The management of the Nigerian Ports Authority (NPA) said yesterday that it will soon commence payment of N195.7million as the Annuity, being the final payment of all claims that are due to the 1991 retrenched employees of the agency.
The NPA, in a statement yesterday through its image maker, Chief Michael Ajayi, explained that the cost implication of this group’s retrenchment benefits were calculated based on the current inflation rate using the annuity formula over a 20 year period (1991-2011) which was 8.23091% as provided by the Central Bank of Nigeria.
The management of the Nigerian Ports Authority (NPA) said yesterday that it will soon commence payment of N195.7million as the Annuity, being the final payment of all claims that are due to the 1991 retrenched employees of the agency.
The NPA, in a statement yesterday through its image maker, Chief Michael Ajayi, explained that the cost implication of this group’s retrenchment benefits were calculated based on the current inflation rate using the annuity formula over a 20 year period (1991-2011) which was 8.23091% as provided by the Central Bank of Nigeria.
According to the statement, the “decision to review the payment upwards is based on compassionate grounds as clearly made known to the representatives of the retrenched workers bearing in mind the interval between the first payment and current payment.”
“Consequently, forms containing the list of the ex-employees have been forwarded to their representatives to enable them furnish their new bank details (NUBAN) to enable payment to be effected in line with the e-payment of the Federal Government”, it added.
We may wish to recall that in compliance with the Supreme Court judgment dated 11th May, 2007 which directed that the calculation and payment of retirement benefits (pension and gratuity) payments be computed based on the Pension Act 1990 as amended by circular No 63216, S.1/x/618 of 13th September, 1991 prescribing the period of service of the affected workers in the organization.
Accordingly, management set up a committee to determine those that are eligible, and thereafter conducted an audit exercise to verify and identify the affected employees and consequently computed the difference between the basic and total emolument of the retrenched employees of June 1991.
In the light of the above, payments were made to the affected persons with the exception of those who failed to provide relevant bank details and also next-of-kin of some deceased employees.
To this effect, payments have been made to 1,531 persons as at March, 2011. The bank details of others (about 538) are still being expected for payment to be remitted.
It needs to be emphasized that the current exercise covers all retrenched workers in the 1991 exercise, the statement concluded
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