LAGOS Lawyer and counsel to the National Union of Electricity Employees, NUEE, Mr. Bamidele Aturu, has dismissed claims by Government that Contributory Pension Scheme, CPS, which came of the Pension Reform Act of 2004, has invalidated existing defined pension, describing such claims as mere  misconceptions and misleading positions.

Aturu in a statement said his law firm had the instruction from NUEE “to use all lawful means including but not limited to litigation to ensure that the government which prides itself as a champion of the rule of law does not illegally and brazenly deny the workers of their pension rights which they worked for under the pretext of implementing a law.”

According to the statement, “One grey issue which has bogged down negotiations between management and the unions is the unilateral directive issued to the PHCN, and by implication to the Distribution Companies by the Minister of Power, to commence in July 2012 7.5 per cent pension deductions from Employer and from the salaries of employees of PHCN in spite of or outside the existing Contribution Pension Scheme contained in the Conditions of Service of employees of the workers and in the Superannuation Fund.

To the unwary public it might easily be supposed that the issue is a simple one of compliance with the provisions of the Pension Reform Act 2004 and that the workers are only being unreasonable in their demand that the existing arrangement under the Trust Deed embodying the Superannuation Fund be maintained.

It is necessary to state at the outset that the Pension Reforms Act contrary to the mendacious propaganda by self-serving public officials to the contrary does not invalidate existing defined Pension Schemes. Section 39 of the Act makes this clear beyond any peradventure. In other words, the law has not abolished existing schemes. At any rate, the Trust Deed which is a product of collective bargaining cannot be imperiously nullified by the fiat of the Minister of Power or anyone for that matter.”

“There is a provision under the trust deed for termination which has to be strictly complied with and after exhausting the Collective Bargaining process. This is the only course open to a government truly desirous of doing things according to the rule of law. In order to demonstrate the undoubted considered decision of PHCN to continue to operate the existing defined Pension Scheme, its Conditions of Service for the workers which came into force on the 5th of March 2010, four solid years after the commencement of the Pension Reform Act in paragraph 13.2.1 at page 68 clearly stipulates that: ‘the object of the Scheme is the provision of retirement benefits for members or for their dependants.

The Scheme shall be managed by National Electric Power Authority Superannuation Fund Limited (The Fund).”

“The Conditions of Service further makes it clear that the old Scheme would continue to govern pension of the employees of the company in the following unambiguous words: ‘An employee’s pension shall be paid to him regularly after exit from service for as long as he lives, on monthly installment commencing on the day following the date of his retirement’ A document cannot be clearer.

What the government should do is to ask the Minister of Power to withdraw forthwith his directive to PHCN in the interest of industrial peace and harmony. That directive is uncalled for and extremely warranted. We have our client’s inflexible instruction to use all lawful means including but not limited to litigation to ensure that the government which prides itself as a champion of the rule of law does not illegally and brazenly deny the workers of their pension rights which they worked for under the pretext of implementing a law. We shall see to that with unparalleled vehemence.”