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Chuks Udo Okonta
The Lagos State Lottery Board has been commended for contributing 23 per cent for its employees’ pension. The board is presently contributing 15 per cent while employees 8 percent.
The Director-General Lagos State Pension Board (LASPEB) Mrs Folashade Onanuga, gave the commendation at the State’s Pension Board One Day Seminar on the Provisions of the Pension Reform Act in Lagos. She lauded the efforts of the board in putting in place robust plans for its employees.
Onanuga, also urged government agencies with the capacity to contribute more to follow the footsteps of the board.
Section 4 (1) of PRA Act 2014 reviewed upwards, the minimum rate of Pension Contribution from 15 per cent to 18 per cent of monthly emolument, where 8 per cent will be contributed by employee and 10 per cent by the employer. This was done to provide additional benefits to workers’ Retirement Savings Accounts and thereby enhance their monthly pension benefits at retirement.
Section 4 (2) states that the rates of contribution mentioned in subsection (1) of this section may, upon agreement between any employer and employee, be reviewed upwards, from time to time, and the commission shall be notified of such revision.
Section 4 (4) of the Act states that: Notwithstanding any of the provisions of this Act, an employer may agree – (a) on the payment of additional benefits to the employee upon retirement (b) elect to bear the full responsibility of the scheme provided that in such a case, the employer’s contributions shall not be less than 20 per cent of the monthly emoluments of the employee