PNB Employees request Management to Allow Freedom to select Pension Fund

Punjab National Bank Employees have requested Management to allow autonomy to select pension fund and investment pattern.

Read AIPNBOA Letter

We had, through our letters dated 07.11.2024 to earlier MD & CEO and dated 09.04.2025 with present MD & CEO have taken up the critical issue of providing autonomy to our officers and employees under the National Pension System (NPS) to choose their Pension Fund Manager (PFM) and investment scheme as per regulatory provisions. We have again taken up this issue with our MD & CEO vide letter dated 09.06.2025. The excerpts of the letter are reproduced for the information of our members.

With greetings,

Dilip Saha
General Secretary

EXCERPTS OF OUR LETTER DATED 09.06.2025 TO MD & CEO

We had, through our letters dated 07.11.2024 to earlier MD & CEO and dated 09.04.2025 with you have taken up the critical issue of providing autonomy to our officers and employees under the National Pension System (NPS) to choose their Pension Fund Manager (PFM) and investment scheme as per regulatory provisions. However, to our collective dismay, the issue remains unresolved despite its enormous implications on the financial future of more than 81,000 employees of Punjab National Bank.

While PFRDA regulations have long granted subscribers the right to modify their investment allocation up to four times a year and change their Pension Fund Manager once a year, our Bank continues to force all its employees into the SBI Corporate CG scheme — a fund that has consistently ranked as the worst performer among all 11 PFMs across every timeframe.

As per a Mint article dated 13.05.2025 titled “How red tape is costing public sector bank employees crores in NPS savings”, SBI PFM’s equity scheme delivered a return of merely 2.06% in the last one year, while DSP PFM returned 20.06% in the same period. This isn’t an anomaly — as per NPS Trust data (30.05.2025), SBI PFM has given the lowest returns not just in equity but also in Corporate CG (Opted by our bank), APY, Lite, and State/Central Government schemes over 1, 3, 5, 7, 10 years and since inception.

Forcing employees into a fund that delivers a fraction of industry returns, with no option to diversify or switch, is equivalent to institutionalized erosion of their retirement savings. As per the same article, even a modest monthly contribution of Rs. 20,000 over 30 years could lead to a corpus of Rs. 3.66 crore at 9% CAGR and Rs. 6.98 crore at 12% CAGR — a loss of over Rs. 3 crore simply because of denial of choice. This is not just about data — it is about trust, justice, and accountability.

We also place on record that the PFRDA Ombudsman, acting under Regulation 24 of the Grievance Redressal Regulations, 2015, has formally directed the Bank to explore resolution by mutual agreement, after numerous officers filed identical grievances. Yet, till date, there has been no transparent progress or official implementation roadmap.

Other institutions — Bank of India, Indian Overseas Bank, Punjab & Sind Bank, Indian Bank, LIC, RBI, Regional Rural Banks (including those sponsored by our Bank) — have already enabled subscriber-level choices. Even Union Bank of India, via Circular No. 8607 dated 07.04.2025, has moved to subscriber-level model with helpdesk support and educational modules for employees.

Our employees, who are financial professionals, capable of managing loan books of several crores and advising clients on financial planning, are ironically denied control over their own retirement savings. Every day’s delay translates into direct monetary loss and growing resentment.

We earnestly request your immediate and personal intervention to:

• Implement the PFRDA-compliant facility for selection of PFM and investment scheme at subscriber level, and
• Ensure value-dated credit of NPS contributions.

The employees of PNB deserve nothing less. Their retirement security, built on decades of loyal service, must not be left to chance — or to the lowest return. We hope management would take swift action on this issue without any more delay and without waiting for any more reminders. Kindly instruct concern division to acknowledge.

Yours sincerely,

Sd/-
Dilip Saha
General Secretary