Ogun pays N5bn pension in four years

The Governor of Ogun State, Otunba Gbenga Daniel, has said that the state government paid out a total of N5bn as pension in the past four years, according to a statement on Saturday.
Speaking while presenting letters of endorsement to sixteen Pension Fund Administrators that would be recommended to workers in the Ogun State Public Service, he said the state government serviced its pension liabilities with N110m on a monthly basis.
He said the issue of pension in Ogun State had a terrible history and had been as inconveniencing to the state government as it was to the retirees themselves.
He said that the figures continued to rise as more people retired, saying that the situation informed the state government’s excitement about the new scheme.
He said that there won’t be any impediments to the remission of pension funds as contributions would be made in tandem with payment of salaries.
In his remark, the Managing Director of First Guarantee Pension Limited, Mr. Charles Nwachukwu, advised other state governors to embrace the new pension regime in order to allow for a smooth implementation.
He commended the government of Ogun State for taking full charge of activities with regard to the implementation of the new contributory pension scheme in the state, adding that if other states in the federation followed in the footsteps of Ogun, the new pension scheme would enjoy a smooth sail.
He noted that there was need for state governments to embrace the scheme by first enacting the necessary statutory requirements and also stipulating the guidelines for the smooth operation of the scheme in their various domains, adding that the Ogun State Government had done very well in providing the enabling environment that would ensure a resounding success of the scheme in the state.
He said First Guarantee Pension was poised to comply with all the necessary conditions and guidelines as stipulated by the state government.
The Ogun State Commissioner for Finance, Mr Kehinde Sogunle, said that the enactment of the Ogun State Pension Law 2006, the engagement of a firm of consulting actuaries to valuate the past benefits of workers and the creation of pension bureaux attested to the state government’s commitment to the success of the scheme.
While recognising the freedom of workers in the state to patronise any PFA of their choice, he noted that it was the responsibility of the state government to guide its workers aright.
According to him, “The interest of our workers is paramount to the state government vis-à-vis the determination of the calibre of the managers of the pension assets”.
He pointed out that the selected PFAs underwent rigorous screening exercise including being made to make presentations before the State Technical Committee on Contributory Pension Scheme and interactions with a view to determining the best method(s) that assured hitch-free implementation of the scheme.
He made it clear that the ceremony marked the formal commencement of the scheme in the state.
He said any registration of workers made earlier by any PFA was unacceptable to the state government as uncoordinated registration had the potential of engendering loss of workers’ confidence in the scheme.
He said the state government had directed the National Pension Commission to disregard all purported registrations carried out by any PFA on behalf of Ogun State public service workers.