The government of Ogun State has unveiled an Additional Pension Benefit (APB) as part of reforms aimed at addressing concerns raised by labour and pension stakeholders following the full implementation of the Contributory Pension Scheme (CPS). The initiative, approved by the administration of Governor Dapo Abiodun, seeks to bridge gaps between the CPS and the former Defined Benefit Scheme, particularly in relation to gratuity entitlements.

Under the new arrangement, retirees will receive a one-off APB payment calculated as a percentage of their Final Total Annual Emolument, scaled according to years of service. Depending on tenure, eligible retirees will receive between 116 per cent and 280 per cent of their final yearly emolument as an additional benefit at the point of exit. The state government emphasised that balances in Retirement Savings Accounts will remain intact to support sustainable monthly pension payouts.

Officials disclosed that the pension reform drive has already seen significant fiscal interventions, including N26.35 billion to clear outstanding gratuity liabilities and the commencement of payments toward historical arrears dating back to 2012. Additional remittances include N5.89 billion for CPS deductions and investment returns, as well as N500 million paid into the accounts of deceased retirees as death benefits.

The communiqué announcing the reforms also recommended stronger engagement between pension administrators and fund managers through improved communication, toll-free support channels, pre-retirement training, and periodic verification exercises. These measures, according to stakeholders, are intended to enhance transparency and maintain accurate retiree records while balancing fiscal responsibility with workers’ welfare.

State officials framed the APB as a pragmatic solution to concerns raised by retirees and labour representatives, stressing that pension sustainability remains central to governance. The reform is expected to provide immediate relief for retirees while preserving the long-term viability of pension obligations in the state.