The National Pension Commission (PenCom), has urged the Lagos State Governor, Babajide Sanwo-Olu, to extend periodic pension increases currently enjoyed by Defined Benefit Scheme (DBS) retirees to those under the Contributory Pension Scheme (CPS).
This, according to PenCom, will boost their monthly pensions.
The Director General, PenCom, Ms. Omolola Oloworaran, made the request during a recent courtesy visit to Governor Sanwo-Olu at the Lagos State Government House.
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The visit was to present the report of PenCom's 2024 routine inspection of the Lagos State Pension Commission (LASPEC) and to thank the Governor for confirming his participation as Special Guest at the Pension Industry Leadership Retreat organised in Lagos.
She pointed out that currently, only DBS retirees were paid pension increases in Lagos State, leaving out their counterparts under the CPS.
She made a case for the prioritisation of retirees under the CPS given the contributory nature of the scheme.
Oloworaran lauded Lagos State as a leading model in effective implementation of the CPS.
She highlighted key achievements, of the state including consistent deduction and remittance of employee contributions to their Retirement Savings Accounts (RSAs), full settlement of all backlog of accrued pension rights, the existence of a valid Group Life Insurance Policy for most public service employees, and the deployment of advanced ICT systems to enhance pension administration in Lagos State.
Despite this progress, the PenCom DG proposed a partnership with Lagos State to make the Pension Clearance Certificate (PCC) a mandatory requirement for companies seeking for Lagos State Government contracts and services, as practiced at the federal level.
In addition, the DG recommended transitioning unremitted contributions currently held in commercial banks' escrow accounts into Transitional Contribution Fund (TCF) accounts managed by Pension Fund Administrators (PFAs), to optimise investment returns.
