Governor Seyi Makinde has approved the commencement of the Contributory Pension Scheme (CPS) for eligible workers in Oyo State, a move the government says is aimed at strengthening retirement security and improving pension administration across the state civil service.
The approval was announced by the Chairman of the Oyo State Pensions Board, Hon. Tunji Rafiu Adekunle, through a circular issued by the Permanent Secretary, Post Service Board, Rev. Adekunle Victor Adesola, and circulated to Ministries, Departments and Agencies, as well as civil and public servants across the state.
According to the circular, the scheme will apply to officers employed into the Oyo State Civil and Public Service from January 1, 2025, while full implementation of the Contributory Pension Scheme is scheduled to commence on July 1, 2026.
The development marks a significant shift in Oyo State’s pension administration framework and aligns the state more closely with national pension reform efforts aimed at ensuring sustainable retirement benefits for workers.
Adekunle explained that under the approved structure, the Oyo State Government will contribute 12 per cent of each employee’s pensionable earnings, while workers will contribute eight per cent.
“The pension contribution rate will be 12 per cent from the employer (Oyo State Government) and eight per cent from the employee,” he stated.
He also assured workers that the government would ensure the immediate payment of accrued pension benefits due to employees affected by the transition into the new scheme.
To facilitate a seamless rollout, the Pensions Board directed all MDAs to compile and submit comprehensive records of employees recruited into the state civil and public service from January 1, 2025.
The submissions, which must be provided in both hard and soft copies, are expected to assist the board in building an accurate database of workers who fall within the new pension framework.
The circular further instructed every ministry, department and agency to appoint a Pension Desk Officer who will serve as a liaison between the agency and the Oyo State Pensions Board.
According to Adekunle, the measure is designed to improve coordination, accountability, capacity building and efficient processing of all matters relating to the Contributory Pension Scheme.
“This measure is aimed at facilitating effective coordination, capacity building, accountability and the seamless processing of all matters relating to the Contributory Pension Scheme,” he said.
The nominated officers are expected to provide details including their names, positions, grade levels, telephone numbers, email addresses and WhatsApp contacts.
The Oyo State Pensions Board fixed June 22, 2026, as the deadline for the submission of all requested documents and information by MDAs.
The introduction of the contributory pension system is expected to strengthen retirement planning for public servants while promoting transparency, accountability and long-term sustainability in pension management.
For Oyo workers employed since January 2025, attention is now expected to shift to registration processes, pension fund administration and compliance ahead of the July implementation date.
