203 former employees of Union Bank Plc on Thursday dragged the bank before the National Industrial Court sitting at Ring road, Ibadan, over allegations that the maltreatment and mismanagement of their pension by the bank which they served meritoriously.
The former employees who exited the employment of the bank at different times between years 2007 to 2018 are contending that the Pension Reform Act 2004 (as repealed) is not aimed at reducing the pension already earned but to improve on it, alleging that their former employer had reduced the monthly pension entitlement of the claimants by over 70 per cent since 2013 till date without any justification.
When the case was called before Justice John Peter on Thursday, counsel to the former employees, Adeniyi Isola, informed the court that the case borders on the mismanagement of pension funds by Union Bank, explaining that before the contributory scheme of pension took off, the bank had an in-house pension scheme that handled pension affairs.
“There was an in-house pension scheme of the bank that handled pension affairs before the commencement of the contributory pension scheme but the bank claimed it invested the pension money and lost the money in the investment. They mismanaged the pension and are maltreating their ex-workers that served the bank and helped to create wealth since all entreaties have failed, we have no choice than to come and find justice from the law,” he stated.
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However, counsel to the bank, Olayanju Eto-Abasi, appealed to the court for an extension of time to file the bank’s defence and Justice Peter granted the request since the claimant’s counsel raised no objection and adjourned the matter till November 6, 2019, for mention.
The former employees are asking for an order of court directing the bank to pay the amount of N710, 145,650.76k to the first to 95th claimant being the aggregate arrears of shortfall in their monthly pension entitlement received since 2013 till date of filing the suit and the sum of N965, 157, 906.82k to 96th to 203rd claimant, being the aggregate arrears of shortfall in their monthly pension entitlement received since 2011 till date of filing the suit
They further asked for a court order mandating the bank to pay the claimants the sum of N19, 316, 353.83 as damages per month effective from 2007 till date until the suit is finally determined because the pension shortfall they will continue to suffer on account of the bank’s conduct and payment of 42 per cent interest rate on the judgment debt from February 2013 until judgment is finally liquidated.
Further they asked for a mandatory order directing Union Bank to transfer the balance sum of N16.2bn Legacy Pension Fund and N26.57 accrued rights it withheld since March 2008 to the two pension fund administrator; Premium Pension Ltd and AIICO Pension Managers Ltd to enable the managers pay full monthly pension sum contained in their respective letter of disengagement or retirement until their death as well as an order directing the bank to deduct five per cent of the aggregate amount paid the current account of the 1st to 95th claimant and the retirement savings account of the 96th to 203rd claimant and pay to Niyi Akinsola and Co’s First Bank account with number 2004914877 in consideration of the firm prosecuting the case as balance of its professional fees.
Further, they asked for a declaration that they have acquired vested rights in the pension payable and paid to each of them by the bank up to January 31, 2013 from the Union Bank of Nigeria Plc Staff Pension Scheme under the bank’s Staff Pension Fund’s Deed of Variation of Trust Deed.
They also asked the court to declare that the Memorandum of Understanding dated August 12, 2015 be executed between the bank and Union Bank of Nigeria Pensioners Association without their consent and approval is null and void among other requests.