The National Pension Commission (PenCom) has called on Lagos State Governor Babajide Sanwo-Olu to extend periodic pension increases to retirees under the Contributory Pension Scheme (CPS).
The Director-General of PenCom, Ms. Omolola Oloworaran, made the appeal during a courtesy visit to the governor at the Lagos State Government House on Wednesday.
She noted that while retirees under the Defined Benefit Scheme (DBS) were already receiving periodic increases, their counterparts under the CPS remained excluded.
“The inclusion of CPS retirees will boost their monthly incomes and improve their welfare,” Oloworaran said.
She commended Lagos State for being a national leader in CPS implementation and highlighted several achievements, including consistent deductions, full settlement of accrued pension rights, a valid Group Life Insurance policy, and the deployment of advanced ICT systems.
The visit also served to present PenCom’s 2024 routine inspection report of the Lagos State Pension Commission (LASPEC) and to thank the governor for agreeing to serve as Special Guest at the upcoming Pension Industry Leadership Retreat on 8 May.
Despite the progress, the PenCom DG urged the state to make the Pension Clearance Certificate (PCC) a mandatory requirement for companies seeking government contracts, aligning with federal practice.
She also recommended moving unremitted contributions from commercial banks’ escrow accounts into Transitional Contribution Fund (TCF) accounts managed by Pension Fund Administrators (PFAs) to optimise returns.
In addition, Oloworaran proposed the implementation of an Irrevocable Standing Payment Order (ISPO) to ensure timely pension deductions from FAAC allocations, thus safeguarding against administrative delays.
She praised the state for the recent N600 million bailout for outstanding LASUED retirees but appealed for further interventions to address unpaid benefits for 2023 and 2024.
Oloworaran also encouraged the governor to implement the Minimum Pension Guarantee (MPG) for Lagos CPS retirees, noting that the federal government had already begun contributions under the scheme, including provisions in the recently approved N758 billion bond for pension liabilities.
In response, Governor Sanwo-Olu reaffirmed his administration’s commitment to pension reforms and expressed support for increasing CPS retirees’ pensions. However, he noted that an ISPO might not be necessary at this time.
The governor also called on PenCom to encourage pension fund investments in state-issued bonds to support developmental initiatives.
