About N9.56 billion has been remitted by Lagos State Government as its workers’ pension contributions in the last one year, Governor, Akinwunmi Ambode, has said.
The governor, who spoke while reeling out the state’s achievement on pensions in the past three years, stated that the amount was credited into the workers’ Retirement Savings Accounts (RSA) managed by their various Pension Fund Administrators.
Ambode was represented by the Commissioner for Establishments, Training and Pensions, Dr. Akintola Benson at the 3rd Anniversary of Governor Ambode’s Administration.
He disclosed that there have been regular deductions of 7.5 per cent of monthly basic salary, rent and housing allowances from the salaries of workers and corresponding 7.5 per cent by the state government into the RSAs maintained by them with their appointed PFAs.
According to him, there has been reduction in outstanding backlog of terminal entitlements of retired public servants, consistency in payment of pension and prompt payment of death benefits.
“From May, 2017 to date, contributions by employee and that of the employer credited into Retirement Savings Accounts was N9.56 billion. There have been regular deductions of 7.5% of monthly basic salary, rent and housing allowances from the salaries of staff and corresponding 7.5 per cent by the state government into the RSAs maintained by them with their appointed PFAs.
“This has been achieved due to automation of the payroll which automatically ensures deductions and remittances of pension contributions. The Oracle application is regularly upgraded as indicated, for example, in the recent addition of the Additional Voluntary Contribution deduction field on the Oracle application.”
The Governor further said there has been continued significant reduction in outstanding backlog of terminal entitlements of retired public servants. “This Administration commenced and has been able to maintain the trend of paying terminal entitlements of retired employees monthly since it started in August, 2015.
“During the period under review, 80 beneficiaries of deceased employees had been paid the total sum of N220.7 million. The state government in the last 31 months has, through the Commission, paid 130 named beneficiaries, insurance benefit worth over N392 million.
“The insured death is by Law to be paid to named beneficiaries to alleviate the immediate needs of the family members of a deceased person. The Estate of a deceased worker is also entitled to receive the balance in the RSA and accrued rights due, if the employee had joined service before the commencement of the Contributory Pension Scheme (CPS),” he added.