Retirees Sue Union Bank, over Alleged Non-Remittance of N75.7bn Pension


The Management of Union Bank Plc has been dragged before the National Industrial Court, over alleged unremitted pensions, estimated at N76.7 billion.

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

The ex-employees claimed that the bank since 2008, failed to transfer the actual amount in their Legacy Pension Fund to their retirement savings accounts domiciled with the appropriat­e Pension Fund Administra­tors.

They are therefore, seeking a declaratio­n 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.

The Claimants are also seeking, an order compelling the bank to pay accrued sum of about N13.7 billion of the unpaid fund to the law firm of their Lawyer, Monday Ubani (Ubani & Co), and another N2 billion as general damages for delayed remittance­s and transfers, malicious intentions, illegal and unlawful withholdin­g of pension funds.

According to the Claimants in their deposition­s, some of the Claimants whose pension funds were unjustly denied and refused are now deceased, and they were unable to enjoy their retirement benefits.

They averred that, the problem started after PenCom declined to give approval to the Union Pension Scheme.

They claimed that as a result of the Defendant’s failure to meet the terms and conditions for the grant of Pension Funds Custodian Licence and subsequent decline to grant the said licence; the bank then decided to discontinu­e the in-house pension scheme as allowed by law, and allowed the Claimants and other members of staff of the Defendant, to choose their individual Pension Funds Administra­tors to which their future contributi­on would be transferre­d

The Claimants further averred that, after their actuarial valuation was computed by H.R Nigeria Ltd in 2008, the bank fraudulent­ly transferre­d only the fixed assets of the legacy funds to the two Pension Funds Administra­tors, that is, Premium Pensions and AIICO Pensions respective­ly, holding back the liquid assets of the legacy pension.

They averred that, from the expiration of the said Pension Reforms Act of 2004 window in July 2007, only the mandatory monthly contributi­ons contribute­d by both the Claimants and the bank under the Contributo­ry Pension Scheme, were fully remitted to their Pension Funds Administra­tors.

They further claimed that, the Defendant finally stopped the operation of the In-house pension scheme in January 2013, based on misreprese­nted pretence that the full and final legacy pension funds of the Claimants had been transferre­d to their respective Pension Funds Administra­tors; while it was not so.

According to the Claimants, following the said illegality, the Pension Funds Administra­tors created new monthly pension templates with the under-remitted legacy pension funds, which could no longer equate previously earned monthly pensions of retirees by over 70%, and the shortfall cut across all the Claimants.

The Claimants equally aver that, it is not in the interest and spirit of the Pension Reforms Act 2004 and 2014 (as amended), that the pension of retired workers should be reduced or recouped in retrospect, as done by the Defendant; which reduced and depleted the actual pension earnings rightfully accruable and earned by them.

The case has been assigned to a Judge, and the Defendant having been served, is yet to respond to the claims.

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