Federal Government yesterday said the 25 per cent demand by workers of the Power Holding Company of Nigeria (PHCN) in the computation of their severance benefits and pensions is not feasible.

Minister of Power, Prof. Barth Nnaji, who stated this at an interactive session with the media in Lagos, said government will require a total of N443 billion representing an additional N299 billion from the N144 billion budgeted to offset the severance and pensions of workers in the power sector.

Nnaji, who described the amount as outrageous and unachievable wondered where government would raise such amount to pay severance benefits and pensions of workers in only one sector of the economy.

He explained that the unions are demanding for the payment of their gratuity up to 30 June, 2012 using the old benefit scheme under their underfunded Superannuation Fund, noting that this would amount to clear breach of the provisions of the Pension Reform Act 2004.

He insisted that government will only implement the provisions of the Pension Reform Act 2004 regardless of the union’s agitation.

The minister, who spoke extensively on the efforts by the government to ensure effective power supply through the privatisation agenda and the on-going reform process, said the privatisation must be concluded while the reforms must go on.

He maintained that government will not condone any act of lawlessness from any quarter, noting that President Goodluck Jonathan has also directed that the law of the country must be followed because Nigeria is a nation governed by rule of law.

“The issue of gratuity/pension constituted the crux of the negotiations with unions. Two major positions emerged. The unions maintain that Chapter 13, Retirement and Pension, of the PHCN March 5, 2010 Conditions of Service remain in effect regardless of their direct with conflict with the Pension Reform Act (PRA) 2004 which abolished all underfunded schemes in the country, and prescribed specific steps to transition to a contributory pension scheme.

“The unions are demanding the generous gratuity provisions of Chapter 13, and retiring employees as at June 30, 2012 continue to receive these payments in cash upon retirement, in spite of the illegality of the payment by the PHCN management,” Nnaji said.

On the claim by the PHCN workers that they have been contributing 25 per cent of their salaries to the PHCN Superannuation Fund towards meeting their gratuity and pension obligations, Nnaji said the PHCN is operating an illegal scheme, noting that the power ministry has set up a Committee headed by a former auditor general of the federation to look into the issue.

He said the committee was given one month time-line and will conclude its investigation in two weeks.

“Any retirement conducted by PHCN post 1 July, 2007 is illegal unless forbearance is sought from PENCOM for such categories of retirees, and government has not sought for this.”

“We are determined to cut off all these sources of corruption in the system. We are going to stop it. When the report comes out, we will see the recommendations and act promptly on it,” Nnaji added.

Speaking also on the issue, Former Permanent Secretary, Ministry of Labour, Dr. Koripamo-Agary explained that the claim by the unions that 25 per cent is being deducted from their salaries towards the payment of their pensions and gratuities is untrue stressing that no deduction is being effected from the workers’ salaries.




http://www.thisdaylive.com/articles/25-severance-package-demand-by-phcn-workers-not-feasible-says-fg/122580/

I just hope PHCN workers are not saboteurs. Nigerians are still waiting to say goodbye to Generator. It is well