Ogun releases N6.75bn to pay retirees’ gratuity, pension benefits

By Adejoke Adeleye

The Ogun State Government has released N6.75 billion to settle gratuity and Additional Pension Benefits (APB) owed to retirees in the state, in a move aimed at reducing outstanding pension obligations and improving the welfare of former public servants.

The Head of Service, Mr Olanrewaju Saka, disclosed this in a statement on Friday, saying the release reflected the government’s continued commitment to ensuring that retirees receive their entitlements despite competing demands on the state’s finances.

According to Saka, N2.751 billion of the fund was earmarked for the payment of gratuity to 432 beneficiaries, while a further N4 billion was approved 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, describing the latest payment as part of efforts to address pension obligations in a systematic and sustainable manner.

Saka also explained the purpose of the Additional Pension Benefit, saying the scheme was introduced to cushion the disparity between the pension benefits some retirees would have received under the former Defined Benefit Scheme (DBS) and the benefits available to them under the Contributory Pension Scheme (CPS).

He explained that although workers under the CPS accumulate retirement savings in their Retirement Savings Accounts, some retirees could receive benefits that are lower than what they would have been entitled to under the previous pension arrangement.

The APB, he said, was therefore introduced as an additional payment by the state government to eligible retirees to bridge part of the difference.

Saka stressed that the Additional Pension Benefit is separate from the funds accumulated in retirees’ Retirement Savings Accounts and does not diminish their personal pension savings.

The Head of Service said the latest release demonstrated the administration’s commitment to providing retirees with greater financial security and preserving their dignity after years of public service.

He assured retirees that the government would continue to address outstanding gratuity and pension obligations while maintaining transparency and engagement in the administration of retirement benefits.

Saka also urged serving public officers to ensure that their pension records and relevant documentation were accurate and up to date to facilitate the smooth processing of their retirement benefits when due.

He reaffirmed the commitment of the Prince Dapo Abiodun administration to building a pension system that would give public servants greater confidence and financial security as they approach retirement.

Dear Vows