The Oyo State Government has defended its decision to commence the implementation of the Contributory Pension Scheme (CPS) with workers recruited in 2025, insisting that the move is designed to guarantee a sustainable and secure retirement system for civil servants.
The government, in a statement on Friday by the Commissioner for Information, Prince Dotun Oyelade, addressed concerns raised by some workers regarding the rollout of the pension scheme.
According to Oyelade, the decision was based on recommendations by the National Pension Commission (PenCom), which advised that newly recruited workers should be enrolled first to allow them contribute over a longer period and accumulate substantial retirement savings before exiting service.
He explained that the CPS was introduced nationwide as a more sustainable alternative to the traditional Defined Benefit Scheme, which has become increasingly difficult for many state governments to sustain due to mounting pension liabilities.
The commissioner noted that while Oyo State had successfully settled pension obligations up to 2021, several other states were still grappling with pension arrears dating back to 2011, a situation he said highlighted the challenges associated with the old pension system.
Oyelade dismissed claims that the government was shifting responsibility for pension payments to Pension Fund Administrators (PFAs), stressing that the state remained fully 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 fears that pension deductions could be withheld or not remitted into workers’ Retirement Savings Accounts (RSAs), the commissioner said the Pension Reform Act mandates employers to remit pension contributions within seven days of salary payment.
He added that the administration of Governor Seyi Makinde had demonstrated a strong commitment to compliance with the law and would continue to ensure the prompt remittance of both employee and employer contributions.
Oyelade further explained that every worker owns and has direct access to his or her Retirement Savings Account, making the scheme transparent and enabling contributors to independently monitor and verify remittances.
On concerns that future administrations might fail to honour pension obligations, the commissioner said the CPS is backed by law and subject to the oversight of PenCom, which monitors compliance and enforces pension regulations across the country.
According to him, the legal and regulatory framework governing the scheme was specifically designed to ensure accountability, transparency and continuity beyond the tenure of any particular administration.
The commissioner also expressed confidence in the current administration’s commitment to workers’ welfare, describing Governor Makinde as a labour-friendly leader who has consistently prioritised the well-being of civil servants.
He noted that salaries had been paid regularly under the administration for more than seven years, a record he attributed to the governor’s sense of responsibility and commitment to public trust.
Oyelade reassured workers that the Contributory Pension Scheme does not absolve government of responsibility towards retirees after service.
Rather, he said, the scheme provides a structured framework through which pension contributions accumulated during an employee’s years of service are professionally managed in Retirement Savings Accounts, while government continues to fulfil its statutory obligations.
He maintained that the CPS remains one of the most reliable and sustainable mechanisms for guaranteeing financial security for workers in retirement.
The Oyo State Government urged workers to embrace the scheme, assuring them that all necessary safeguards were in place to protect their contributions and ensure a stable income after retirement.