FUG Pensions explains position in controversial Union Homes legacy fund

The management of FUG Pensions Limited has explained that it would await the express directive of the National Pension Commission (PenCom) the industry regulator, to release beneficiaries’ monies in Union Homes Savings and Loans Limited.

The PFA further stated that the controversial funds have been well managed, but would have to follow due process of relinquishment based on Fund Management Agreement and guidelines as issued by PenCom.

Ngozi Chuks-Okeke, general manager/head, investment, who spoke on behalf of the managing director during one of the protests by Union Homes Savings and Loans Limited staff, said  “our duties as fund manager have been performed in strict compliance with the provisions of the Pension Reform Act and regulations as issued by the National Pension Commission.”

According Chuks-Okeke, said the fund value had increased by 50 percent between 2011 and 2015.

“We have not and cannot deliberately refuse or delay disbursement to beneficiaries as is being said by the beneficiaries, but FUG Pensions cannot pay out any money from this fund without the express and unconditional approval of the National Pension Commission,” she added.

Giving the historical background of processes heralding the fund, FUG said: “In 2010, FUG Pensions prospected the management of the existing staff pension scheme of Union Homes Savings and Loans plc in line with the provisions of the Pension Reform Act 2004 and relevant regulations issued by the National Pension Commission (PenCom).

“After series of meetings and correspondence, FUG Pensions was appointed one of the managers of the scheme and received the total sum of N448.8m in two tranche in 2011.

“The management of the fund commenced immediately the first tranche was received, and the fund management agreement was executed after receipt of the 2nd tranche. FUG sought the contribution of PenCom and obtained in the preparation of the fund management agreement and same was prepared in line with the provisions of the Pension Reform Act.

“The execution of agreement by all parties was the second step towards the approval of the scheme. While the management of the fund was being diligently carried out in compliance with investment regulations released by the Commission, Union Homes was asked to produce series of documents, in addition to the executed fund management agreement, to process the approval of the scheme as a continuing pension scheme.

“The request was declined and the management of the fund continued until January 2015 when we started receiving letters from beneficiaries to the effect that amounts due to them be credited to their personal accounts.

“In view of the mounting pressure from beneficiaries of the fund, we commenced the distribution of the funds to retirement savings accounts and pension fund administrators of beneficiaries. The transfers were both cash and assets available as at 26th January 2015.

“In the course of the transfers, it was observed that the realisable market value of the Government securities (FGN & State Bonds) was lower than the total value to be credited to individual RSAs, which was based on the value in the books.

“Consequently, PenCom was notified at a meeting of the managing  PFAs and a representative of Union Homes ex-staff at Abuja. We were directed to recall all the transfers to pension fund administrators (PFAs) meant to be credited to the retirement savings accounts of beneficiaries; thus re-establishing the fund.

“After this meeting, there have been series of meetings with the management of Union Homes and the former staff on the matter in the office of Union Homes, and there has been assurance that the fund was intact but there was no way the disbursement could be done without the express and unconditional approval of PenCom.

“FUG Pensions has been treateda to many disruptive protests by some of the fund beneficiaries and we have been working under the constant threat and fear of a complete lock down of the Company.

“As a concerned and responsible corporate citizen, a further meeting of all parties had been requested of PenCom where everyone’s position will be put on the table and a way forward charted.

“PenCom, on receipt of the letter and further to previous meetings invited Union Bank plc, the parent company of Union Homes to a meeting at its office on the subject matter. The outcome of the meeting was that Union Bank would review the matter and revert to the Commission with its own position on the matter.

“PenCom conveyed this outcome to FUG Pensions who subsequently informed all other parties. The Commission then asked that the request for an all parties meeting be put at abeyance until the receipt of Union Bank’s position.”

Modestus  Anaesoronye