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🇳🇬 Nigeria /Economy & Trade

Lagos says CPS pension increase implementation underway

From The Punch · () English

Summarized and contextualized by DistantNews.

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  • The Lagos State Government is proceeding with the implementation of an approved pension increase for retirees under the Contributory Pension Scheme (CPS), funding it entirely from state resources.
  • The state clarified that no federal funds were released for this increase, and it is the sole state implementing this enhancement for its CPS pensioners at its own expense.
  • While the increase for Defined Benefits Scheme retirees is complete, the CPS implementation is ongoing as the state determines its full financial liability with the help of an actuary.

Lagos State is actively processing the implementation of a recently approved pension increase for retirees enrolled in the Contributory Pension Scheme (CPS), assuring that the state is covering the additional financial liability from its own budget. The Lagos State Pension Commission (LASPEC) clarified that the Federal Government has not provided any funds for this increase.

Lagos State will therefore not duplicate the increase on that same component.

— Babalola ObilanaThe Director-General of LASPEC explained the state's policy on not duplicating pension increases already covered by federal funds.

According to Babalola Obilana, Director-General of LASPEC, Lagos is the only state currently implementing this pension enhancement for its CPS pensioners without federal support. He noted that eligible retirees under the Defined Benefits Scheme have already begun receiving their enhanced pensions. For those retirees whose pensions include a federal component, the applicable increase on that portion has already been disbursed directly by the Federal Government, and Lagos State will not duplicate this payment.

The implementation for CPS pensioners is more complex, as the state is still determining its precise financial obligation. Obilana explained that an independent actuary has been engaged to assess the liability and establish a basis for implementation, given the structure of the CPS. LASPEC has also requested detailed data from Pension Fund Administrators and Approved Existing Schemes to accurately verify eligible pensioners, calculate adjustments, and ascertain the overall financial implications.

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.

— Babalola ObilanaObilana detailed the process for determining the state's financial liability for the CPS pension increase.

This clarification comes amid pressure from Lagos CPS pensioners, who had threatened a protest if the state government failed to implement the increase by August 19. The pensioners accused LASPEC of delaying the process. However, the state government refuted any deliberate delay, emphasizing its commitment to ensuring accurate and consistent implementation of the benefit.

The Lagos State Government therefore wishes to assure its pensioners that there is no deliberate delay or wit

— Lagos State GovernmentThe state government addressed concerns about delays in implementing the pension increase.
DistantNews Editorial

Originally published by The Punch. Summarized and contextualized by our editorial team with added local perspective. Read our editorial standards.

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