The Edo State Government has assured pensioners recently migrated from the Contributory Pension Scheme (CPS) to the Defined Benefit Scheme (DBS) of the refund of their eight per cent personal pension contributions. This assurance was given by the Permanent Secretary of the Edo State Pension Bureau, Mr. Washington Abbe, during an interview with journalists in Benin City. He addressed concerns surrounding the transition and the protection of affected workers’ interests.
According to Abbe, the State Government was committed to ensuring that no pensioner was disadvantaged by the migration process. He assured that the contributions made by affected workers under the CPS would be refunded in line with the Government’s decision to transfer them to the DBS. The Permanent Secretary also clarified the status of the 10 per cent matching contributions made by the State Government under the CPS arrangement.
Abbe explained that the Government’s matching contributions would be refunded to the State and subsequently reallocated towards the settlement of outstanding pension liabilities. This move aims to ensure that the pension transition process is conducted transparently and efficiently, protecting the interests of affected workers and pensioners across Edo State.
The Permanent Secretary attributed the delay in the State Government’s remittance of workers’ CPS contributions to a new payment process introduced by the National Pension Commission (PenCom) for state governments and Pension Fund Administrators (PFAs). This new arrangement was introduced in January 2025, causing a temporary halt in remittances.
Under the new arrangement, PenCom appointed an intermediary to facilitate the remittance of pension contributions and protect employees’ funds from loss or misallocation. Abbe said state governments were required to reconcile the PINs of all employees before pension contributions could be processed and transferred through the designated intermediary.
Abbe assured that the funds were ready for remittance, noting that the Edo State Government was awaiting confirmation from PenCom on the safety and security of the funds before proceeding with the payment through the intermediary. The Edo State Government is committed to ensuring a smooth transition process for its pensioners.
The Edo State Government’s decision to transfer pensioners to the DBS aims to provide a more secure and reliable pension system. With the assurance of refund of personal pension contributions, pensioners can expect a more stable financial future. The government’s efforts to address concerns and provide clarity on the transition process have been welcomed by pensioners and workers across the state.
Key points
- Edo State Government to refund 8% personal pension contributions to DBS pensioners
- Government's matching contributions to be refunded and reallocated to outstanding pension liabilities
- New payment process introduced by PenCom caused delay in remittance of pension contributions
