UBN’s ex-workers flay Pencom over alleged non-remittance of N43b

The 6,748 retired workers of Union Bank of Nigeria (UBN) have accused the bank for not paying their N42.77 billion 11 years after their exit from the bank.

The former staffers who are agitating for the remittance of outstanding pension arrears under the aegis of Grand Progressive Association of Contributory Pensioners of Union Bank of Nigeria also accused National Pension Commission (Pencom) of complicity in the cover up and refusal to sanction the bank for non-remittance of pension funds contrary to Pension Reform Act 2014 Section 11 Sub-section 3(a) and (b).

A statement signed by the President of the group, Yohanna Sodo and secretary, Augustine Ikaan at the weekend in Abuja, explained that Union Bank remitted only N30.51billion out of N73.281billion leaving a balance of N42.77billion.

Relying on Section 11 Subsection 1(c) of the Pension Reform Act 2014, the retired workers argued that as from 25th June 2004, being the commencement of the Pension Reform Act 2004 as amended in 2014, the Accrued Pension right 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.”

It also claimed that actuarial valuation of Union Bank Legacy Pension Assets/Accrued Rights were carried out on 31st March 2008 by Hogg Robinson Nigeria Ltd which submitted that total Legacy pension asset of N46.711billion and accrued rights of N26.57billion.

Therefore, the management of the Bank 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 2014.

The group lamented that this action or lack of it has impacted negatively on its members as they are holding the short end of the stick.

The former bank workers alleged that Pencom has chosen to remain silent on the issue even when it is obvious that Union Bank has flouted the law.