Lagos Saves N217bn in Employees Retirement Saving Accounts

•  Pays beneficiaries of deceased employees N170m

Gboyega Akinsanmi

The Lagos State Government (LSG) said it has saved over N217billion in the retirement savings accounts of all public servants in its employment.

LSG, also said over N11.75billion has been paid to contributors in 10 years the state started complying with the Pension Reform Act, 2014.

Similarly, the state government, said it has paid beneficiaries of deceased employees the sum of N170 million as insurance benefits, noting that the insured, at death, is by law, supposed to be paid such rites to named beneficiaries to alleviate the immediate needs of their family members.

The Commissioner for Establishment, Training & Pensions, Dr. Akintola Oke disclosed this at a recent ministerial press briefing he addressed alongside his information counterpart, Mr. Steve Ayorinde and the ministry’s Permanent Secretary, Folashade Ogunnaike.

Oke said there “has been regular deduction of 7.5 percent from the salaries of staff and corresponding 7.5 percent by the state government into the retirement savings accounts, explaining that the accounts are maintained with their Pension Fund Administrators (PFAs)”

He noted that the deduction from staff members had cumulatively risen to N78.59 billion since the state government started complying with the Pension Reform Act in 2007.

He, also, pointed out that the state government, had funded employees’ pension rights under the contributory pension scheme in a period of ten years to the tune of N138.413 billion, thereby bringing the state’s retirement saving accounts to a whopping sum of N217 billion as at March.

The commissioner also said that the state government, had through the Lagos State Pension Commission (LASPEC) paid a sum of N11.754 billion into the Retirement Saving Account (RSA) of 2886 retirees.

According to him, 1,291of the retirees were from the State Universal Basic Education Board (SUBEB); 697 from Teacher Establishment Pension Office (TEPO); 887 from the mainstream service and 11 from parastatals.

He, therefore, said the administration of Governor Akinwunmi Ambode has not relented in the bailout of the local government and SUBEB retirees, adding, the governor, magnanimously gave instructions for state government funds to be utilised to pay retirees from local government.

The commissioner explained that the estate of a deceased staff is also entitled to receive the balance in the retirement account and accrued rights due, if the employee had joined service before the commencement of the Contributory Pension Scheme.”

On training, he said over 5000 employees had been trained in the last one year, noting that 3160 officers benefitted from 72 in-plant/tailored made workshops and training programme.