From left: Chairman, House Committee on Establishments, Training and Pension, Hon Adedayo Famakinwa, Commissioner Establishments, Training and Pension, Dr Akintola Benson Oke presenting a bond certificate to a retiree; Director-General, Lagos State Pension Commission, Mrs Folashade Onanuga at the event.
COMMITMENT TO POST-SERVICE WELFARE: THE LAGOS STATE GOVERNMENT’S EXAMPLE UNDER GOVERNOR AKINWUNMI AMBODE
BEING THE KEYNOTE ADDRESS DELIVERED BY DR. AKINTOLA, BENSON OKE, FCArb, THE HONOURABLE COMMISSIONER, LAGOS STATE MINISTRY OF ESTABLISHMENTS, TRAINING AND PENSIONS AT THE PRESENTATION OF RETIREMENT BENEFIT BOND CERTIFICATES TO THE 38TH BATCH OF RETIREES FROM THE LAGOS STATE PUBLIC SERVICE ON FRIDAY, 28THAPRIL, 2017.
Protocol
The Chairman & Members of the Lagos State House of Assembly Committee on Establishments, Training & Pensions;
The Acting Head of Service;
The Director-General and Officers of LASPEC;
The Representatives of the Pension Fund Administrators and Insurance Companies;
Our Retirees, the Celebrants of today;
Gentlemen of the Press;
Distinguished Ladies and gentlemen.
1. William A. Ward is credited with the following epigram: “Before you speak, listen. Before you write, think. Before you spend, earn. Before you invest, investigate. Before you criticize, wait. Before you pray, forgive. Before you quit, try. Before you retire, save.” (Emphasis mine). Thankfully, the Lagos State Government under the able leadership of Governor Akinwunmi Ambode has helped and continues to help public officers adhere to this invaluable advice as a result of its commitment to ‘all-round’ welfare of its officers.
2. Indeed, on this occasion of the 38th presentation of Retirement Benefit Bond Certificates to retirees under the Contributory Pension Scheme created Section 3 of the Lagos State Contributory Pension Scheme law of 2007 (hereinafter referred to as “the Law”), it is important to pause and enumerate how the Lagos State Government under the amiable Governor Akinwunmi Ambode has consistently demonstrated its commitment to the post-service welfare of its officers.
3. The vehicle for demonstrating this commitment has been the Lagos State Pension Commission (LASPEC) which was established as a corporate entity to regulate, supervise and ensure the effective administration of pension matters in the Lagos State Public Service. The passage of the law itself was in response to the new model and standards of pension administration formulated under the federal Pension Reform Act 2004. Without an iota of doubt, LASPEC has performed brilliantly and commendably in discharging the trust entrusted to its care.
4. As a matter of fact, before the 2004 Federal Pension Reform Act, most state governments and companies in the Federal Republic of Nigeria operated under the Defined Benefits Pension Scheme, popularly referred to as the ‘Pay as You Go’ scheme. This scheme relied on methods that utilized the parameters of length of service to determine the final emoluments of employees. The benefits were thus easily calculated by employees. Broadly speaking, employees who had spent five to nine years in service were entitled to a lump sum payment referred to as gratuity, while those who had spent ten years and more were entitled to both the gratuity and monthly pension payment.
5. That model woefully failed as a result of the inability or wilful refusal of employers to budget for and/or properly utilize funds to service pension obligations. At this point, we must pause to reiterate that it is morally reprehensible for any employer to neglect or refuse to plan and cater for the retirement benefits of its employees who gave the prime of their active years to the employing institution.
6. This is an area where the Lagos State Government, through the instrumentality of LASPEC, has demonstrated its virtuous moral compass. Under the administration of His Excellency, Mr Akinwunmi Ambode, in particular, the Lagos State Government has faithfully honoured its obligations under the Lagos State Contributory Pension Scheme Law (“the Law”). Such that, today, we are gathered to witness the presentation of bond certificates to the 38th batch of retirees from the Lagos State Public Service. This, indeed, is a milestone for our dear Lagos State.
7. Furthermore, it is a positive history that, the Lagos State Government has been consistently winning the National Pension Commission’s award for the Best Pensions Compliant State in the Federation. We aim to maintain this rating by continuing and improving on the timely payment of all pensions and other applicable benefits to our retiring workers upon disengagement from service.
