The Lagos State Government has said it is set to start the remittance of 18 per cent pension contributions of workers.
The Director-General, Lagos State Pension Commission (LASPEC) Folashade Onanuga, who disclosed this at the 17th Retirement Benefits Documentation seminar held in Lagos, said the Commission had received an approval from the state government to commence the new rate.
The Pension Reform Act 2014, had raised the rate of contributions for employees and employers to a minimum of eight per cent and 10 per cent, respectively from the former 7.5 per cent by both.
According to Onanuga, all is set to begin the deductions of the new rate signed into law in 2014.
This is even as she stated that from May 29, 2019, a total of N5,796,683,937.69 billion has been credited into the Retirement Savings Accounts (RSAs) of 1542 retirees.
She emphasised that the state government under the leadership of governor Babajide Sanwoolu, is poised to improve the welfare of retirees.
She added that the governor who started the contributory pension scheme (CPS), in the state when he was a commissioner in the ministry of establishment and pensions, understands the pain of retirees when their entitlements are not paid on time.
She stressed that the administration of the governor has continued to show great commitment to the welfare of its workforce, both in and out of the office, adding that the governor like never before is putting plans in place to ensure that retirees get their payments on time.
“We remain resolute in our commitment as a commission to ensure the welfare of retirees from the State’s public Service. We have continued to upgrade our operations to ensure a seamless interface between us, the contributors and our service providers,” she said.
Speaking earlier, the Commissioner, Ministry of Establishment, Training and Pensions, Ajibola Ponnle, said that the commission has gotten approval from the governor to clear all outstanding backlog that have existed in the state.
The commissioner who was represented by the permanent Seceretary, Civil Service Pension Office, Kayode Ogunnubi, assured the retirees that the process of clearing the backlog has started, noting that what happened before will not occur again.