Fayose to implement Contributory Pension scheme

The Ekiti State Government said it is set to commence the implementation of the Contributory Pension Scheme (CPS).

The Government said it is with the aim of surmounting the challenges of the traditional Defined Benefit Scheme (DBS).

Dr. Olugbenga Faseluka, Head of Service, at Ikogosi Ekiti, at an enlightenment workshop, on the implementation of the scheme, noted that the inability of government to effectively cope with the huge funding requirement leading to subsequent accumulation of debts on pension and gratuities had made CPS as a preferred option for the payment of exit benefit in the public service.

Faseluka emphasised an urgent need to take proactive measures to manage the inevitable future payment of pension and gratuities of upcoming civil servants, adding that the switch to the CPS would eliminate the burden on government as well as ensure prompt payment of due allowances to beneficiaries.

“The DBS has been bedeviled with so many challenges, majorly the inability of government to effectively cope with the huge funding requirement coupled with the mismanagement of funds by the immediate past administration, which led to a considerable increase in the accumulated debts on pensions and gratuities”, he said.