Fidelity Bank Financial Overview
Pressure Point on 2016FY Profit - Staff Legacy Benefits
☐ Fidelity Bank operated two defined benefit schemes that existed prior to the introduction of the national
Contributory Pension Scheme in 2004 as amended under the Pension Reform Act 2014.
☐ All employees who have spent a minimum of 5 years unbroken service are eligible for the Gratuity
Scheme while all employees who have spent a minimum of 15 years unbroken service or attained the
bank's retirement age are eligible for the Retirement Scheme.
☐ Despite the introduction of the national Contributory Pension Scheme in 2004 and having complied fully
with the provisions of the law, the Bank continued with its two legacy schemes making it 3 separate staff
schemes maintained by the Bank.
With the maturation of the Contributory Pension Scheme, the bank discontinued the two legacy schemes
which resulted in a significant increase of N4.8bn in our retirement and gratuity cost for the 2016FY (please
see Note 30 of the 2016FY Audited Accounts).
Under the provisions of the Pension Reform Act of 2004 as amended in 2014, the Bank contributes 10% of
basic salary, rent and transport allowances, with the employee contributing a further 8%. The Bank has no
further payment obligations once the contributions have been paid.
Fidelity bank continues to fully comply with the provisions of the Contributory Pension Scheme
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