The Ogun State Government has announced the release of N6.75 billion for the payment of gratuity and extra pension benefits to retirees to improve the welfare of retired workers in the state.
The Head of Service, Olanrewaju Saka, in a statement on Friday, explained that N2.751 billion was for gratuity to 432 beneficiaries, while the remaining N4 billion was for the Additional Pension Benefits to retirees from July 2025 to date.
Mr Saka said the introduction of the Additional Pension Benefit was aimed at cushioning “the difference between the pension benefits retirees would have received under the old Defined Benefit Scheme and what they are entitled to under the Contributory Pension Scheme.”
Stating that workers under the CPS had retirement savings in their Retirement Savings Accounts, Mr Saka said some retirees could receive lower benefits than they would have been entitled to under the former scheme, adding that the APB would however, provide them with an additional payment from the state government to bridge part of the gap.
“The APB is separate from the funds in retirees’ Retirement Savings Accounts and does not reduce the savings accumulated in those accounts,” he noted.
Mr Saka said the move expressed the state government’s resolve to providing greater financial security and dignity for retirees and its commitment to keep paying outstanding pension and gratuity obligations in a systematic and sustainable manner.
Reiterating the Dapo Abiodun government’s commitment to ensuring that workers who served the state meritoriously received their retirement benefits despite competing demands on the state’s resources, Mr Saka advised serving public officers to make sure that their pension records and documentation were accurate and up to date.