Former Workers Drag Bank To Court Over Missing N42.8 Billion Pension Fund

No fewer than 203 former employees of Union Bank of Nigeria Plc on Thursday dragged the bank before the National Industrial Court, Ibadan, over unpaid N16.2bn balance of pension entitlements.

The former staff are also demanding for N26.57 billion of accrued rights from the former pension fund operated by the bank.

The case was filed by Augustine Onu, Abegunde Solomon, Olanisebe Ezikiel and 200 others.

The claimant’s counsel, Mr Adeniyi Ishola, told the court that the claimants were deprived of their pension entitlements by Union Bank who managed their pension before the advent of the Pension Reforms Act 2004.

Ishola said that the claimants’ pension, were being paid from an in-House Pension Scheme, called Legacy Pension Fund managed by Union Bank.

He said that the defendant ignored the Pension Reforms Act 2004 and continued paying the claimants’ regular pension until January 2013 when National Pension Commission compelled it to comply with the Act.

Ishola further said that the Legacy Pension Fund managed by the defendant was valued at N46.71bn and Accrued Right valued at N26.57bn as at March 31,2008.

The claimants’ counsel said that the defendant partially complied with the Act by transferring only N30.51 billion out of the legacy Pension Fund to the Pension Fund Administrators and refused to remit the balance of N16.2 billion including the N26.57 billion Accrued Rights.

Ishola urged the court to order the defendant to urgently transfer the balance of N16.2 billion and the N26.57 billion accrued rights withheld by the defendant since March, 2008 to the Pension Fund Administrators.

In her response, counsel to the defendant, Mrs. Olayanju Eto-Abasi, prayed the court to grant her application for extension of time because she was out of time in filling her processes.

Eto-Abasi told the court that she would file her statement of defence as soon as the application for extension of time was granted.

Justice John Peter granted the application for extension of time and adjourned the case until  Nov.6 for hearing

 And For More Nigerian News Visit GWG.NG