CIT to manage Nabil Bank employee retirement fund
KATHMANDU: Citizen Investment Trust (CIT) and Nabil Bank have signed an agreement under which CIT will manage the retirement fund for the bank’s employees.
The pact was signed by Chhabi Raman Adhikari, director of CIT, and Diwas Karki, head of human resources at Nabil Bank. It covers management of both contribution-based and non-contribution-based gratuity funds, as well as an additional retirement fund.
Under the agreement, employees will contribute to the trust through regular monthly and annual deductions. CIT will maintain individual account records for each participating employee and will arrange payment of retirement benefits to retired employees on the recommendation of Nabil Bank.
Employees’ deposits will earn interest and returns and will be eligible for services and facilities as provided under the Citizen Investment Trust Act, its rules, regulations, directives and procedures. The agreement requires Nabil Bank to submit details such as amounts in individual accounts, loan balances and investment information to CIT.
CIT will make retirement payments after deducting taxes in accordance with applicable rules. To facilitate this, Nabil Bank must provide employee details to CIT, remit the deducted amounts on a monthly and annual basis, and recommend payments for retirees.
The agreement also stipulates that retirement, gratuity and additional retirement fund balances currently held in previously approved retirement funds under the Income Tax Act 2058 will be transferred to CIT.
