Ogun Retirees Reject New Pension Scheme, Demand Return to Old System

By Bodunrin Kayode

The Association of New Ogun Civil and Public Service Retirees (ANOCPSR) has again called on the state government to halt its planned implementation of the contributory pension scheme, describing the move as rushed and detrimental to the welfare of retired workers.

In its second statement this month, the association raised fresh concerns over what it termed "gaping holes" in the transitional arrangements proposed by the government to move retirees from the old pension system to the new scheme.

According to the retirees, the government's claim of engaging all stakeholders before arriving at its recent proposals falls short of addressing their fundamental anxieties. They insist that for the government to demonstrate genuine transparency, it must first clear all outstanding doubts before proceeding with any changes.

The association's statement, made available to newsmen, indicated that members had carefully reviewed the government's proposed relief package for retirees from 2nd July 2025 onward.

"Our comparative study of the old Defined Benefit Scheme (DBS) against the newly introduced Contributory Pension Scheme with Additional Pension Benefit (CPS-APB) still reveals a wide gap," the group stated.

"Under the DBS, a retiree receives 80% of monthly gross salary as pension, plus a gratuity worth 300% of annual emolument. Under the proposed CPS-APB, the compensatory allowance ranges between 116% and 280% of annual emolument, while retirees can access only 25% of their retirement savings account balance.

"This is grossly inadequate for workers who have given 35 years of meritorious service. It is no wonder some categories of workers were exempted from this scheme. Why?"

Six Reasons Why July 2025 Retirees Will Be Short-Changed

The association listed several foundational defects in the pension system that must be addressed before any transition can be fair or lawful:

1. Historical non-compliance: Past administrations failed to treat the CPS implementation seriously, neglecting to pay accrued rights into workers' retirement savings accounts when the scheme was test-run in January 2008.

2. Inconsistent remittances: Monthly pension deductions from salaries and government contributions were not remitted consecutively as required by law, compromising the position of those retiring from July 2025.

3. Restricted choice of PFAs: Workers have not been allowed to select Pension Fund Administrators of their choice, violating the enabling law.

4. 17 years of missing remittances: Monthly deductions from salaries went unremitted to retirement savings accounts for 17 years. No sanctions were imposed on the government for failing to remit within seven days of salary payments—a criminal omission under the law.

5. Recent remittances after retirement: The current administration itself failed to remit deductions for nearly seven years, only beginning compliance after announcing the CPS take-off date of July 2025. Remittances made after retirement defeat the purpose of the scheme.

6. Inadequate RSA balances: The balances in workers' retirement savings accounts are grossly insufficient to commence the CPS, exposing the government's longstanding nonchalance toward pension laws.

7. Unapproved Additional Pension Benefit: What the government calls the Additional Pension Benefit remains a mere proposal, not yet submitted to PENCOM for consideration and approval. Such an arrangement cannot be trusted from a government that has treated CPS implementation as a child's play from inception.

Call for Legal Advice and Status Quo

The association urged the government to seek proper legal counsel on what it described as a "fire brigade implementation" to avoid embarrassment from strict interpretation of workers' rights laws.

"We advise Governor Dapo Abiodun to consider the prayers of affected retirees and allow status quo to remain. Let monthly pension continue under the Defined Benefit Scheme, which better addresses retirees' welfare than the proposed CPS-APB," the statement read.

The retirees acknowledged the governor's efforts in clearing gratuities owed by previous administrations, describing this as commendable adherence to the principle of taking assets and liabilities. They noted that his successor would continue from wherever he stops in 2027.

"We urge the Governor to protect his good name by shifting the proposed CPS-APB implementation to a later year when all aspects of the governing law would have been properly obeyed," the association concluded.