Re­tirees sue bank over al­leged N75.7bn un­remit­ted pen­sions

The Punch - - COURT NEWS - Oladimeji Ra­mon

SOME re­tired em­ploy­ees of Union Bank Plc have filed a class ac­tion against the bank be­fore the Na­tional In­dus­trial Court over al­leged un­remit­ted pen­sions, which they es­ti­mate at N76.7bn.

Two re­tirees, Sanyaolu Su­lai­mon and Mkpa Ja­cob, filed the suit on be­half of them­selves and 900 oth­ers of their col­leagues.

In the suit filed on their be­half by their lawyer, Mr Mon­day Ubani, the re­tirees are urg­ing the court to or­der Union Bank to re­mit the N76.7bn with an in­ter­est of N13.7bn.

They are also seek­ing a sep­a­rate N2bn pay­ment as gen­eral dam­ages for “de­layed re­mit­tances and trans­fers, ma­li­cious in­ten­tions, il­le­gal and un­law­ful with­hold­ing of pen­sion funds.”

The re­tirees claimed that the bank failed to trans­fer the ac­tual amount in their Legacy Pen­sion Fund to their re­spec­tive re­tire­ment sav­ings ac­counts be­ing man­aged by their cho­sen pen­sion fund ad­min­is­tra­tors.

They are urg­ing the court to de­clare that the bank breached the pro­vi­sions of the Pen­sion Re­forms Act, 2004 and 2014 by fail­ing to trans­fer the legacy pen­sion funds to the re­spec­tive pen­sion funds ad­min­is­tra­tors.

They told the court that the prob­lem started af­ter Pencom re­fused to give ap­proval for Union Bank’s in-house pen­sion scheme – Union Pen­sion Scheme – and di­rected the bank to scrap it.

They said fol­low­ing this, Union Bank dis­con­tin­ued its in-house pen­sion scheme while the claimants were al­lowed to choose their in­di­vid­ual pen­sion funds ad­min­is­tra­tors to which their fu­ture con­tri­bu­tions would be trans­ferred.

Su­lai­mon and Ja­cob al­leged that af­ter their ac­tu­ar­ial val­u­a­tion was com­puted by H.R Nige­ria Ltd in 2008, Union Bank only trans­ferred the fixed as­sets of the legacy funds to their re­spec­tive cho­sen pen­sion funds ad­min­is­tra­tors – Pre­mium Pen­sions and AIICO Pen­sions.

They said the bank with­held the liq­uid as­sets of the legacy pen­sion.

The court has yet to fix a hear­ing date for the suit.

Newspapers in English

Newspapers from Nigeria

© PressReader. All rights reserved.