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NPA has addressed and concluded all payment issues with disengaged workers- Management

The Management of the Nigerian Ports Authority (NPA) on
Thursday made public that it had concluded all payment matters involving the May
2008 disengaged 530 workers.

A statement signed by the Assistant General Manager,
Corporate and Strategic Communication, I.S. Nasir, debunked claims by the disengaged
workers that they had yet been settled their entitlement.
The NPA stated that the disengaged workers were
affected by the rationalisation scheme according to guidelines of the Public
Service Reform, and that due to some procedural delay it took time to implement
the monetisation of their disengagement.
It, however, stated that its responsibility to the
disengaged workers was concluded with the payment of ₦753,731,001.24 (Seven
hundred and fifty –three million, seven hundred and thirty-one thousand one
Naira, Twenty-four kobo for the final list of 517.
Full text of the NPA statement:
The attention of the Management of the Nigerian Ports
Authority (NPA) has been drawn to the above malicious and misleading news item
making the rounds in the media at large.
In this respect therefore, management wishes to state
categorically and unequivocally that the information is capable of derailing
the company’s responsibilities to deliver corporate service to its large
That in the fulfillment of all reform preconditions, the
May, 2008 rationalization was carried out based on the provision of the Public
Service Reform guidelines. However, the process of concluding this exercise led
to delay in the implementation of the monetization policy of the Federal
Therefore, to comply with the preconditions,
implementation of the policy commenced 1st July, 2008 after the May 2008
rationalization exercise.
Agitation from the two house unions for payment of
arrears on monetization based on the January approval date, resulted in the
agreement to pay arrears of three (3) months to all existing employees from
April to June, 2008 hence the two months’ arrears which was paid to them after
their exit.
1.  In compliance
with the directives of the Federal Government in the public service guidelines,
those affected by the rationalization exercise were not entitled to the
monetization and enhanced staff allowances as it was a precondition before
implementation of the scheme thus the two months of monetization arrears paid
to them was regarded as an error made and accepted in good faith.
2.  Entitlement
paid to them are as listed below:
       Three (3)
months’ salary in lieu based on their salaries at the time of disengagement
calculated in line with their salary at the date of exit, May 31st, 2008.
pension & gratuity as compensation due to reorganization was paid to them
as provided for in the Pension Act (Decree 102 of 1979)
Contribution remittance to their RSA
pension right remitted to their PFA/RSA using the Alexander Forbes actuarial
valuation as at 31st May, 2008. The approved template by the Bureau of Public
Service Reform and Federal Ministry of Transport was used for their payment.
Repatriation allowance was paid to them based on the components of the
template from the Bureau of Public Service Reform Guidelines.
3. Giving the foregoing, it is clear that their
entitlements were fully paid based on the policy guidelines of the Federal
Government Reforms programme. Further agitation by this group with intervention
and negotiations from the in house Senior Staff Association led Management of
Nigerian Ports Authority to consider some palliative measures without recourse
to the issues that were earlier addressed (Pension, Gratuity and Repatriation)
do not arise or is not of place.
4. To finally address the matter and put it to rest, a
200% of one-year total emolument amounting to ₦770,386,586.22 (Seven hundred
and seventy million, three hundred and eighty-six thousand, five hundred and
eighty-six Naira, twenty- two Kobo) for the 530 earlier affected by the
exercise was agreed with the group.
5. Further to this, in October 11th, 2013 a joint
Communique was reached on the final payment to the 2008 disengaged employees.
It was then resolved that:
    I.        The issues raised about Pension,
Gratuity and Repatriation have been addressed and final figures for payment to
2008 disengaged employees as agreed to the tune of ₦753,731,001.24 (Seven
hundred and fifty –three million, seven hundred and thirty-one thousand one
Naira, Twenty-four kobo for the final list of 517.
  II.        This constitutes the full and final
payment to the disengaged employees of 2008.
6. A letter of indemnity was duly signed by every one
of them before the amount due to each of them was paid. This arrangement was
fully effected in December, 2013. There was no distortion of the content of the
Joint Communique as alleged, the signing was done openly and transparently.
Some of the executives of the group were signatories.
7. It should also be noted that the Pension Reforms Act
of 2004 which became fully effective from 3rd July, 2007 affected those who
left service thereafter. They all enrolled with different Pension Fund
Administrators where their accrued/contributory pension deductions had been
paid and accessed by them. They exited in May, 2008, four (4) years after the
full implementation of the new pension Act, 2004 and one year after the
expiration of 3 years grace given to those who had 3 years and below to
retirement on the old scheme.
8. Part 1. sub section 8(i) of the Pension Reform Act,
2004 states: notwithstanding the provisions of subsection (2) of section I of
this Act, any employee who at the commencement of this Act (25th June, 2004) is
entitled to retirement benefits under any Pension Scheme existing before the
commencement of this Act but has 3 or less years to retire shall be exempted
from the scheme. From the foregoing, the 3 years elapsed on 3rd July, 2007.
9. In view of the above, it is pertinent to the state
that the May, 2008 disengaged employees are not part of the Defined Pension
Scheme which effectively ended on 3rd July, 2007 as they were enrolled in the
New Contributory Pension Reform Scheme with all remittance to their Pension
Funds Account Managers made.

In conclusion, as a responsible Corporate entity of
government with regards to the statutes, extant regulations and laws of the
land, the Nigerian Ports Authority (NPA) reiterates its firm resolve at
prioritizing the welfare of its staff.
 I.S. Nasiru
AGM (Corporate & Strategic Communications)
FOR: GM (Corporate & Strategic Communications)

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