Ondo State to Explore Pension Funds For Infrastructural Development

By Oluwakemi Kindness

Ondo State government says it is exploring opportunities to leverage pension funds for infrastructural development in the state.

Governor Lucky Aiyedatiwa, made this known when he received a delegation from the National Pension Commission (PenCom) led by the Director General, Omolola Oloworaran in Akure.

A statement by the Commission on Thursday says the PenCom delegation visited the Governor to discuss critical pension reforms aimed at improving welfare for retirees and ensuring compliance with the Contributory Pension Scheme (CPS).

Speaking during the visit, Governor Aiyedatiwa extols the critical role of pension funds in economic development and commended PenCom for its proactive engagement.

He reaffirms his administration’s commitment to the full implementation of the CPS in Ondo State.

The Ondo State Pension Commission (OSPEC) scored 72.44% in state pension compliance during the last Routine Inspection carried out by PenCom.

The Governor expresses his aspiration to improve the State’s pension compliance rating from its current composite score of 72.44% to 95% by the next Inspection as challenged by the PenCom DG.

According to the statement, PenCom D.G. Omolola Oloworaran, proposed key amendments to the Ondo State Pension Law, including the introduction of a Minimum Pension Guarantee (MPG) to support indigent contributors and an Irrevocable Standing Payment Order (ISPO) to ensure consistent remittances by successive administrations.

She also advocated for the integration of a Pension Compliance Certificate (PCC) as a mandatory requirement for business licensing, registration renewals, and contract awards within the State.

This measure aims to enhance compliance and accountability in pension remittances by employers.

Additionally, the PenCom DG raises concerns identified during OSPEC’s last Routine Inspection, urging prompt resolution to improve the State’s pension compliance rating.

Meanwhile, Governor Aiyedatiwa promises that the state would address most of the concerns before the next inspection.