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BOI Sets Precedent for PSBs in NPS Policy
Bank of India (BOI) leads public sector banks by allowing employees to select their Pension Fund Manager and scheme under the National Pension System (NPS), a long-awaited development welcomed by the banking community.
Author: Abhivad
Published: November 20, 2024
Bank of India (BOI) has become the first public sector bank to permit its employees to choose their Pension Fund Manager (PFM) and investment scheme under the National Pension System (NPS). This historic decision marks a significant milestone in addressing employee demands for financial autonomy in retirement planning.
Read more at : Bankers Demand Choice in Pension Fund Selection Under NPS
Outcome of Persistent Advocacy
Nilesh Pawar, General Secretary of the Federation of Bank of India Officers’ Associations (FBOIOA), attributed this achievement to relentless advocacy by FBOIOA and the All India Bank Officers’ Confederation (AIBOC). He stated, "Our Bank of India has become the first public sector bank to allow employees to exercise this choice under the NPS scheme." He highlighted the proactive approach of FBOIOA, which engaged the bank’s management across multiple forums, including the Central Consultative Committee (CCC).
While celebrating this milestone, Pawar reiterated FBOIOA’s commitment to broader reforms, including the restoration of the Old Pension Scheme (OPS) for NPS-optee employees. He emphasised that until OPS is reinstated, the association remains dedicated to ensuring employees maximise benefits under the NPS. Other major banking unions like All India Bank Employees Association(AIBEA), AIBOC and Bank Employees Federation of India also maintain their demand to restore the OPS.
IBA and PFRDA Facilitate the Move
This decision follows guidance from the Pension Fund Regulatory and Development Authority (PFRDA) and the Indian Banks’ Association (IBA), which authorised banks to allow this choice to employees, with approval from their managing boards. BOI’s board subsequently issued a circular implementing the change, making it a trailblazer among public sector banks.
Social Media Campaigns Play a Role
The decision comes amidst an ongoing social media campaign by PSB employees demanding equal rights to choose their pension fund managers. The hashtag #NPS_Discrimination has gained traction, amplifying the voices of thousands of banking professionals advocating for policy reform.
BOI’s initiative sets a precedent for other public sector banks to follow. This development reflects the growing influence of employee advocacy and union efforts in shaping policies that empower workers.