The Edo State Government conducted a 3-day workshop last week to sensitize the first batch of intended retirees to benefit from the state’s Contributory Pension Scheme.
Abbe Osaro Washington, the Edo State Pension Bureau’s Functioning Permanent Secretary/Chairman, said the training was aimed at preparing workers for their migration into the program by 2022.
“The three-day program is to enable Edo State Government to sensitize those intending retirees who will be disengaging from the system between January and March 2022,” he said, adding that “these intending retirees will be the first to benefit from the new Contributory Pension Scheme introduced by Edo State Government in January 2017.”
“This is the first group of retirees, who will be migrated in two months,” he stated. They are the system’s litmus test. The purpose of the workshop is to inform them about the challenges they will face once they retire and to reassure them that the system is not a death sentence. They would be the first to experience the system and have no idea what it entails for them, which is why this sensitization is necessary.”
“The inadequacies of the previous system prompted the Federal Government to seek out another credible method,” Washington continued, “resulting in the current pension system in use in this country.”
“Over time, pensioners retire on a monthly basis without receiving a gratuity and get only a sporadic pension.” Workers can now save for their eventual exit from the system under this new arrangement. Workers are requested to contribute 8% of their monthly wage, with the state adding a 10% matching fund, bringing the total to 18%.”
“This system enables retirees to have direct communication with their pension fund administrators by producing letters of disengagement, and there would be smooth movement from salary to pension payment by the same month,” the PS said, citing some of the new system’s benefits.
“It’s a win-win situation for all involved in the scheme as the Government will continue to fulfill its 10 percent matching fund. These are the first set of intending retirees that will be migrating into the contributory pension scheme.”
Addressing the intending retirees, the guest speaker, Mr. Adebola Bello, who spoke on ‘Retirement Benefits Under the Contributory Pension Scheme,’ said the scheme came with modalities, which include transparency and uniform regulation.
“From day one, the retiree’s programme is for 18 years. It doesn’t mean that after 18 years the retiree doesn’t have money there again. There will be funds since the fund is being invested. Returns on investment give value to the Contributory Pension Scheme,” he added.