OYO APPROVES CONTRIBUTORY PENSION SCHEME WITH 12% GOVERNMENT FUNDING

The Oyo State Government has approved the implementation of a new contributory pension scheme under which the state will contribute 12 per cent of each employee’s monthly salary, while workers will contribute 8 per cent.
The scheme is aimed at strengthening retirement benefits for public servants and ensuring the prompt payment of pensions after retirement.
According to the state government, the initiative reflects its commitment to improving workers’ welfare and guaranteeing financial security for civil servants after years of service.
Officials said the new arrangement aligns with the provisions of the Pension Reform Act and is expected to enhance transparency, accountability, and sustainability in the management of pension funds.
The government noted that the increased employer contribution demonstrates its resolve to protect the interests of workers while ensuring the long-term viability of the pension system.
Stakeholders have welcomed the development, describing it as a positive step toward strengthening social security and boosting confidence among public sector employees.
The scheme is expected to take effect in line with the implementation guidelines issued by the state government.