NPA To Pay N195.78m To Retrenched Staff

By Esther Komolafe

The management of the Nigerian Ports Authority (NPA) has concluded arrangements to pay N195.7million as the Annuity to the last batch of its retired workers. The amount represents the final payment of all claims due to the 1991 retrenched workers.

Their retrenchment benefits were based on the current inflation rate using the annuity formula over a 20-year period (1991-2011), which was 8.23091 per cent as provided by the Central Bank of Nigeria.

The decision by the Nigerian Ports Authourity to review the payment upwards was based on compassionate grounds as clearly conveyed 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) for payment in line with the e-payment policy of the Federal Government.

The spokesman to the Authority, Chief Michael Ajayi said in a statement that the action by his organisation was in compliance with the Supreme Court judgment of 11 May, 2007 which directed that the calculation and payment of retirement benefits (pension and gratuity) be computed on the basis of the Pension Act 1990 as amended by circular No 63216, S.1/x/618 of 13th September the same year.

The NPA management thereafter set up a committee to carry out an audit exercise in order to verify and identify the affected employees and to compute the difference between the basic and total emolument of the retrenched employees in June 1991.

In the light of their findings, 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.

No fewer than 1,531 persons were settled in March, last year while bank details of others (about 538) are still being expected for payment to be made.