State Govt Releases N6.75bn for Retirees’ Gratuity, Pension Benefits

The Ogun State Government has released N6.75 billion to pay gratuity and Additional Pension Benefits (APB) to retirees across the state.

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

Saka said N2.751 billion had been allocated for the payment of gratuity to 432 beneficiaries, while another N4 billion was released for Additional Pension Benefits for eligible retirees from July 2025 to date.

He said the government remained committed to paying retirement benefits owed to workers who had served the state, despite the various demands on its finances.

The Head of Service explained that the Additional Pension Benefit was introduced to address differences between what some retirees would have received under the former Defined Benefit Scheme (DBS) and their entitlements under the Contributory Pension Scheme (CPS).

Under the CPS, workers contribute towards their retirement through individual Retirement Savings Accounts. However, some retirees may receive lower benefits under the new arrangement than they would have received under the old scheme.

The APB was therefore introduced as an additional payment by the state government to eligible retirees to help bridge part of the difference between the two pension arrangements.

Saka clarified that the APB is separate from the money held in retirees’ Retirement Savings Accounts and does not affect or reduce their accumulated pension savings.

He said the latest release reflected the administration’s efforts to provide retirees with better financial security and ensure they receive the benefits due to them after years of public service.

According to him, the government would continue to address outstanding pension and gratuity liabilities in a systematic and sustainable manner.

Saka also assured retirees that the administration would maintain transparency in the management of retirement benefits and continue to engage relevant stakeholders.

He advised serving public servants to ensure that their pension records and other relevant documents were accurate and regularly updated to prevent difficulties when they retire.

The Head of Service reaffirmed the commitment of the Dapo Abiodun administration to improving the state’s pension system and creating conditions that would give public workers greater confidence and financial security as they approach retirement.