Lagos State targets 18% contribution into workers’ savings

The Lagos State government has said it will begin the remittance of 18 per cent contributions into its workers’ Retirement Savings Accounts.

The Director-General, Lagos State Pension Commission, Folashade Onanuga, disclosed this at the 17th Retirement Benefits Documentation seminar in Lagos.

She said the commission had received approval from the state government to commence the new rate.

The Pension Reform Act 2014 increased the rate of contributions for employees and employers to a minimum of eight per cent and 10 per cent, respectively rising from 7.5 per cent formerly contributed by employers and the employees.

According to her, all was set to commence the deductions of the new rate signed into law in 2014.

She also disclosed that as of May 29, 2019, a total of N5.79 billion had been credited into the RSAs of 1,542 retirees.

She noted that the state government under the leadership of the Executive Governor, Babajide Sanwo-Olu, was committed to improving the welfare of retirees.

According to her, the governor who started the Contributory Pension Scheme, in the state when he was a commissioner at the Ministry of Establishment and Pension, understood the pains of retirees when their entitlements are not paid on time.

The administration of Sanwo-Olu had continued to show commitment to the welfare of its workforce, both in and out of the office, she said.

Onanuga explained that the governor was putting plans in place to ensure that retirees got their payments promptly.

She said: “We remain resolute in our commitment as a commission to 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.”