The Ogun State Government has approved an Additional Pension Benefit (APB) under the Contributory Pension Scheme (CPS) to strengthen contributions and retirement security for all civil servants in Ogun State.

Announcing the approval, the Governor, Ogun State, His Excellency, Prince Dr Dapo Abiodun MFR CON who was ably represented by the Honourable Commissioner for Finance and Chief Economic Adviser to the Governor, Otunba AbdulRahman OlaDapo Okubadejo at a strategic engagements between Ogun State Government Officials, Labour Unions, Pension Fund Administrators (PFAs), and members of the Pension Fund Management Committees, explained that the initiative addresses concerns raised about differences between the Contributory Pension Scheme and the former Defined Benefit Scheme (DBS).

Otunba Dapo Okubadejo clarified that the Additional Pension Benefit under the Contributory Pension Scheme is structured to serve a similar purpose as gratuity under the Defined Benefit Scheme. However, it operates with different service year brackets and applicable multiple percentages, which, on an overall basis, provide more favourable outcomes for the majority of retiring staff. He further stated that the Additional Pension Benefit already took effect from July 2025, correcting misconceptions about its commencement date. Under the framework, pension contributions managed by Pension Fund Administrators will continue to support sustainable monthly pension payments, while the Additional Pension Benefit will provide a structured lump sum at retirement.

According to Otunba Dapo Okubadejo, the reform reflects deliberate efforts to ensure fairness, equity, and improved financial outcomes for retirees. He emphasized that the administration remains committed to strengthening the Contributory Pension Scheme while protecting the interests of workers as promised by the Governor, His Excellency, Prince Dr Dapo Abiodun MFR CON.

Otunba Dapo Okubadejo, who continues to work diligently to improve the finances of not only the state but also the entire populace through disciplined fiscal management and strategic economic planning, noted that the policy demonstrates responsible governance and long term financial prudence.

Labour leaders welcomed the clarification and the structure of the Additional Pension Benefit, expressing confidence that the reform will strengthen retirement security and address earlier concerns about benefit adequacy under the Contributory Pension Scheme.

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