Newly recruited Oyo civil servants reject contributory pension scheme
Some newly recruited civil servants in Oyo State have appealed to Governor Seyi Makinde to exempt them from the newly reintroduced Contributory Pension Scheme (CPS), arguing that the policy would worsen the economic challenges facing workers. The affected workers, who joined the state civil service in January 2025, made their position known in a petition titled “Save Our Souls” addressed to the governor and made available to journalists in Ibadan on Sunday.
The development comes days after the Oyo State Government announced the reintroduction of the contributory pension scheme for newly employed civil servants as part of efforts to ensure a sustainable pension system in the state. However, the workers urged the government to allow them to remain under the pension arrangement that was in place at the time of their employment, insisting that they accepted their appointments based on the existing conditions of service.
Workers express concerns over policy timing
In the petition, the civil servants acknowledged the government’s intention to strengthen pension administration but expressed concerns over the timing of the policy’s implementation. “We have carefully studied the circular letter concerning the re-commencement of the Contributory Pension Scheme for Oyo State civil servants. While we acknowledge the noble intention behind the policy and the government’s commitment to ensuring a sustainable pension system, we respectfully seek your compassionate consideration regarding its application to officers employed into the Oyo State Civil Service in January 2025,” the petition read.
According to the workers, they joined the service when the previous pension arrangement was still operational and applicable to public servants in the state. They maintained that their employment was accepted with the understanding that their pension benefits and other conditions of service would be similar to those enjoyed by existing civil servants.
Petitioners call for fairness and uniformity
The petitioners argued that subjecting them to a different pension structure after their recruitment could affect morale and create disparities within the workforce. They further appealed to Governor Makinde to permit officers recruited in January 2025 to remain under the former pension scheme, describing the move as a demonstration of fairness and justice.
The workers stated that such a decision would promote industrial harmony, boost confidence in government policies and recognise the peculiar circumstances surrounding their recruitment. “We respectfully submit that allowing officers employed in January 2025 to remain under the pension arrangement that existed before the re-introduction of the CPS would promote industrial harmony, strengthen morale and reinforce workers’ confidence in the government’s commitment to fairness and justice,” they stated.
They added that retaining them under the previous arrangement would help maintain uniformity among officers serving within the same public service system.
Government defends reintroduction of CPS
The Oyo State Government has defended its decision to commence the Contributory Pension Scheme (CPS) with workers recruited in 2025, saying the move is aimed at guaranteeing a sustainable and predictable retirement system for civil servants. In a statement issued by the Commissioner for Information, Prince Dotun Oyelade, he addressed concerns raised by workers over the implementation of the scheme.
According to the commissioner, the decision followed recommendations from the National Pension Commission (PenCom), which urged that newly recruited workers should be enrolled first to enable them contribute over a longer period and build substantial retirement savings before retirement, which spans about three decades in many instances. He explained that the Contributory Pension Scheme was introduced as a more sustainable alternative to the old Defined Benefit Scheme, which many states have found difficult to maintain.
Oyelade noted that while Oyo State has been able to settle pension obligations up to 2021, some states are still struggling to pay pension arrears dating back to 2011, underscoring the challenges associated with the old system.
Government allays fears over remittance and transparency
Responding to concerns that the government was transferring responsibility for pension payments to Pension Fund Administrators (PFAs), the commissioner dismissed the claim, insisting that the state remains fully committed to the welfare of its workers and retirees. “The government is not abdicating its responsibility. Under the CPS, government will continue to make its statutory contributions as required by law,” he said.
Also, on fears that pension deductions may not be remitted into workers’ Retirement Savings Accounts (RSAs), Oyelade stated that the law mandates remittance of contributions within seven days of salary payment. He added that the current administration has demonstrated its commitment to complying with the law and ensuring prompt remittance of both workers’ and government’s contributions.
The commissioner explained further that each worker owns and has access to his or her Retirement Savings Account, making the process transparent and allowing contributors to independently verify remittances.
Legal framework ensures continuity, says commissioner
Addressing concerns about possible defaults by future administrations, Prince Oyelade said the scheme is backed by law and regulated by PenCom, which monitors compliance and provides oversight to ensure pension obligations are met. According to him, the legal and regulatory framework of the CPS was designed to promote accountability and continuity beyond any particular administration.
Oyelade also expressed confidence in the commitment of the current administration to workers’ welfare, describing Governor Makinde as a workers’ friendly governor who places the welfare of civil servants at the heart of his administration. He said the governor has consistently paid workers’ salaries for more than seven years, not because of any specific law compelling him to do so, but out of a sense of public trust and responsibility.
He also reassured workers that the CPS does not remove government’s responsibility for retirees after leaving service. Rather, he said, the scheme establishes a structured system in which pension contributions accumulated throughout an employee’s years of service are professionally managed in a Retirement Savings Account, while government continues to fulfil its statutory obligations. Oyelade maintained that the CPS remains one of the most reliable mechanisms for securing workers’ financial future after retirement.
