The Oyo State Government has noted the concerns expressed by some civil servants, particularly officers recruited in January 2025, regarding the implementation of the Contributory Pension Scheme (CPS) and the deductions reflected in their monthly salaries.
The Government appreciates the orderly and respectful manner in which these concerns have been presented. Constructive engagement remains a hallmark of the worker-friendly administration of His Excellency, Governor Seyi Makinde, and every genuine concern will continue to receive due attention.
It is important to clarify that the Contributory Pension Scheme is a statutory retirement savings programme established to guarantee financial security for workers after retirement. The scheme ensures that employees build retirement savings throughout their active years of service while promoting transparency, accountability, and sustainability in pension administration. It also provides workers with individual Retirement Savings Accounts (RSAs), professional management of pension funds, portability of retirement benefits, and legal protection of their pension contributions.
With respect to concerns about salary deductions, the Government wishes to state that not all deductions on employees’ payslips are pension-related. While pension contributions and health insurance contributions are statutory, several other deductions—including cooperative society contributions, union dues, thrift savings, essential commodity loans, and similar commitments—are voluntary or arise from individual officers’ personal enrolment. Such deductions are independent of the Contributory Pension Scheme.
The compulsory health insurance contribution is an investment in the well-being of workers and their families.
Through the State’s health insurance programme, enrollees have access to quality and affordable healthcare services without bearing the full financial burden of medical expenses whenever the need arises. This not only improves workers’ health and productivity but also protects them against the financial hardship that can result from unexpected illnesses or medical emergencies.
Civil servants are therefore encouraged to examine their payslips carefully and seek clarification from the appropriate authorities where necessary to distinguish statutory deductions from voluntary financial commitments.
The implementation of the Contributory Pension Scheme followed due process and an approved commencement framework. As with every major public policy reform, a commencement date is necessary to ensure orderly implementation, legal certainty, and administrative consistency. The Government remains committed to implementing the scheme fairly, transparently, and in accordance with the law.
The Oyo State Government wishes to reassure all workers that their welfare remains a top priority. Through the Contributory Pension Scheme, the State is securing the future of workers after retirement, while the compulsory health insurance scheme is protecting their health during their years of active service. Together, these reforms represent a long-term investment in the security, dignity, and well-being of the Oyo State workforce.
The government therefore calls on all public servants to continue supporting these reforms, which are designed to guarantee a healthier workforce today and a financially secure retirement tomorrow.
Signed
Hon. Tunji Rafiu Adekunle, JP
Executive Chairman
Oyo State Pensions Board
Ibadan, Oyo State
