Many Lagos public servants yet to open RSAs – LASPEC DG

The Director-General of the Lagos State Pension Commission (LASPEC), Babalola Obilana, has lamented that many public servants had yet to open their Retirement Savings Accounts (RSAs).

Obilana made this disclosure on Tuesday during a sensitisation programme on the Contributory Pension Scheme (CPS) for employees of Local Government Areas, held in Ikeja, Lagos.

Over the course of three days, the sensitisation programme is expected to benefit 7,457 officers from across the 20 local governments and in the five division of the State.

According to the DG, this oversight had serious implications for their future financial security, stating that without an RSA, their pension contributions remained in an Escrow Account, rather than being invested and managed to generate growth.

He explained that this situation not only limited the potential of their retirement savings but also complicated the pension payment process when they retired.

“I cannot stress enough the importance of opening your RSA without delay. If you have not done so already, I strongly urge you to take action today. The team at LASPEC is available to guide you through the registration process, assist with the required documentation, and provide information about the various PFAs available to you,” he told the large gathering.

Obilana went on to explain that the CPS was established with the primary goal of guaranteeing a reliable and sustainable source of income for every employee upon retirement.

He highlighted that the scheme was based on a simple principle: both employees and employers contribute a portion of the employee’s salary into a pension fund, which is then managed by a designated authority.

“Over the years, the administration of the CPS in Lagos State has evolved, with several key updates aimed at improving efficiency, transparency, and accessibility. These changes reflect our ongoing commitment to safeguarding pension funds and ensuring that your benefits are both protected and accessible when you need them most.

“A significant recent development has been the strengthened collaboration between the Lagos State Pension Commission (LASPEC), the Pension Fund Administrators (PFAs), and the Annuity Service Providers (ASPs). LASPEC has worked tirelessly to streamline processes, ensuring that pension benefits are easily accessible upon retirement. This collaboration is essential to ensuring that retirement savings are properly managed and continue to grow over time,” he stated.

He urged the Pension Desk Officers and Directors of Administration and Human Resources to ensure that all employees were well-informed about the pension process and were encouraged to open their RSAs, stressing that accurate and timely communication was key to ensuring that everyone was registered and actively participating in the scheme.

Obilana emphasised the importance of public servants regularly reviewing their RSA statements to ensure that contributions were being debited and remitted correctly.

“While this may seem like a small task, it plays a vital role in safeguarding your long-term financial security. By checking these statements regularly, we can confirm that contributions are being accurately reflected and deposited on time. This proactive approach helps prevent errors, delays, or potential discrepancies that could impact your retirement plans, and fosters a culture of transparency and accountability.

“Today’s event also provides an opportunity for you to update your records and participate in a Data Recapture Initiative with our PFAs, ensuring that we have accurate and up-to-date information for every public servant. Accurate data is critical for tracking contributions and ensuring that benefits are calculated and disbursed correctly.

“We understand that navigating pension procedures can be complex and sometimes overwhelming. That is why we are committed to hosting a series of workshops and information sessions in the coming year. These sessions will be designed to simplify the pension process, address any concerns you may have, and equip you with the knowledge to make informed decisions about your retirement,” he said.

The DG further stated that the role of the Local Government Areas in this process could not be overstated, pointing out that, as the key employers of the State’s grassroots workforce, LGAs played a vital role in ensuring the smooth operation of the CPS at the local level.

“Effective communication, proper documentation, and timely submission of contributions are all essential elements in ensuring that employees experience a seamless pension process. I urge all stakeholders, including Local Government administrators, pension desk officers, and employees, to take full advantage of the resources available and follow best practices in pension administration,” he added.

Speaking at the event, the Head of Service (HOS), Bode Agoro, said the sensitisation is aimed to facilitate the seamless processing of retirement benefits for public servants in the state.

Agoro, who was represented by the Permanent Secretary, Mrs Olasunkanmi Oyegbola, praised LASPEC for its unwavering commitment to continuously guiding public servants through the often-complex retirement process, helping them navigate the transition smoothly.

Agoro said the programme was particularly significant as it allowed for the updating of public servants’ personal and pension-related information, ensuring the efficient processing of retirement benefits.

To ensure widespread coverage, Agoro explained that the sensitisation and documentation would take place at designated centres in the five divisions of the state.

He urged employees to take full advantage of this opportunity to update their data and ensure that their pension records were current.

He encouraged all participants to take advantage of the initiative and ensure their pension records were up to date for a smooth transition into retirement.