Bank of Baroda Employees Request Management to Implement Option to Change Pension Fund Manager and Investment Pattern for NPS

All India Bank of Baroda Officers’ Association has written a letter to CGM HR requesting him to implement option to change pension fund manager and investment pattern for NPS Tier-I contributions.

Read Letter of AIBOBOA

Sh. Shailendra Singh
Chief General Manager (HR)
Bank of Baroda
Baroda Corporate Centre,
Mumbai.

Respected Sir,

Subject: Request for Implementation of Option to Change Pension Fund Manager and Investment Pattern for NPS Tier-1 Contributions

This is in reference to our earlier letter Ref. AIBOBOA:CO:61:2024/317 dated 14th November 2024, regarding the provision of choice to change Pension Fund Managers and modify the investment pattern/asset allocation under NPS Tier-1 contributions for officers of our Bank.

Despite clear guidelines and circulars issued by the Department of Financial Services (DFS), Ministry of Finance (MoF), and PFRDA, and subsequent clarifications circulated by IBA vide letter No. HR&IR/MBR/2024-25/1110 dated 28.05.2024, the facility has not yet been operationalized in our Bank.

This continued delay is resulting in a significant opportunity cost to our officers. As highlighted earlier, there exists a sizable gap in performance between the currently mandated SBI Pension Fund (under Corporate CG scheme) and other options like UTI and HDFC Pension Funds under Scheme E-Tier-I.

It is also pertinent to mention that many peer Banks have already implemented this facility, thereby offering their employees the flexibility to optimize their retirement savings. This proactive approach by other PSBs underscores both the urgency and practicality of implementing the same in our Bank.

Furthermore, we would like to remind that during the last two Structured Meetings held between the Association and Bank Management, it was agreed that the Bank would implement this provision, in line with the PFRDA/GOI guidelines. However, despite the assurance, it has not become a reality, causing growing concern and dissatisfaction among our officers.

We once again earnestly urge you to treat this matter with utmost priority and implement the facility of changing Pension Fund Managers and investment options without any further delay.

Looking forward to a favorable response at the earliest,

Sincerely yours,
PREM KUMAR MAKKER
GENERAL SECRETARY