have a safety nest. If you don’t have a savings culture, start now. You need to start to treat your savings as an expense similar to paying rent. You need to start to think on alternative source of income you can be comfortable with. You need to define your needs and wants. By so doing, your terminal benefits when paid will be wisely spent.

On her part, the acting Head of Service, Mrs. Folasade Adesoye, stated the programme was designed to protect the prospective retirees. Some of the complains we get from retirees are that they want to go for annuity. We also have complains from Pension Fund Administrators that insurance companies are misleading retirees. At LASPEC what we did is to come out with a brochure on pros and cons of the two so that the retirees will be well informed.Expressing her appreciation, Mrs. Fatimat Amusa working at LA Primary School Badagry thanked the state government for organising the programme.

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