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Minimum wage: Lagos State Increases Pension By 33%

Written by on May 19, 2021

Lagos State Governor, Babajide Sanwo-Olu has approved an increase of 33 per cent adjustments in the pensions of retirees under the Defined Pension Scheme (DBS) arising from the implementation of the New Minimum Wage Act.

The governor has also announced plans to repeal the former governors’ pension law while presenting the 2021 Appropriation Bill to the state House of Assembly last November.

The Director-General, Lagos State Pension Commission (LASPEC), Mr. Babalola Obilana made this known in an interview with The Nation.

Obilana said the governor said the aim of repealing the law was to free the state government of the legal obligations and reduce the cost of governance.

The LASPEC DG further said the  government is committed to the speedy resolution of pension issues.

He maintained that Lagos is the only state in Nigeria with up-to-date pension contributions remitted to the Retirement Savings Account (RSAs) of pensioners under the Contributory Pension Scheme (CPS).

He said LASPEC has been paying a minimum of N1 billion monthly as Accrued Pension Rights to RSAs of pensioners.

He said: “Since the inauguration of his administration, a total number of 7,308 retirees had their Accrued Pension Rights of N29.1 billion credited into their RSAs between May 2019 and last month.

“The status of implementation of states’ report collated by the National Pension Commission affirmed that Lagos State is the only state with a valid Group Life Insurance Policy for its employees.This is the evidence of the state government’s dedication to the financial security of its workers, post service and beyond.

“Let me also add that Lagos State Government has been consistent in her leadership role in the implementation of the CPS in line with the provisions of the Lagos State Pension Reform Law of March 19, 2007 now amended on February 22, 2019.”

Obilana noted that LASPEC has been the trail blazer on pension matters in the country, having won awards as the most compliant state in the dispensation on several occasions. “The payment of accrued rights to retirees of the state is carried out systematically and scheduled by year of exit. The retirees are, therefore, not under any coercion to offer kickbacks to staff of the Commission to ensure payment.

“A testament to the governor’s commitment to the welfare of pensioners is the recent honour bestowed him by the Nigerian Union of Pensioners (N.U.P) who presented the distinguished award of “Excellence and Greater Commitment to Pensioners’ Welfare” to the representatives of the Lagos State Government at its 11th Quadrennial National Delegates Conference in Abuja,” he added.

Source TheNationOnline

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