Ogun releases N6.75bn for gratuity, additional pension benefits

FILE: Ogun State Governor, Dapo Abiodun

The Ogun State Government has released N6.75bn for the payment of gratuity and Additional Pension Benefits to retirees in the state.

The Head of Service, Olanrewaju Saka, disclosed this in a statement on Friday, saying the release was part of the government’s efforts to address outstanding pension obligations and improve the welfare of retired workers.

Saka said N2.751bn was released to pay gratuity to 432 beneficiaries, while another N4bn was released for the payment of Additional Pension Benefits to eligible retirees from July 2025 to date.

He said the government remained committed to ensuring that workers who served the state meritoriously received their retirement benefits despite competing demands on the state’s resources.

Explaining the Additional Pension Benefit, Saka said it was introduced to cushion the difference between the pension benefits retirees would have received under the old Defined Benefit Scheme and what they are entitled to under the Contributory Pension Scheme.

He said, “The Additional Pension Benefit was introduced to cushion the difference between the pension benefits retirees would have received under the old Defined Benefit Scheme and what they are entitled to under the Contributory Pension Scheme.”

Saka explained that workers under the CPS have retirement savings in their Retirement Savings Accounts, but some retirees could receive lower benefits than they would have been entitled to under the former scheme.

He said the APB was therefore designed to provide an additional payment from the state government to eligible retirees to bridge part of the gap.

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According to him, the benefit was separate from funds in retirees’ Retirement Savings Accounts and did not reduce the savings accumulated in those accounts.

Saka said, “The APB is separate from the funds in retirees’ Retirement Savings Accounts and does not reduce the savings accumulated in those accounts.”

The Head of Service said the latest release demonstrated the administration’s commitment to providing greater financial security and dignity for retirees.

He added that the government would continue to address outstanding pension and gratuity obligations in a systematic and sustainable manner.

Saka assured retirees that the government would maintain transparency and engagement in the administration of retirement benefits.

He also urged serving public officers to ensure that their pension records and documentation were accurate and up to date.

Saka reaffirmed the commitment of the Dapo Abiodun administration to building a pension system that would enable public servants to approach retirement with greater confidence and security.