Gov Dapo Abiodun Unveils 25-Member Pension Committee to Tackle Contributory Fund Irregularities

In a strategic move to resolve persistent challenges in the Ogun State contributory pension system, Governor Dapo Abiodun has officially inaugurated a 25-member Pension Funds Management Committee dedicated to addressing irregularities and non-remittance issues associated with the state and local government pension schemes.

The newly formed committee, which was inaugurated on Tuesday, is jointly chaired by Mrs. Arinola Adetayo and Mr. Olufisan Osiyale. It draws members from key bodies including the Bureau of State Pensions and the Bureau of Local Government Pensions.

According to LMSINT MEDIA, the committee has been mandated to provide both administrative and expert guidance on the proper functioning of the Contributory Pension Scheme (CPS). Their responsibilities include monitoring the implementation process, reviewing updates, and analyzing policy directives from the National Pension Commission (PENCOM) for timely and effective application in the state’s pension framework.

Committee’s Duties and Focus

The committee is expected to ensure the prompt remittance of both employer and employee contributions into designated pension accounts. In addition, they will assess reports from Pension Fund Administrators (PFAs) and Pension Fund Custodians (PFCs), engage with independent auditors, actuarial consultants, and legal professionals as needed, and offer strategic advice on managing pension-related risks.

Another core responsibility is to improve employees’ understanding of their pension entitlements, ensuring transparency and confidence in the system. The committee’s overarching goal is to stabilize and enhance the CPS in Ogun State by applying global best practices and ensuring compliance with established pension laws.

Background: Workers’ Strike and Pension Law Criticism

It is noteworthy that this intervention follows a 7-day industrial strike staged by state and local government workers. Their protest centered on the state’s failure to remit contributory pension funds over the years. A major demand was the suspension of the Ogun State Pension Reform Law, which, according to union leaders, has failed to meet expectations. Reports indicate that a staggering ₦82 billion in pension remittances remains unpaid by successive administrations over the past 17 years.

In response, Governor Abiodun has committed to beginning immediate pension payments for all public workers scheduled to retire starting July 2, 2025, under the Contributory Pension Scheme. He acknowledged that the older pension model was marred by deep structural issues, such as mounting debts, excessive delays, and a heavy reliance on annual budget releases, making it unreliable for retirees.

Governor’s Vision for Pension Reforms

During his address at the committee inauguration ceremony held at his office in Oke-Mosan, Abeokuta, the governor made it clear that pension reform is not merely a goodwill gesture but a constitutional, ethical, and financial obligation. He called on the committee members to maintain integrity, accountability, and transparency in all activities, emphasizing the pivotal role they play in shaping a secure retirement future for civil servants.

Governor Abiodun further clarified that the formation of the committee aligns with Section 19, Paragraph 2 of the Ogun State Pension Reform Law of 2006, and stems from a Memorandum of Action signed with organized labor unions following negotiations.

He stated:

“This committee comprises representatives of both the State Bureau of Pensions and the Bureau of Local Government Pensions. Your work is monumental and purposeful—you are entrusted with the retirement future of thousands of diligent public servants across the state.”

The governor emphasized the moral obligation to ensure retirees who have served Ogun State with dedication enjoy their retirement with dignity and peace of mind.

Labour Leaders Acknowledge Government’s Step

Governor Abiodun also extended his appreciation to labor leaders for their decision to suspend the industrial action. He praised their commitment to dialogue and peaceful resolution, viewing it as a testament to their patriotism and trust in the government’s reform agenda.

In a show of appreciation, Mr. Olufisan Osiyale, who chairs the Local Government Pensions Committee, expressed gratitude to the governor for his confidence in their abilities. He pledged that the committee would work in collaboration with all stakeholders to successfully deliver on their mandate and rebuild trust in the state’s pension system.