Lagos State to clear backlogs of accrued pension by 2021, pays N1.89bn to 466 retirees

Mrs. Onanuga,DG, LASPEC

*Retirees to enjoy free health care, bus, ferry services

Maintaining its leading role, Lagos State Government has pledged to clear all outstanding accrued pension rights by 2021., just as it paid N1.88 billion for 466 retirees on Thursday March 26.

The Directo-General, Lagos State Pension Commision (LASPEC) Mrs Folashade Onanuga, who spoke at the 72nd Batch Retirement Benefit Bond Certificate Presentation in Lagos, noted that the feat will be achieved through the solid structures that have been put in place by the state government.

“We are sure that by 2021 all outstanding backlog will have been cleared,” she said
Onanuga stated that the mandate will be possible because the state government had currently increased the funding rate of the redemption funding account from which the accrued right is paid, from five to 10 per cent .

She explained that the government had also approved a budget of N13 billion and a pension sinking fund in addition to the monthly increase.

“We have a lot of fund flowing in to enable us make these payments and that is why in the last few months, we have paid about N2 billion monthly on the retirement bond.

“With this trend,we are very sure that by 2021 ,we won’t have any outstanding backlog ” she said.

According to her, the backlog currently being paid is for retirees before April 2007 when the state transmitted to the PFA’s.

Onanuga said any worker who had joined the Lagos State service after April 2007 and is retiring immediately transmits to become a pensioners because his or her funds are already being deposited in the Retirement Savings Account (RSA).

“The accrued rights , which is the one we are having a challenge with is what we are taking a bold step to resolve, “she said.

The Director-General explained that the accrued was huge because there were years in the past when the government embarked on mass recruitment and the employees in those set will retire at the same time after 35 years.

She said the government will however need a lot of fund to pay for the benefit of those set unlike the scenario where the recruitment was not very huge.

“With what we have in place ,we have taken into consideration what we need to pay the beneficiaries till 2022 and by 2021, we are sure that even before workers retires their pension right will already be in theit RSA’s, ” she said.

Source: inspenonline