During a recent press conference held in Lagos, members of Chevron Nigeria’s retiree community, operating under the banner of Pensioners of Chevron of Nigeria (PenCoN), have voiced concerns regarding the alleged mishandling of their pension fund. With a membership exceeding 1000 retirees, they are urging the multinational company to comply with Nigerian pension regulations by involving them in the governance of their pension fund.
Comrade Omare Jonathan, the president of PenCoN, conveyed the association’s discontent with Chevron’s apparent reluctance to acknowledge their role in overseeing the pension fund. Jonathan highlighted that for nearly three decades, Chevron has unilaterally determined the terms of the pension fund through the Chevron Retiree Association of Nigeria (CRAN), registered as a limited liability company. This arrangement, as reported, has been conducted without the retirees’ input or consent, infringing upon their rights of association and choice in determining the management of their pension fund.
Jonathan highlighted the history of the retirees’ involvement with CRAN, emphasizing that the association was imposed on them by Chevron, functioning more as a company than a trade union or advocacy group. The retirees argue that this arrangement has allowed Chevron to manage their pension fund without their input, resulting in alleged mismanagement and a lack of consideration for their financial well-being.
The retirees also expressed dissatisfaction with Chevron’s handling of the transition to the contributory pension scheme following the enactment of the Pension Reform Act in 2007. They claim that Chevron used fear tactics to discourage them from adopting the contributory scheme, convincing them to remain with the defined benefits scheme. This, according to the retirees, has left their funds in Chevron’s control without generating income for them.
Moreover, the retirees alleged that Chevron unilaterally removed a 60% annual cushion package negotiated by PENGASSAN for retirees, exacerbating the impact of the devaluation of the Naira on their pensions. Despite the drastic depreciation of the Naira, retirees received the same pension amount, leading to financial hardships.
In response to these challenges, retirees who were dissatisfied with CRAN formed PenCoN, seeking a more transparent and accountable representation. They withdrew from CRAN, directing their dues to be deducted at the source and paid to PenCoN.
The retirees expressed concern over Chevron’s recent decision to outsource their in-house defined benefit pension to external pension managers without consultation or agreement with the retirees. The retirees fear that Chevron’s move is a prelude to selling off their holdings in Nigeria, leaving them with a third-party Pension Fund Administrator (PFA) with whom they have no agreement.
The retirees are now urging Chevron to address these issues, uphold transparency, and involve them in the decision-making processes regarding their pension fund. They are calling for accountability and fair treatment in line with Nigerian pension laws and the principles Chevron espouses. The retirees are determined to bring attention to their plight and seek justice for what they perceive as years of neglect and exploitation.
