The Oyo State government has defended its decision to introduce the Contributory Pension Scheme (CPS) for newly recruited civil servants, insisting that the policy is designed to provide a more reliable and sustainable retirement system for workers.
The government said the scheme, approved by Governor Seyi Makinde, will apply to employees recruited into the state civil service from January 1, 2025, with implementation scheduled to commence on July 1, 2026.
In a statement issued on Friday in Ibadan, the Commissioner for Information, Dotun Oyelade, explained that the decision was based on recommendations from the National Pension Commission (PenCom), which advised that newly employed workers should be enrolled first to allow them sufficient time to build substantial retirement savings.
According to him, workers entering service at this stage could contribute to their Retirement Savings Accounts for nearly three decades before retirement, making the scheme more beneficial and effective in the long term.
He described the CPS as a practical replacement for the old Defined Benefit Scheme, noting that many states have struggled to sustain pension obligations under the previous arrangement.
The commissioner pointed out that Oyo State has already cleared pension obligations up to 2021, while several states across the country continue to grapple with unpaid pension arrears dating back more than a decade.
Addressing concerns that the government was shifting responsibility for pension payments to Pension Fund Administrators, Oyelade dismissed the claims, stressing that the state would continue to meet its statutory obligations under the pension framework.
He said both the government and workers would make contributions as stipulated by the law, adding that the CPS does not absolve the government of its responsibility to retirees.
The commissioner also sought to reassure workers over fears that pension deductions could be withheld or not remitted into their retirement savings accounts.
He noted that existing regulations require pension contributions to be remitted within seven days of salary payment.
According to him, the administration has demonstrated a commitment to compliance with pension laws and will ensure the timely remittance of both employee and employer contributions.
Oyelade further explained that contributors maintain ownership and direct access to their retirement savings accounts, allowing them to independently verify remittances and monitor the growth of their pension funds.
On concerns that future administrations might fail to honour pension commitments, the commissioner said the CPS is protected by legal and regulatory safeguards and remains under the oversight of PenCom, which monitors compliance nationwide.
He added that the framework was deliberately designed to ensure accountability and continuity, regardless of changes in government.
Reaffirming the administration’s commitment to workers’ welfare, Oyelade described Governor Makinde as a leader who has consistently prioritised civil servants and retirees.
He noted that salaries have been paid regularly throughout the governor’s tenure of more than seven years, describing the record as evidence of the administration’s dedication to fulfilling its obligations to workers.
“The CPS remains one of the most reliable mechanisms for securing workers’ financial future after retirement,” Oyelade said, adding that the scheme creates a structured system in which pension contributions accumulated during an employee’s service years are professionally managed while the government continues to play its statutory role.
