Oyo State Government Defends New Pension Scheme for Workers

The Oyo State Government, represented by Dotun Oyelade, clarified its decision to implement a new contributory pension scheme for civil servants, aimed at ensuring sustainable retirement savings. This decision follows recommendations from the National Pension Commission (PENCOM) and is designed for newly recruited workers to enable longer contribution periods.

The government emphasized its commitment to worker welfare and dismissed claims of abdicating responsibility for pension payments. The scheme is intended to replace the old defined benefit structure, which has faced challenges due to mounting pension liabilities.

The Oyo State Government successfully settled its pension obligations in 2021, while many other states continue to struggle with pension arrears dating back to 2011. The scheme allows workers direct access to their retirement savings accounts, promoting transparency and enabling independent verification of contributions.

The government will continue to fulfill its statutory obligations under the contributory pension scheme, ensuring compliance with legal requirements for timely remittance of contributions.