Oyo govt begins contributory pension scheme July 1

The Oyo State Government has fixed July 1, 2026, for the commencement of the Contributory Pension Scheme (CPS) for officers employed in the state’s civil and public service from January 1, 2025.

…approves 12% employer contribution

Tunji Rafiu Adekunle, the chairman of the Oyo State Post Service Board, who disclosed this during a stakeholders’ engagement with Pension Fund Administrators (PFAs) held in Ibadan, noted that all necessary arrangements have been concluded for a seamless rollout.

Adekunle described the development as a major step towards securing the future of workers, noting that the scheme will ensure a more reliable and sustainable pension system for public servants in the state.

According to him, the Oyo State government will contribute 12 per cent. In comparison, employees will contribute 8 per cent of their monthly earnings, indicating the government’s commitment to workers’ welfare while also exceeding the 10% employer contribution adopted at the federal level.

He assured workers that the CPS is designed to strengthen, and not diminish, their welfare, stressing that the scheme will provide individual Retirement Savings Accounts (RSAs), ensure transparency, and guarantee portability of benefits across employment.

“This reform is about the future of our workforce. It ensures that every worker can retire with dignity and financial security,” he said.

The chairman further acknowledged concerns raised by some newly recruited officers and explained that implementation timelines based on employment dates are standard in public sector reforms and are not intended to disadvantage any group.

Victor Adesola, the Permanent Secretary, Post Service Board, in his remarks, noted that the new scheme will address longstanding challenges associated with the Defined Benefits Scheme, including delays in the payment of entitlements.

According to him, the Contributory Pension Scheme introduces a more reliable, transparent and sustainable system that gives workers confidence in their retirement planning.

H.A. Bello, the Permanent Secretary, Ministry of Establishments and Training, also speaking, said the reform followed extensive consultations among key stakeholders, including relevant ministries, pension administrators and regulatory bodies.

He added that the scheme would run alongside the existing Defined Benefits Scheme, while gradually building a more sustainable pension structure for the state.

The meeting brought together officials from ministries, departments and agencies; labour representatives, including representatives of pension fund administrators; to finalise operational strategies ahead of the scheme’s take-off.