Ex-PHCN staff cry out over non-payment of pension

Accuse PTAD of colluding with wages commission to shortchange them They’re only entitled to 9.7 per cent payment – Directorate   Former workers of the defunct National Electric Power Authority (NEPA) and Power Holding Company of Nigeria (PHCN) have cried out to the federal government and other relevant stakeholders to intervene to enable them get […]

• Accuse PTAD of colluding with wages commission to shortchange them

• They’re only entitled to 9.7 per cent payment – Directorate

 

Former workers of the defunct National Electric Power Authority (NEPA) and Power Holding Company of Nigeria (PHCN) have cried out to the federal government and other relevant stakeholders to intervene to enable them get their duly approved 33 per cent pension arrears, which was approved by President Goodluck Jonathan in 2010.

Coordinator of the group, Engr. Dunmoye Murtala in an exclusive chat with Daily Trust called on President Muhammadu Buhari and relevant stakeholders in the pension sector to save them from the injustice meted out to them by the Pension Transitional Arrangement Directorate (PTAD).

Speaking to our reporter, Murtala explained that:  “We were retired as Nigerian Electricity Power Authority (NEPA) staff, then it was still NEPA. A few years after we retired, the name was changed to Power Holding Company of Nigeria. We are NEPA retirees largely those of us that retired up till around 2003. And by 2013, the final unbundling took place, which saw it split into transmission and distribution leaving only the Transmission Company of Nigeria (TCN) as the only one being managed by the federal government.

“So, the staff of PHCN are those that retired as at 2013, not majority of us that retired as far back as 2003, because those PHCN staff that retired in 2013 were paid off and the PFAs took over management of their pension fund.

“As at the time they were calculating our gratuity and pension, the federal government of Gen. Abdulsalami Abubakar gave a pay rise to all Nigeria workers. Also, when President Obasanjo came on board and adjusted by 42 per cent. By 2000, when we were leaving, it was effected only with the 100 per cent increase by Gen. Abdulsalami and that of President Obasanjo was removed giving a shortfall of 42 per cent. It affected our pension and gratuity till date, which is about 22 years ago. This fact was established and they agreed they are owing this money, which they said they will pay but never did.

Genesis of the problem

According to the union coordinator, the problem all started with the Nigeria Electricity Liability Management Company (NELMCO), which took over the payment of pension from the entire NEPA arrangement.

“As at the time NELMCO took over, they paid us from October 2012 to July 2014 October. During this period of 2 years, our pension was not prompt and sometimes it takes almost 5 months for them to clear outstanding payments. Subsequently, NELMCO handed over our payment to PTAD in July 2014.”

He said, “When PTAD took over payments, there already exist the  outstanding payment, which NELMCO transferred to them including the 33 per cent increment awarded on July 1st 2010 during the administration of President Goodluck Jonathan, as  at that time awarded to pensioners of the Defined Benefit Scheme, which they all belong to,  but till date, it has not been  implemented.

“But I and some of my colleagues after conducting a thorough investigation discovered that our national union executives were colluding with PTAD, the National Salaries, Income and Wages Commission to ensure that we are not paid our entitlements till date,” he said. 

Speaking further, Engr. Murtala alleged that “Monies were released in the annual budget from 2017 to 2021 showing that PTAD has gotten these funds including the 33 per cent on our behalf.”

He further alleged that there is also a video of Mrs Sharon Ikeazor at a press briefing in May 2018 confirming that PTAD is owing 33 per cent areas of polytechnics, universities and the electricity sector, adding that an official of the Directorate had called him to pacify him and his colleagues not to picket their office a week before they did on May 5th, 2022.

“The former executive secretary of the agency who is now a federal minister was recorded widely by mainstream television stations affirming that they are owing us these monies, so I wonder why the new head of PTAD is saying we are not qualified.

“The video in question was extracted from the Facebook page of PTAD, which was posted on 18th May 2018. They decided to pay us 9.7 per cent, which there is no circular to that effect. They just manufactured the circular recently. What we know and what we have discovered is that they had received this money from 2017-2021 but they have not paid us with other arrears including 42 per cent of the year 2000 pensioners.”

Daily Trust understands that the group through their lawyer, Mr Femi Falana (SAN) on March 11, 2021, wrote to PTAD with regards to the issue.

Mr Murtala confirmed that “Mr Falana, wrote to the president, last year October, giving PTAD January 31st as the deadline that if we were not paid, we will take the matter to court. So PTAD got wind of the information and paid 9.7 per cent. The letter our lawyer wrote to the president threw PTAD in a panic mood, which made them to hurriedly pay the 9.7 per cent and some of our people have still not gotten the money till date.”

Verifying the allegations

Available documents at the disposal of Daily Trust show that a letter addressed to PTAD by the National Salaries, Income and Wages Commission dated 9th March 2015 and signed by one Chike N. Ogbechie, Director, Compensation on behalf of the chairman affirmed that the affirmed that PHCN staff have been on a special salary structure, which can only be reviewed if there is a special approval.

In a video seen by our reporter, the erstwhile Executive Secretary of PTAD who is now the Minister of State for Environment, Mrs Sharon Ekeazor was captured on camera briefing  journalists on accumulated pension arrears of Defined Benefit Scheme pensioners.

“Under the parastatals, which include universities, polytechnics, health sector, electricity sector, we have between 18 and 36months outstanding but the federal government is working hard to clear these 33 per cent arrears as monies are made available, we pay immediately to our pensioners,” Mrs Ikeazor had said.

What PTAD is saying

While reacting to the concerns raised during their protest at the Lagos office of the Directorate on May 6, PTAD maintained that the ex-pensioners are not entitled to the 33 per cent pension increment.

“We would like to state unequivocally, that the National Salaries, Incomes and Wages Commission, the federal government agency responsible for policy statements on emoluments including pensions had directed via a letter of approval Ref: SWC/S/04/S.542/26 of September 26, 2014, that the retired staff of the defunct PHCN are not entitled to the pension increase of 33 per cent.

“This is because PHCN pensioners were already on a special salary structure before the pension review for pensioners who, while in service, were on one of the Harmonised Salary Structures of the Federal Public Service.

“It should be noted that PHCN pensioners took the federal government to the National Industrial Court (NIC), Abuja on this issue.

“After several engagements, President Muhammadu Buhari approved the implementation of a 9.7 per cent increase in the pensions of ex-PHCN retirees under the Defined Benefit Scheme (DBS).

“This approval was used as an out-of-court settlement in order to put an end to the suit at the NIC, Abuja.”

When contacted by Daily Trust on the matter, the Head of Corporate Communications at PTAD simply told our reporter: “The position of the management is clear on the matter that ex-PHCN staff are not entitled to the 33 per cent pension increase and nothing has changed. That is all I can say.”