THE OYO State Government has fixed July 1 for the commencement of Contributory Pension Scheme (CPS) for workers employed into the state civil/public service from Jan. 1, 2025.
Chairman of the State Post Service Board, Mr Tunji Adekunle, disclosed this at a stakeholders’ engagement with Pension Fund Administrators (PFAs) held in Ibadan on Thursday.
Adekunle said that all necessary arrangements had been concluded for a seamless rollout.
He described the development as a major step toward securing the future of workers, noting that the scheme would ensure a more reliable and sustainable pension system for civil/public servants in the state.
Adekunle explained that the state government would contribute 12 per cent while employees would contribute eight per cent of their monthly earnings, indicating the government’s commitment to workers’ welfare.
According to him, CPS is designed to strengthen, and not diminish the workers’ welfare, stressing that the scheme would provide individual Retirement Savings Accounts (RSAs).
“It will also ensure transparency and guarantee portability of benefits across employment.
“This reform is about the future of our workforce. It ensures that every worker can retire with dignity and financial security,” he said.
While acknowledging the concerns raised by some newly-recruited workers, Adekunle, however, explained that implementation timelines, based on employment dates, were standard in public sector reforms and not intended to put any group in disadvantage.
In his remarks, the Permanent Secretary, Post Service Board, Mr Victor Adesola, stated that the new scheme would address long-standing challenges associated with the Defined Benefits Scheme, including delays in the payment of entitlements.
Adesola said the CPS would introduce a more reliable, transparent and sustainable system that would give workers confidence in their retirement planning.
Also speaking, the Permanent Secretary, Ministry of Establishments and Training, Alhaji H.A. Bello, said the reform followed extensive consultations among key stakeholders, including relevant ministries, pension administrators and regulatory bodies.
Bello added that the scheme would run alongside the existing Defined Benefits Scheme, while gradually building a more sustainable pension structure for the state.
The News Agency of Nigeria (NAN) reports that the meeting brought together officials from ministries, departments and agencies as well as representatives of labour unions and PFAs to finalise operational strategies, ahead of the scheme’s take-off. (NAN)
