The Ekiti State Head of Service, Dr. Folakemi Olomojobi, has called on pension desk officers to ensure adequate advocacy and sensitization on the migration from the defined benefits scheme to the contributory pension scheme to achieve a more sustainable pension management system for Ekiti State public servants.
Olomojobi made the clarion call at a one-day sensitization programme organized for pension desk officers across the state. The programme provided participants with insights into the merits of the migration for public servants, particularly those retiring from service from January 1st, 2029, onward, as they transition from the defined benefits pension scheme to the contributory pension scheme in Ado Ekiti.
The Head of Service submitted that this migration has become inevitable due to the shortcomings of the defined benefits model, such as the increasing number of retirees, longer life expectancies, and fluctuating economic realities, which have placed an unsustainable burden on government finances.
According to a press release by director press office of the head of service Mr.Festus Abosede, Dr.Olomojobi noted that the defined benefits pension scheme placed the sole responsibility for the payment of pensions on the government, leading to increasing pension liabilities. This burden has necessitated a reevaluation of the system to address the longstanding backlog of unpaid gratuities and pensions.
Speaking further, the Head of Service explained that the contributory pension scheme was designed to address these challenges by distributing the responsibility of pension funding between the employer and the employee. She added that the scheme is not only more sustainable but is also expected to be more transparent, giving public servants informed control over their retirement savings.
She stressed the need for all hands to be on deck, as this migration is a step toward a more secure and sustainable future for public servants.
“As pension desk officers, you are the frontline workers in this transition. Your role is crucial in ensuring that this migration is seamless and that public servants are adequately informed about the benefits and processes involved. The success of the contributory pension scheme relies heavily on this understanding, and this sensitization programme is designed to equip you with the knowledge and tools to facilitate this transition effectively,” she said.
Olomojobi appreciated the commitment of the Government of Ekiti State, led by His Excellency, Governor Biodun Abayomi Oyebanji, for his unmatched efforts in defraying the state’s gratuity debts. She noted that, to date, the current gratuity indebtedness exceeds ₦20 billion, with Mr. Governor making the highest payment on gratuity debt, estimated at over ₦4 billion.
In her address, the Permanent Secretary of the Ekiti State Pension Commission, Mrs. Omotola Faseluka, emphasized that the gathering was vital, serving the purpose of enlightening participants on the operations of the contributory pension scheme. She also encouraged pension desk officers to see themselves as ambassadors of the scheme, promoting it as the solution to the challenges faced by the defined benefits pension scheme.
She informed attendees that 112 retirees had already received their retirement benefits promptly under the contributory pension scheme. Faseluka recalled that the scheme was introduced into the Ekiti State public service on January 1st, 2010, with contributions beginning on January 1st, 2017.
The Permanent Secretary assured attendees of the Ekiti State Pension Commission’s commitment to providing the necessary support to ensure a smooth transition, urging them to seek clarification on any issues of concern.
Present at the event were Mr. Odunayo Kayode, Special Assistant to the Governor in the Office of Transformation and Service Delivery; Mrs. Selinah Toba-Ojo, Permanent Secretary of the Local Government Service Commission; Mr. Foluso Ebenezer Akinwumi, Permanent Secretary of the Local Government Pension Transition Arrangement Department; Mr. Francis Bamisaye Omotosho, Permanent Secretary of the Pension Transition Arrangement Department; and Mr. Rotimi Gabriel Akomolede, Permanent Secretary of the Local Government Loans Board.
