Ogun releases N6.75 billion for gratuity, additional pension benefits

The Ogun State Government has disbursed N6.75 billion to settle gratuity and Additional Pension Benefits (APB) owed to retired public workers, according to a statement released on Friday in Abeokuta. The funds represent the state's commitment to reducing outstanding pension obligations and enhancing the welfare of retired workers.

The Additional Pension Benefits scheme was designed to bridge the gap between retirement benefits under the old Defined Benefit Scheme (DBS) and the newer Contributory Pension Scheme (CPS). In July 2025, the state began rolling out the Contributory Pension Scheme, which took effect on July 2 of the same year. The latest payment encompasses N2.751 billion released for gratuity to 432 beneficiaries and N4 billion allocated as Additional Pension Benefits to eligible retirees since July 2025.

Olanrewaju Saka, the Head of Service, clarified that the Additional Pension Benefits are distinct from the funds held in retirees' Retirement Savings Accounts (RSAs) and do not diminish those savings. The state government's efforts to address pension-related concerns have been ongoing, following an industrial dispute with organized labor in July 2025 that centered on pension deductions and the transition from the DBS to the contributory system.