Retirees under the umbrella of the Voice of the Association of New Ogun Civil and Public Service Retirees (ANOCPSR) have appealed to the Ogun State Government to suspend the planned implementation of the Contributory Pension Scheme (CPS) for workers who retired from July 2, 2025 to date.
In a statement, the association said it had carefully reviewed the government’s recent press release proposing relief measures for affected retirees but found significant disparities between the old Defined Benefit Scheme (DBS) and the newly introduced Contributory Pension Scheme alongside the proposed Additional Pension Benefit (CPS-APB).
According to the group, under the former Defined Benefit Scheme, retirees were entitled to 80 per cent of their monthly gross salary as pension, in addition to a gratuity amounting to 300 per cent of their annual emolument. However, under the proposed CPS-APB arrangement, the compensatory allowance is projected to range between 116 per cent and 280 per cent of annual emolument, while retirees would only have access to 25 per cent of the balance in their Retirement Savings Accounts (RSAs).
The association described the new arrangement as “grossly inadequate” for workers who served the state meritoriously for up to 35 years, questioning why certain categories of workers were exempted from the scheme if it was considered beneficial.
ANOCPSR also raised concerns about the historical implementation of the CPS in the state, alleging that successive administrations failed to treat the policy with due seriousness. The retirees claimed that accrued rights were not paid into workers’ RSAs during the scheme’s test run in January 2008, and that monthly pension deductions, along with the government’s counterpart contributions, were not consistently remitted as required by law.
The group further alleged that workers were not allowed to freely choose their Pension Fund Administrators (PFAs), contrary to the provisions of the CPS law. It claimed that pension deductions were not remitted for as long as 17 years and that there was no evidence of sanctions, including the statutory two per cent penalty for delayed remittances, being enforced.
The retirees also accused the present administration of failing to remit workers’ deductions for nearly seven years, only beginning compliance after announcing that the CPS would take effect from July 2, 2025. They argued that remittances made after retirement do not meet the intent of the CPS framework and described the current RSA balances as inadequate to support full implementation of the scheme.
ANOCPSR expressed skepticism about the proposed Additional Pension Benefit, noting that it remains a proposal that has yet to be submitted to the National Pension Commission (PENCOM) for approval. The association warned that proceeding with implementation without full legal and regulatory compliance could expose the state to avoidable legal disputes and embarrassment.
The retirees called on the Executive Governor of Ogun State, Dapo Abiodun, to reconsider the decision and maintain the status quo by allowing affected retirees to continue under the Defined Benefit Scheme, which they said better safeguards their welfare.
While commending the governor for his efforts in paying outstanding gratuities inherited from past administrations, the association urged him to protect his reputation by postponing the CPS-APB implementation until all legal and administrative requirements have been fully met.
The statement concluded with an appeal for dialogue and a lawful resolution that would uphold workers’ rights and ensure fairness to retirees who have dedicated decades of service to the state.
