BY NKECHI NAECHE- ESEZOBOR — Despite the covid-19 pandemic, the Lagos State Governor, Mr Babajide Sanwo-olu said in the month of April, 2020, the state approved the release of the sum of N1.030 billion Naira for the payment of accrued pension rights of 213 Public Service retirees.
This was disclosed by the Director-General, Lagos State PensionCommission (LASPEC), Mrs. Folashade Onanuga during the distribution of palliative packages to retirees in different locations in the State. According to her, the Lagos State Pension Commission has released the funds to the Pension Fund Administrators who have credited the Retirement Savings Accounts of the beneficiaries.
To ensure the safety of all beneficiaries, the Retirement Bond presentation ceremony stands cancelled and all Retirement Bond Certificates for April have been released to the Pension Fund Administrators who will invite beneficiaries for collection and grant access to their RSA for the computation of their lump sum and monthly pension. Mrs. Onanuga urged retirees to observe all precautionary measures as advised by the State Government and the Nigeria Centre for Disease Control (NCDC) to stay free of COVID-19
She also stated that the Government has increased the funding rate of accrued pension rights from 5% to 10% of the total emoluments if active workers. This increase took effect from February 2020. This move was taken to clear the backlog of outstanding pension obligations. She advised the retirees on the waiting list to be patient as very soon they will be able to have access to their Retirement Savings Account.
For active workers, she confirmed that the new pension contribution rates of 10pcent by the State Government commenced in February 2020. Employee contribution rate is now 8pcent . This is to enhance the terminal entitlements of the Public Service retirees.
