The Oyo State Government has reaffirmed its commitment to safeguarding workers’ welfare and retirement security by implementing the Contributory Pension Scheme (CPS), which is scheduled to commence on July 1, 2025.
Speaking at a stakeholders’ meeting between the Oyo State Post Service Board and Pension Fund Administrators (PFAs) in Ibadan, the Chairman of the Oyo State Post Service Board, Hon. Tunji Rafiu Adekunle, JP, described the initiative as a landmark reform aimed at ensuring sustainable pension administration and long-term financial security for public servants.
Hon. Adekunle commended Governor Seyi Makinde, FNSE, for his visionary leadership in approving the commencement of the scheme despite concerns expressed in some quarters.
He explained that the CPS was not designed to diminish the rights or welfare of workers but to guarantee retirement security for both present and future generations of civil and public servants in the state.
According to him, every major policy reform requires a clear commencement date and implementation framework to ensure administrative consistency, legal compliance and long-term financial sustainability.
“The Contributory Pension Scheme provides individually owned Retirement Savings Accounts, ensures transparency in pension fund management, guarantees portability of benefits and protects workers’ retirement savings through professionally regulated Pension Fund Administrators and custodians under the supervision of the National Pension Commission (PenCom),” he said.
The Chairman acknowledged concerns raised by some recently recruited officers regarding the commencement structure but stressed that the government’s decision was carefully considered and intended to ensure the successful implementation of the scheme.
He noted that while distinctions based on dates of recruitment may arise during policy implementation, such measures are not intended to disadvantage any category of workers.
Adekunle further assured workers that the CPS is a globally accepted and nationally recognised pension model designed to help employees build secure retirement savings throughout their years of service while reducing the burden of unfunded pension liabilities on government.
He urged participants at the meeting to contribute constructively by sharing experiences, identifying possible challenges and proposing practical solutions that would facilitate the seamless rollout of the scheme in Oyo State.
“Our collective objective is to establish a pension administration system that protects workers, inspires public confidence and serves as a model for other states across the federation,” he added.
In his welcome address, the Permanent Secretary of the Oyo State Post Service Board, Rev. Victor Adesola, described the meeting as a significant milestone in the state’s efforts to establish a reliable, predictable and sustainable pension system.
He stated that the CPS would apply to officers employed in the state’s civil and public service from January 1, 2025, and would provide retirement benefits through regular contributions from both the employer and employees.
Adesola noted that the traditional Defined Benefits Scheme had become increasingly difficult to sustain, with many retirees experiencing prolonged delays and hardship before accessing their entitlements.
“The Contributory Pension Scheme is designed to address many of the challenges associated with the old pension system by promoting financial stability, accountability and confidence in retirement planning,” he said.
He commended Governor Makinde for approving the scheme and expressed appreciation to the Pension Fund Administrators, the Office of the Head of Service, the Ministry of Establishments and Training and other relevant stakeholders for their support towards its implementation.
Also speaking, the Permanent Secretary, Ministry of Establishments and Training, Alhaji H.A. Bello, delivered the goodwill message of the Commissioner for Establishments and Traini