Retirees Urge Union Bank to Pay N42.77b Retirement Benefits

• Retirees Urge Union Bank to Pay N42.77b Retirement Benefits

Retirees of the Union Bank of Nigeria, under the auspices of Grand Progressive Association of Contributory Pensioners of Union Bank of Nigeria, have accused the National Pension Commission (PenCom) of collaborating with the bank to deny them their benefits amounting to N42.77 billion.

The pensioners, numbering 6,748, said the bank has not paid the balance of N42.77 billion, 11 years after they retired. They alleged that PenCom has refused to sanction the bank in accordance with the Pension Reform Act, 2004 as amended.

In a statement by the group’s Preesident, Yohanna Sodo, and Secretary Augustine Ikaan, the pensioners explained that the Union Bank Legacy Pension Assets/Accrued Rights were carried out on March 31, 2008 by Hogg Robinson Nigeria Limited, which submitted that total Legacy pension asset stood at N46.711billion, while the accrued rights was N26.57billion.

They further said of the total amount of N73.28 billion, the bank only remitted N30.51 billion, leaving a balance of N42.77 billion, which has not been paid. They also alleged that rather than PenCom exercising the powers conferred on it, the commission has chosen to remain silent on the issue even when it is obvious that Union Bank has flouted the law.

Relying on Section 11 subsection 1(c) of the Pension Reform Act 2014, the retirees argued that as from June 25, 2004, being the commencement of the Pension Reform Act 2004 as amended in 2014, the Accrued Pension rights to retirement benefits of any employee, who is already under any pension scheme existing before the commencement of that Act and has over three years to retire, shall credit the retirement savings accounts of the employees with any funds to which each employee is entitled, and in the event of an insufficiency of funds to meet this liability, the shortfall shall immediately become a debt of the relevant employer and shall have priority over any other claim.

They stressed that in line with the Pension Reforms Act, the bank management is required to offset the balance of Legacy Pension and accrued rights, which ought to have been remitted to the Retirement Savings Account (RSA) of the ex-workers in compliance with Section 11 sub-section 1(c) of the Pension Reform Act.