Investor Presentaiton
1.
Pension: Historical background in Nepal
• Started in 1936 for army personnel.
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(Later, extended to other government employees.)
The pension system is non-contributory and the total liability of pension and
gratuity is financed from annual appropriation of government budget.
First Pension scheme was established for the army personnel on 17th bhadra
1998 BS. (Pension amount was 1/5 of salary; paid till death)
Pension for civil servants was established In 14th Mangsir 1999. Pension
amount was 1/6 of salary. With a minimum of 25 years service for eligibility.
Civil servants having at least 20 years service are eligible to receive pension for
life.
Amount of pension for civil servants not be less than 50% of basic salary and
not more than 100% depending upon length of service, last drawing salary and
denominator.
After democracy in 1950, Pension payments were formalized and paid monthly.
A non-contributory social pension/old-age allowance scheme introduced in
1995 provides allowances to older people aged 75 years (Now 70) and above.
Allowances to poor widows aged 60 and above is provided.
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