The Oyo State Government has justified its decision to introduce the Contributory Pension Scheme (CPS) for workers employed from 2025, stating that the policy is designed to ensure a stable and dependable retirement system for civil servants.
The Commissioner for Information, Dotun Oyelade, addressed concerns expressed by workers regarding the implementation of the scheme in a statement issued on Friday and made available to journalists in Ibadan.
Oyelade explained that the move was based on recommendations from the National Pension Commission (PenCom), which advised that newly recruited employees should be enrolled first. According to him, this would allow them to contribute over a longer period and accumulate significant retirement savings before leaving service, a process that could span roughly three decades.
“The Contributory Pension Scheme was introduced as a more sustainable alternative to the old Defined Benefit Scheme, which many states have found difficult to maintain,” Oyelade said.
He pointed out that Oyo State has cleared pension obligations up to 2021, while several other states are still battling with pension arrears dating back to 2011, highlighting the difficulties associated with the previous pension arrangement.
Addressing claims that the government was shifting pension responsibilities to Pension Fund Administrators, the commissioner rejected the assertion, stressing that the state remains committed to the welfare of both workers and retirees.
“The government is not abdicating its responsibility. Under the CPS, the government will continue to make its statutory contributions as required by law,” Oyelade added.
To ease concerns about possible non-remittance of pension deductions into workers’ Retirement Savings Accounts, Oyelade stated that the law requires contributions to be remitted within seven days of salary payments. He added that the current administration has shown its commitment to meeting this obligation by ensuring timely remittance of both employee and government contributions.
He further explained that contributors have ownership and direct access to their Retirement Savings Accounts, making the process transparent and enabling workers to independently monitor their contributions.
On fears that future governments might fail to comply with the scheme, Prince Oyelade noted that the CPS is established by law and supervised by PenCom, which oversees compliance and ensures pension obligations are fulfilled.
He said the legal and regulatory structure of the scheme was created to guarantee accountability and continuity beyond any particular administration.
Oyelade also expressed confidence in Governor Seyi Makinde’s commitment to workers’ welfare, describing him as a labour-friendly governor who prioritises the wellbeing of civil servants.
According to him, the governor has consistently paid salaries for more than seven years, not because of any law mandating him to do so, but out of a commitment to public trust and responsibility. He reassured workers that the CPS does not relieve the government of its obligations to retirees.
“The scheme establishes a structured system in which pension contributions accumulated throughout an employee’s years of service are professionally managed in a Retirement Savings Account, while the government continues to fulfil its statutory obligations,” he said.
TheCPS remains one of the most reliable mechanisms for securing workers’ financial future after retirement,” Oyelade said.
The NEWSCLICKNG had earlier reported that Governor Seyi Makinde approved the Contributory Pension Scheme for officers joining the Oyo State Civil Service from January 1, 2025, with official implementation set to begin on July 1, 2026.
