Oyo State Introduces New Pension Scheme for Workers

The Oyo State Government, led by Governor Seyi Makinde, is set to introduce a contributory pension scheme for civil servants, effective January 1, 2025, with an official commencement on July 1, 2026. This decision follows recommendations from the National Pension Commission and aims to provide a sustainable and predictable retirement system for newly recruited workers.

Dotun Oyelad, representing the Oyo State Commission, addressed concerns regarding the implementation of the scheme, emphasizing that it would allow workers to contribute over a longer period, thereby building substantial retirement savings. The new scheme is designed to replace the old defined benefit system, which the state found challenging to maintain.

Oyelad reassured that the government remains committed to fulfilling its statutory obligations and that contributions will be remitted within seven days of salary payments. The scheme is structured to ensure transparency and allow contributors to independently verify their retirement savings.