The National Pension Commission has begun discussions with the Lagos State Government and the Lagos State Pension Commission over the implementation of pension adjustments and wage awards for retirees under the Contributory Pension Scheme.
The development follows protests by retirees in Lagos, who demanded the payment of approved consequential adjustments, wage awards and outstanding pension benefits.
PenCom, in a statement on Monday, said it recognised the importance of ensuring that retirees receive their legitimate entitlements, while acknowledging the hardship caused by delays in implementing approved adjustments.
The regulator said it had engaged the Lagos State Government and LASPEC on issues surrounding pension administration under the CPS, including extending appropriate pension adjustments to eligible retirees.
According to PenCom, implementing pension enhancements under the CPS requires several processes, including determining beneficiaries, calculating actuarial liabilities, securing the required funding and issuing operational guidelines to Pension Fund Administrators.
The commission said it was working with the Lagos State Government, LASPEC, PFAs and pensioners’ representatives to achieve a transparent and sustainable resolution.
Lagos has one of the stronger compliance records under the CPS, with LASPEC reporting that the state has paid N168.2 billion in accrued rights to more than 48,000 retirees since the scheme began in 2007.
Under Governor Babajide Sanwo-Olu, the state has reportedly disbursed more than N92 billion in accrued rights to over 25,000 retirees between May 2019 and mid-2026.
This included a N5 billion payment made in July 2024 to address outstanding liabilities.
Accrued rights are benefits owed to workers who were already in service before Lagos transitioned to the CPS in 2007.
They cover pension and gratuity obligations accumulated under the previous pension system.
The current dispute, however, centres largely on the extension of recent wage awards and consequential pension adjustments to CPS retirees.
Unlike the old pension system, where government directly paid pension increases, adjustments under the CPS require actuarial calculations and additional funding into retirees’ Retirement Savings Accounts.
PenCom said it remains committed to enforcing the provisions of the Pension Reform Act 2014 and ensuring that pensioners’ legitimate entitlements are properly administered.
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