POWER Holding Company of Nigeria, PHCN’s retirees have blamed the Federal Government for both the crisis and the missing fund in the PHCN pension scheme otherwise known as superannuation fund, SF.
Under the National Union of Pensioners, NUP, Electricity sector chapter, in a memoranda to the panel of investigation on Pension Matters in the Power Sector traced the emergence of the SF to the 1960s.
In the memo by the President and Secretary of the union, Comrades Temple Ubani and Olukayode Ogunbiyi, claimed that the fund used in servicing the SF was expected to be a percentage (0/0) of the emoluments of the workers and at that time it was 35%, explain that “it was not a direct deduction from the salaries of the workers but a provision which cash backing was supplied by the employer.”
“It was agreed between Labour and Management that the contribution was to be made by Management, remitted to the Fund and kept for employees’ terminal benefits. To manage the Fund properly, two accounts were maintained in Nigeria and in the UK.
“At the merger of NDA and ECN in 1972 to become National Electric Power Authority, NEPA, the workers union, National Electricity and Gas Workers Union, NEGWU, and the new management recognized the need for the amalgamation of the two Schemes and this resulted in the re-negotiation of the terms of funding and the scope of coverage. It was then agreed that the contribution would be 25% and that it would cover all categories of staff, be it expatriates or Nigerians.
“Up to date, the money accruing to that fund though domicile in NEPA/PHCN, belongs to the Staff and the Pensioners in the Sector to take care of their gratuity and pensions and it is purely non-contributory – only the employees contributing into the scheme. The provision was initially based on basic salaries but later migrated to total emoluments from the early 80’s up to the present time.”