The Ogun State Government has approved the release of N6.75bn to settle gratuity and Additional Pension Benefits owed to retirees in the state.
The Head of Service, Olanrewaju Saka, disclosed this in a statement on Friday, explaining that the payment was part of efforts by the government to clear outstanding pension obligations and improve the welfare of retired public servants.
According to Saka, N2.751bn was allocated for the payment of gratuity to 432 retirees, while an additional N4bn was released to cover Additional Pension Benefits for eligible pensioners from July 2025 to date.
He said the government remained committed to ensuring retirees who served the state diligently received their entitlements, despite other financial demands facing the state.
Saka explained that the Additional Pension Benefit was created to address the gap between what retirees would have received under the former Defined Benefit Scheme and their entitlements under the Contributory Pension Scheme.
He said, “The Additional Pension Benefit was introduced to cushion the difference between the pension benefits retirees would have received under the old Defined Benefit Scheme and what they are entitled to under the Contributory Pension Scheme.”
According to him, although workers under the CPS have retirement savings in their Retirement Savings Accounts, some retirees may receive lower benefits than they would have under the previous pension arrangement.
He explained that the APB was therefore established as an extra payment by the state government to eligible retirees to help bridge the difference.
Saka stressed that the benefit was independent of retirees’ Retirement Savings Accounts and would not affect the funds already accumulated in those accounts.
He said, “The APB is separate from the funds in retirees’ Retirement Savings Accounts and does not reduce the savings accumulated in those accounts.”
The Head of Service said the latest disbursement reflected the administration’s determination to improve retirees’ financial security and ensure they enjoy greater dignity after leaving public service.
He added that the government would continue working to settle outstanding pension and gratuity liabilities in a structured and sustainable manner.
Saka also assured retirees that the administration would uphold transparency and maintain engagement in the management of retirement benefits.
He urged serving public servants to ensure that their pension records and supporting documents remained accurate and up to date.
Saka further reaffirmed the Dapo Abiodun administration’s commitment to developing a pension system that would give workers greater confidence and financial security as they approach retirement.
