The Oyo State Government has defended its decision to commence the Contributory Pension Scheme (CPS) with workers recruited in 2025, assuring civil servants that the initiative is designed to guarantee a sustainable and secure retirement system.
The Commissioner for Information, Prince Dotun Oyelade, gave the assurance in a statement issued on Friday, addressing concerns raised by workers over the implementation of the pension scheme.
Oyelade explained that the decision followed recommendations by the National Pension Commission (PenCom), which advised that newly recruited workers should be enrolled first to allow them sufficient time to build substantial retirement savings through regular contributions over the course of their careers.
According to him, the Contributory Pension Scheme was introduced as a more sustainable alternative to the old Defined Benefit Scheme, which has become increasingly difficult for many states to sustain.
He noted that while Oyo State has successfully settled pension obligations up to 2021, several other states are still grappling with pension arrears dating back to 2011, highlighting the challenges associated with the previous pension model.
The commissioner dismissed claims that the state government was shifting responsibility for pension payments to Pension Fund Administrators (PFAs), stressing that the government remains committed to the welfare of both serving and retired workers.
“The government is not abdicating its responsibility. Under the CPS, government will continue to make its statutory contributions as required by law,” he stated.
Addressing concerns over possible non-remittance of pension deductions into workers’ Retirement Savings Accounts (RSAs), Oyelade said the law mandates that contributions be remitted within seven days of salary payment.
He added that the current administration has demonstrated its commitment to complying with the law by ensuring prompt remittance of both employees’ and government contributions.
The commissioner further explained that contributors have direct access to their Retirement Savings Accounts, enabling them to independently verify remittances and monitor the status of their savings.
On fears that future administrations could default in meeting pension obligations, Oyelade said the CPS is backed by legislation and regulated by the National Pension Commission, which provides oversight and monitors compliance.
He maintained that the legal and regulatory framework governing the scheme was designed to ensure accountability and continuity beyond any particular administration.
Oyelade also described Governor Seyi Makinde as a worker-friendly leader who has consistently prioritised the welfare of civil servants.
According to him, the governor has maintained regular salary payments for more than seven years, demonstrating a strong sense of public trust and responsibility.
He reassured workers that the Contributory Pension Scheme does not relieve government of its responsibility to retirees but rather provides a structured and transparent system in which pension contributions are professionally managed throughout an employee’s years of service.
The commissioner expressed confidence that the CPS remains one of the most reliable mechanisms for securing the financial future of workers after retirement.
