Lagos pension fund hits N26 bn – Fashola

LAGOS State Contributory Pension Scheme, LSCPS, fund has hit over N26 billion, even as the state presented a total of N5,824,325,892.43 as retirement bonds for 1,121 pensioners who retired from the state service. The N26, 292, 481, 183 is the total contribution from the state government and its employees under the contributory pension scheme.

Presenting the 4th batch of retirement bonds worth N2, 287,787,241.36 to 471 retirees, Governor Babatunde Fashola said the remitted sum represented the retirees’ accrued pension

The governor explained that the N26, 292, 481, 183 was the total contribution from the state government and its employees under the contributory pension scheme by September 2011.

On the fourth presentation of bond certificate, he said “in this batch, a total sum of N2, 287,787, 241. 36 distributed as bond certificate to 471 retirees from the state and local government public service. In total, the state government has therefore, redeemed retirement bond of N5, 824, 325892.42k into the retirement savings account of 1,121 retirees since the commencement of the payment in March 2010.”

Fashola recalled that the government began the presentation of bond certificate in March last year with a sum of N412, 878, 986. 80k into retirement savings account of 105 retirees.

Governor Fashola of Lagos, presenting Retirement Bond Certificate to a retiree.

This was followed by N887, 362, 600.56k to second batch of 217 retirees and N2, 198, 568, 804, 94k to the third batch of retirees in the pension scheme.

Personnel and recurrent costs

“But it has increased the outgoings for personnel and recurrent cost of the state,” he said.

Fashola commended the Lagos State Pension Commission for its contribution, through efficient co-ordination of pension matters, to the success of the contributory pension fund in the state.

The governor noted that the commission‘s efforts had made life less stressful for pensioners as the endless queues to get their retirement benefits had been stopped and the process of accessing benefits had been eased by the commission.

On the delay presenting retirement bond certificate to some retirees, the governor blamed the delay on the implementation of new N18, 000 minimum wage.

He said: “Let me be honest with you, the third and fourth presentation of retirement bond certificate were more difficult for the state government than the first and second presentation. The two presentations (the third and the fourth which is today) were difficult because when the debate for new minimum wage started, everybody wanted a minimum wage of N18, 000. But the debaters and agitators overlooked the pension liabilities of the state governments.

“They overlooked the fact that Nigeria had adopted a compulsory contributory pension scheme that imposes an obligation on government to contribute 7.5 percent of the employee salary into a retirement savings account.

If wages go up, what it simply meant was that the 7.5 percent by the government will increase in quantum. So it is not just the question of raising wages and paying it alone it was the additional liability of the value of that 7.5 percent. Those were the challenges that we dealt with.

What this commitment has meant to us is that every month, our outgoing wages, salaries, pension contribution and subventions have increased by an extra N2.4 billion per month and the revenue we receive per month has not increased.”

The governor assured the pensioners of priority attention, saying “We have put the pensioners first in spite of other pressing needs which demand our utmost attention.”

While commending the retirees for their contribution to the development of the state, the governor urged them to advise those still in service to rededicate themselves to more productive activities, stressing that “this is the only way the state government and the workers can have a win, win situation at all time.”

“What is needed today is increasing commitment to productive activities. This is the only way we can increase revenue and income and further keep the machinery of the state government going.

This is the only way we can continue to present retirement bond certificate to retirees from the state public service. I rejoice with all the retiree here today because you are about to join the league of financially empowered retirees.”

One of the beneficiaries Mr. Samuel Olukayode who spoke with Pension and You, commended the government for keeping to its promise, saying the process had been so hitch free as well as stress free.

He urged other state governments in the country to emulate Lagos state by being alive to the welfare of retired civil servants who gave their prime years to the service of the nation.