Pensions Commission names Lagos State leader in pension payments — Business — The Guardian Nigeria News – Nigeria and World News
While State pays N40b to 10,380 pensioners in 2 years
Lagos State has emerged as the top performer in pension payments among other Contributory Pension Scheme (CPS) Quality Indexes for the first quarter of 2022.
As reported by the National Pensions Commission (NPC) on “states’ implementation status of the CPS”, Lagos State leads five other states in payment of accrued benefits to pensioners as well as the regular payment of monthly pension contributions under the CPS.
Lagos State has enacted a pension law for the CPS called the Lagos State Pension Reform Act 2007. It has also set up a pension commission called the Lagos State Pension Commission.
The state government has also purchased group life insurance for all its employees in accordance with the CPS Pension Reform Act. This ensures that 300 percent of the annual employee emolument is paid to beneficiaries in the event of the premature death of an employee.
The administration headed by Babajide Sanwo-Olu has further established a Retirement Benefit Obligation Reimbursement Fund (RBBRFA) account, which covers employees’ accrued pension rights under the defined benefit scheme.
In line with its determination to promptly resolve all pension arrears in the state, the Lagos State Pensions Commission (LASPEC) pays no less than N1 billion per month to the Retirement Savings Account (RSA ) of its pensioners.
The CPS became operational in the Lagos State Civil Service on April 1, 2007. Under the scheme, employee and employer monthly contributions are promptly paid to employees (RSA) and the administration has undeniably continued to clear the backlog of pension arrears. obligations for thousands of retirees.
Since January 2020, Lagos State has increased and commenced implementation of enhanced RSA pension contributions from 7.5% of basic, housing and employee transport monthly allowances and 7.5% from the employer’s contribution to 8% of the employee’s contribution and 10% of the employer’s contribution.
With this mileage by the State Government, among many other initiatives, the Director General of LASPEC, Mr. Babalola Obilana, confirmed that the State has been consistent with the implementation of the CPS in accordance with the provisions of the law pension reform in Lagos State. March 19, 2007, now amended December 2021.
This is in line with the state government’s promise to prioritize the welfare and welfare of its pensioners in the public service.
According to the Commissioner for Settlements, Training and Pensions, Ms. Ajibola Ponnle, Lagos State is set to provide free health insurance and transport to its pensioners. This is being finalized and will be launched soon.