8. LASPEC has also been responsible for the fulfilment of the wider objectives of the Law as espoused under section 4 of the Law. These include:
(a). the assistance of all persons in the employment of the State Government to save towards their retirement;
(b). ensuring that persons who leave or retire from the Public Service of the State receive their terminal or retirement benefits as and when due;
(c). establishing and monitoring the adherence to the rules and regulations for the administration and payment of retirement benefits in the Public Service of the State;
(d). establishment of the group life policy in respect of death benefits for employees who die while in service;
(e). administration of Retirement Bonds for employees with past service benefits and;
(f). the establishment and maintenance of the Redemption Fund from which the liability of the bond payments would be made.
9. In the implementation of these schemes by the Lagos State Government through LASPEC, it is on record that the following successes have been recorded:
(a). In spite of the onerous funding obligations under the Contributory Pension Scheme, the administration of Governor Akinwunmi Ambode has been dogged in meeting the funding obligations;
(b). The State Government has never failed to remit monthly contributions into the Retirement Savings Account of workers and, as at March, 2017, about N78,592 billion had been credited into employees’ Retirees Savings Accounts maintained by our 10 (Ten) Pension Fund Administrators;
(c). The Lagos State Government has also been consistent in setting aside funds for the payment of accrued rights as provided for in the Pension Reform Law such that the State government has paid accrued pension rights of about N61 billion since the commencement of the Retirement Benefit Bond Certificate Presentations in 2010; and
(d). Today, a total number of 311 retirees will have their Retirement Savings Accounts credited with accrued pension rights of N1.6 billion, made up of gratuity and pension benefits under the Defined Benefit scheme for employees who transited into the Defined Contributory Scheme.
10. With the institution of such elaborate schemes by the Lagos State Government, it is not surprising that retiring public officers now look forward to retirement with more confidence and joy. This is how it should be. Furthermore, let me assure you that the Lagos State Government through LASPEC will continue to ensure that public service retirees not only get what is due to them statutorily, but also continue to receive, through other agencies and programmes further and additional support and assistance that will add value to their lives in retirement. Among others, this commitment is in fulfilment of the declaration by His Excellency who, in his Inaugural Speech said: “I shall run an open government of inclusion that will not leave anybody behind. No matter your age, sex, tribe or any other status as long as you reside in Lagos, we will make Lagos work for you”.
11. Thus, our retirees can take joy in the fact that they are not, and will not be left behind in the scheme of things by the Lagos State Government under Governor Akinwunmi Ambode. On this note, let me emphasise that I am delighted to be part of your joy today. You have all served in various capacities and sectors to make life better for the people of Lagos State and, in retirement, our commitment is to assist you in making the right choices that will enable the attainment of financial comfort during retirement.
12. As you retire, I wish to advise you to embrace the joys and challenges of this new phase of life. One thing that will stand you in good stead is the readiness to take advise from competent and reliable sources. In this respect, please do not hesitate to contact LASPEC or even the Ministry of Establishments, Training and Pensions should you require clarifications or advice regarding the modalities surrounding your retirement matters.
13. Another piece of advice is that you should strive to embrace healthy habits in terms of diet and exercise regimes. This will give you the benefits of healthy living that make retirement even more beneficial.
14. On behalf of His Excellency, Mr. Akinwunmi Ambode, the Executive Governor of Lagos State and on behalf of the Ministry of establishments, Training and Pensions, I wish to once again congratulate all the retirees benefitting from the presentation of bonds today. I assure you that Lagos State will continue to lead and demonstrate commitment to retirees’ welfare. I also wish to commend the leadership and staff of LASPEC for fulfilling the mandate of the Law creditably.
15. I also join you in appreciating God for His protection and mercy which has sustained you from when you began your careers as civil servants till you bade farewell to the service of the state. I know that there is always considerable anxiety at the time of retirement and I urge you to properly manage this anxiety by having the right perspective. On this note, I wish to conclude this address by quoting Sophia Lauren who said, “[T]here is a fountain of youth: it is your mind, your talents, the creativity you bring to your life and the lives of people you love. When you learn to tap this source, you will truly have defeated age.”
16. Thank you for your kind attention and congratulations. May the years ahead be blissful.
Dr. Akintola, Benson Oke, FCArb
Itesiwaju Ipinle Eko lo je wa logun
