Press Releases

Fashola Presents Bond Certificates Valued At N887.4M To 217 Retirees

Feb 17, 2011 - Lagos State Governor, Mr Babatunde Fashola (SAN) on Thursday presented the second batch of 217 retirees of the State Government with their Bond Certificates valued at Eight Hundred and Eighty Seven Million, Three Hundred and Sixty Two Thousand Six Hundred Naira and Fifty Six Kobo (N887,362,600.56).

Speaking at the event which took place at the Adeyemi Bero Auditorium, Alausa, the Governor said what the retirees received were values of their accrued pensions as at 31 March 2007, adding that the Bond Values were actuarially determined by the international firm of Alexander Forbes Consulting limited, a firm engaged by the State Government.

Governor Fashola explained that the bond values have already been redeemed and paid into the individual retirement savings accounts of the retirees including the invested contributions by the employee and the State from April 2007.

The governor advised them to engage their pension fund administrators on what they would receive to jump start them into a life of financial independence after a life time of public service and also compute what their monthly pension would be.

He recalled that on 28th October last year, the State blazed the trail with the presentation of retirement Bond Certificates to 103 retirees with the redeemed value of N412,878,986.80 being paid into the Retirement Savings accounts.

"As we speak today, that first batch of retirees have collected their lump sum which you refer to as gratuity, whilst monthly, not later than on the 26th of every month, their pension (a programmed withdrawal amount agreed to by the retiree with his /her pension fund administrator is credited into their bank accounts', the Governor said.

He noted that the ease with which the scheme is being administered has gone a long way in assuring retirees that the contributory pension scheme is the best thing that has happened to employees in the State with respect to their retirement benefits.

"You will recall that across the country, retirees went through harrowing experiences under the old scheme before their files were processed and their entitlements could be paid. Pensioners under that scheme were also subjected to rigorous verification exercise and some even died whilst waiting to be attended to", Governor Fashola said.

"Lagos State Government was the first state to subscribe to the contributory pension scheme; the first state to establish a fully operational pension commission to ensure that the interest of every public servant at retirement was protected and the first in the whole of Nigeria to issue retirement Bonds to retirees", he said.

The Governor asserted that what was happening "is a clear evidence of the genuine intention of the government towards improvement of the lives of those who have worked diligently in the service of the State".

The Governor commended "the trail blazing Lagos State Pension Commission" (LASPEC) for the diligence with which it has approached the process of managing the change as they had the herculean task of ensuring proper enlightenment of all civil servants in the State to embrace the policy and build confidence in the scheme.

He said the efforts have clearly paid off as compliance level increased significantly with the number of registered employees increasing from 82,867 to 110,000 while 156 enrolled retirees who had their contributions wrongly deducted from their salaries were refunded by the Pension Fund Administrators (PFAs) and the accounts subsequently closed.

Governor Fashola said: "Over 28,000 teaching staff of SUBEB who previously had no group life cover arrangement as prescribed by the law are now covered and in the event of death whilst in service, their dependants will in addition to the accrued pension rights, along with State and employee's contributions with any accrued interest earning will also receive 350percent of the deceased annual total emolument consisting of basic salary, housing and transport allowances.

He also said the official website of the Commission would soon be linked to that of the Lagos State Government so that from the State Government's official website people could link up to the Commission to make enquiries on any pension matter.

Speaking earlier, the Director General of the commission, Mr Kunle Hussain, said the presentation of the second set of 217 retirees' retirement bond certificate is a clear demonstration that the scheme can truly work.

He added that since the pension reform law was enacted in 2007, Lagos has continued to set the pace culminating in the handling of the issue of those who have served the State conscientiously at their prime.

He commended Governor Babatunde Fashola (SAN) for demonstrating an uncommon passion for the issue of welfare of workers.

The Governor later presented the retirement bond certificates to some of the beneficiaries at the ceremony which also had in attendance the Head of service, Mr Adesegun Ogunlewe and chairman of LASPEC, Mr Tunde Dabiri and other directors.