Oyo Strengthens Workers’ Future With CPS Implementation, Approves 12% Employer Contribution
The Oyo State Government has reaffirmed its commitment to the welfare and future security of workers with the commencement of the Contributory Pension Scheme (CPS) for officers employed into the state’s civil and public service from January 1, 2025.
The Chairman of the Oyo State Post Service Board, Hon. Tunji Rafiu Adekunle, disclosed that the scheme will officially take effect on July 1, 2026, during a stakeholders’ engagement with Pension Fund Administrators (PFAs) held in Ibadan.
According to him, all necessary arrangements have been concluded to ensure a smooth and successful rollout of the scheme, which is designed to provide a more reliable, transparent, and sustainable pension system for public servants in the state.
Hon. Adekunle described the implementation as a significant milestone in the state government’s efforts to safeguard the future of its workforce, stressing that the scheme will guarantee individual Retirement Savings Accounts (RSAs), enhance transparency, and ensure portability of pension benefits across employments.
“This reform is about the future of our workforce. It ensures that every worker can retire with dignity and financial security,” he said.
The Chairman also addressed concerns raised by some newly recruited officers, explaining that the phased implementation based on employment dates is a standard practice in public sector reforms and is not intended to disadvantage any category of workers.
In his remarks, the Permanent Secretary, Post Service Board, Rev. Victor Adesola, noted that the Contributory Pension Scheme would address longstanding challenges associated with the Defined Benefits Scheme, particularly delays in the payment of retirement entitlements.
“The Contributory Pension Scheme introduces a more reliable, transparent and sustainable system that gives workers confidence in their retirement planning,” he stated.
Also speaking, the Permanent Secretary, Ministry of Establishments and Training, Alhaji H.A. Bello, said the reform was the outcome of extensive consultations involving relevant ministries, pension administrators, labour representatives and regulatory agencies.
He added that the CPS would operate alongside the existing Defined Benefits Scheme while gradually strengthening the state’s pension framework and ensuring long-term sustainability.
The stakeholders’ meeting brought together officials from Ministries, Departments and Agencies (MDAs), labour unions and representatives of Pension Fund Administrators to finalise operational strategies ahead of the scheme’s commencement.
The implementation of the CPS marks another step by the Oyo State Government towards promoting workers’ welfare, securing retirement benefits and building a more sustainable future for public servants.
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