The National Pension Commission (PenCom) has implored the Lagos State Governor, Babajide Sanwo-Olu, to extend periodic pension increases currently enjoyed by Defined Benefit Scheme (DBS) retirees to those under the Contributory Pension Scheme (CPS) in order to boost their monthly pay.
Its Director General of PenCom, Ms. Omolola Oloworaran, made the appeal during a courtesy visit to Governor Sanwo-Olu at the Lagos State Government House on Wednesday.
The visit was to present the report of PenCom’s 2024 routine inspection of the Lagos State Pension Commission (LASPEC) and to thank the Governor for confirming his participation as Special Guest at the Pension Industry Leadership Retreat starting 8 May 2025, according to a statement on Thursday.
She disclosed that only DBS retirees are paid pension increases in Lagos State, leaving out their counterparts under the CPS.
She emphasized the need for the prioritisation of retirees under the CPS given the contributory nature of the scheme.
Ms. Oloworaran commended Lagos State as a leading model in the Federation for its effective implementation of the CPS. She highlighted key achievements, including consistent deduction and remittance of employee contributions to their Retirement Savings Accounts (RSAs), full settlement of all backlog of accrued pension rights, the existence of a valid Group Life Insurance Policy for most public service employees, and the deployment of advanced ICT systems to enhance pension administration in the state.
She also proposed a partnership with Lagos State to make the Pension Clearance Certificate (PCC) a mandatory requirement for companies seeking Lagos State Government contracts and services, as practiced at the federal level.
Besides, she recommended transitioning unremitted contributions currently held in commercial banks’ escrow accounts into Transitional Contribution Fund (TCF) accounts managed by Pension Fund Administrators (PFAs), to optimise investment returns.
She also advised Lagos State to implement an Irrevocable Standing Payment Order (ISPO) for pension contributions to be automatically deducted and remitted from Federation Account Allocation Committee (FAAC) allocations.
This,she said, is to protect pension remittances from potential administrative delays.
Commending the state for its N600 million bailout for outstanding accrued rights of Lagos State University of Education (LASUED) retirees, PenCom DG appealed for further intervention to address unpaid benefits from 2023 and 2024.
She also urged the Governor to consider implementing the Minimum Pension Guarantee (MPG), similar to what obtains at the mandatory CPS level.
She told the Governor that the Federal Government had started its MPG contributions and included it in the recent approval to issue the N758 billion bond to clear pension liabilities.
Governor Sanwo-Olu reaffirmed the state’s commitment to pension reforms and praised the collaborative relationship with PenCom under the current leadership.
He expressed support for implementing pension increases for CPS retirees.
While he expressed optimism about the sustainability of reforms by future administrations, he noted that an ISPO may not be necessary at this time.
He also called on PenCom to support the state’s developmental initiatives by encouraging pension fund investments in government-issued bonds.
