CIT, Tamakoshi Rural Municipality sign MoU to operate Citizen Pension Scheme

KATHMANDU: Citizen Investment Trust (CIT) and Tamakoshi Rural Municipality in Dolakha district have signed a memorandum of understanding (MoU) to operate the Citizen Pension Scheme.

The agreement was signed on Thursday by CIT Executive Director Shova Shrestha Subedi and Tamakoshi Rural Municipality Chairperson Prona Pratap KC.

Under the terms, monthly contributions to each participant’s account will total Rs 1,500, comprising Rs 500 from the Workers' Welfare Fund, Rs 500 from the rural municipality and Rs 500 from the participating worker.

CIT will supply KYC forms and personal detail cards free of charge for scheme enrolment. The rural municipality is responsible for maintaining up-to-date records of participating workers and their account details.

Pension benefits will begin when participants reach 60 years of age, in line with the Citizen Pension Scheme Operation Procedures, 2076.

If a pension recipient dies or disappears, the surviving spouse will receive the same lifelong pension the participant had been receiving. If both spouses die, the account savings will be paid to the closest legal heir.

Participants who have been in the scheme for at least five years may be eligible to withdraw up to 80% of their deposited amount as a loan, subject to a recommendation from the rural municipality.