The Lagos State Government has said it is processing the implementation of the recently approved pension increase for retirees under the Contributory Pension Scheme, stressing that the state is funding the additional liability from its own resources.
The government, through the Lagos State Pension Commission, said no funds were released by the Federal Government to Lagos for the payment of the increase, dismissing claims that federal funds meant for pensioners were being held by the state to generate interest.
Director-General of LASPEC, Babalola Obilana, stated this in a clarification on the implementation of the pension increase.
According to him, Lagos decided to extend the increase to eligible state pensioners and is currently the only state in the federation implementing the increase for its pensioners at its own cost.
Obilana said the implementation had already been completed for eligible pensioners under the Defined Benefits Scheme, who are now receiving enhanced pensions.
He explained that Lagos retirees whose pensions contain a Federal Government component had already received the applicable increase on that portion directly from the Federal Government.
“Lagos State will therefore not duplicate the increase on that same component,” he said, explaining that the position was necessary to prevent double payment and ensure consistency in the implementation.
For pensioners under the Contributory Pension Scheme, however, Obilana said the process was still ongoing because the government was determining its full financial liability under the scheme.
“Given the structure of the CPS and the need to determine the state’s full financial exposure accurately, an independent actuary has been engaged to assess the liability and provide the appropriate basis for implementation,” he said.
He said LASPEC had also requested comprehensive data on affected CPS pensioners from relevant Pension Fund Administrators and Approved Existing Schemes/Administrators.
The data, according to him, would enable the government to verify the number of eligible pensioners, calculate the applicable adjustments and determine the overall financial implications before implementation.
The clarification comes against the backdrop of a threat by Lagos CPS pensioners to stage a protest on August 31 if the state government fails to implement the increase by August 19.
The pensioners, under the Lagos State Council of the Nigeria Union of Pensioners, had accused LASPEC of delaying the process and demanded that their accounts with their respective PFAs be credited by the August 19 deadline.
But the state government rejected the suggestion that it was deliberately withholding the benefit.
“The Lagos State Government therefore wishes to assure its pensioners that there is no deliberate delay or withholding of funds,” Obilana said.
He said the ongoing process was intended to ensure that the CPS component of the increase was implemented “accurately, transparently and sustainably.”
Obilana said the government appreciated the concerns of pensioners and urged them to be patient while the process was completed.
“The government deeply appreciates the patience and understanding of our senior citizens and remains committed to ensuring that pensioners receive all benefits legitimately due to them,” he said.