Retirees sue bank over alleged N75.7bn unremitted pensions

Web Editor | ConsumerConnect

Some retired employees of Union Bank Plc, in Nigeria, have filed a class action against the bank before the National Industrial Court over alleged unremitted pensions, estimated at N76.7billion.

Agency report states Sanyaolu Sulaimon and Mkpa Jacob, the two of the bank’s retirees, recently filed the suit on behalf of themselves and 900 others of their colleagues.

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

They are also seeking a separate N2billion 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.

The plaintiffs are urging the court to declare that Union 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 also alleged that after their actuarial valuation was computed by H.R Nigeria Limited, 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.

However, many have wondered about this development regarding the fate of bank’s retirees after years of service.

Yet, Union Bank on its corporate Web site, maintains it remains “Nigeria’s most reliable and trusted banking partner. We make lives better by delivering the simplest, smartest solutions and guaranteeing the best experience every time.”

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