The Oyo State Government has defended its decision to commence the Contributory Pension Scheme with workers recruited in 2025, saying the move is aimed at guaranteeing a sustainable and predictable retirement system for civil servants.\n<\/p>\n
The state Commissioner for Information, Dotun Oyelade, addressed concerns raised by workers over the implementation of the scheme in a statement released on Friday, made available to newsmen in Ibadan.\n<\/p>\n
According to the commissioner, the decision followed recommendations from the National Pension Commission, which advised that newly recruited workers should be enrolled first to enable them to contribute over a longer period and build substantial retirement savings before retirement, which will span about three decades in many instances\n<\/p>\n
\u201cThe Contributory Pension Scheme was introduced as a more sustainable alternative to the old Defined Benefit Scheme, which many states have found difficult to maintain,\u201d Oyelade said.<\/p>\n
He noted that while Oyo State has settled pension obligations up to 2021, some states are still struggling to pay pension arrears dating back to 2011, underscoring the challenges associated with the old system.\n<\/p>\n
Responding to concerns that the government was transferring responsibility for pension payments to Pension Fund Administrators, the commissioner dismissed the claim, insisting that the state remains fully committed to the welfare of its workers and retirees.\n<\/p>\n
\u201cThe government is not abdicating its responsibility. Under the CPS, the government will continue to make its statutory contributions as required by law,\u201d Oyelade added.<\/p>\n
Also, allaying fears that pension deductions may not be remitted into workers\u2019 Retirement Savings Accounts, Oyelade stated that the law mandates remittance of contributions within seven days of salary payment, adding that the current administration has demonstrated its commitment to complying with the law and ensuring prompt remittance of both workers\u2019 and government\u2019s contributions.\n<\/p>\n
The commissioner explained further that each worker owns and has access to their Retirement Savings Account, making the process transparent and allowing contributors to independently verify remittances.\n<\/p>\n
Addressing concerns about possible defaults by future administrations, Prince Oyelade said the scheme is backed by law and regulated by PenCom, which monitors compliance and provides oversight to ensure pension obligations are met.\n<\/p>\n
According to him, the legal and regulatory framework of the CPS was designed to promote accountability and continuity beyond any particular administration.\n<\/p>\n
Oyelade also expressed confidence in the current administration\u2019s commitment to workers\u2019 welfare, describing Governor Seyi Makinde as a workers-friendly governor who places the welfare of civil servants at the heart of his administration.\n<\/p>\n
He said the governor has consistently paid workers\u2019 salaries for more than seven years, not because of any specific law compelling him to do so, but out of a sense of public trust and responsibility, reassuring workers that the CPS has not removed the government\u2019s responsibility for retirees after leaving service.\n<\/p>\n
\u201cThe scheme establishes a structured system in which pension contributions accumulated throughout an employee\u2019s years of service are professionally managed in a Retirement Savings Account, while the government continues to fulfil its statutory obligations,\u201d he said.<\/p>\n
\u201cThe CPS remains one of the most reliable mechanisms for securing workers\u2019 financial future after retirement,\u201d Oyelade said.\n<\/p>\n
The PUNCH on Thursday reported that the Oyo State Governor, Seyi Makinde, had approved the Contributory Pension Scheme that will apply to officers employed into the service of Oyo State with effect from January 1, 2025, while the scheme will officially commence on July 1, 2026.\n <\/p>\n","protected":false},"excerpt":{"rendered":"The Oyo State Government has defended its decision to commence the Contributory Pension Scheme with workers recruited in…\n","protected":false},"author":2,"featured_media":507631,"comment_status":"","ping_status":"","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[14],"tags":[72,176,61,60,174,175],"class_list":["post-508745","post","type-post","status-publish","format-standard","has-post-thumbnail","category-personal-finance","tag-business","tag-finance","tag-ie","tag-ireland","tag-personal-finance","tag-personalfinance"],"_links":{"self":[{"href":"https:\/\/www.newsbeep.com\/ie\/wp-json\/wp\/v2\/posts\/508745","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/www.newsbeep.com\/ie\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.newsbeep.com\/ie\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.newsbeep.com\/ie\/wp-json\/wp\/v2\/users\/2"}],"replies":[{"embeddable":true,"href":"https:\/\/www.newsbeep.com\/ie\/wp-json\/wp\/v2\/comments?post=508745"}],"version-history":[{"count":0,"href":"https:\/\/www.newsbeep.com\/ie\/wp-json\/wp\/v2\/posts\/508745\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/www.newsbeep.com\/ie\/wp-json\/wp\/v2\/media\/507631"}],"wp:attachment":[{"href":"https:\/\/www.newsbeep.com\/ie\/wp-json\/wp\/v2\/media?parent=508745"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.newsbeep.com\/ie\/wp-json\/wp\/v2\/categories?post=508745"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.newsbeep.com\/ie\/wp-json\/wp\/v2\/tags?post=508745"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}