Ogun State Government Pays N6.75bn for Retirees' Benefits

The Ogun State Government has released N6.75 billion to pay gratuity and additional pension benefits to retirees in the state.

Mr Olanrewaju Saka, the Ogun State Head of Service, shared this news in a statement on Friday. He said this payment is part of the government's ongoing efforts to settle pension debts and improve the welfare of retired workers.

Saka mentioned that N2.751 billion will go to 432 beneficiaries for their gratuity. An additional N4 billion is set aside for pension benefits for eligible retirees from July 2025 to now.

He assured everyone that the government is dedicated to ensuring that workers who served the state well receive their retirement benefits. This comes despite the many demands on the state's budget.

About the Additional Pension Benefit

Saka explained the Additional Pension Benefit. This benefit helps to cover the gap between what retirees would have received under the old Defined Benefit Scheme and what they get under the Contributory Pension Scheme.

He noted that while workers under the Contributory Pension Scheme have savings in their Retirement Savings Accounts, some retirees may receive lower benefits than they would have under the previous scheme. The Additional Pension Benefit provides extra funds from the state to help eligible retirees make up for that difference.

Saka emphasized that this Additional Pension Benefit is different from the money in retirees' Retirement Savings Accounts. It will not reduce the savings they have built up in those accounts.

He said this latest release shows the government’s dedication to giving retirees better financial security and dignity. He added that the government will keep working on settling pension and gratuity debts in a fair and sustainable way.

The Head of Service promised retirees that the government will be open and engage with them about how retirement benefits are managed. He also urged current public workers to keep their pension records accurate and updated.

Saka reaffirmed that the Prince Dapo Abiodun administration is committed to creating a pension system that helps public servants feel more secure and confident as they approach retirement.