Citizen Investment Trust Expands Clarity on Citizen Pension Scheme as Public Interest Rises

As the number of Nepalis seeking long-term financial security continues to grow, the Citizen Investment Trust (CIT) has issued a detailed set of frequently asked questions (FAQs) to clarify key aspects of the Citizen Pension Scheme, 2076—a contributory retirement program designed to ensure a stable income for citizens in old age. Officials say the scheme has witnessed rising participation, particularly among workers outside formal pension systems.

According to CIT, any Nepali citizen can join the scheme by filling out the KYC form provided by the Trust and obtaining a pension account number. The process has also been digitized, allowing applicants to open their accounts online through the official website. This move, officials say, is expected to ease enrollment for Nepalis living both inside and outside the country.

Flexible Savings Options to Encourage Long-Term Participation

Participants can deposit a minimum contribution of Rs 500 per month, with the flexibility to choose monthly, quarterly, half-yearly, or annual deposits. CIT has clarified that individuals who wish to deposit larger amounts may do so by dividing the intended sum into units equivalent to ten times the monthly contribution—ensuring a transparent and standardized system.

Deposits can be made through any NIC ASIA Bank branch into the designated CIT pension account or through digital channels such as ConnectIPS and eSewa. When using digital payments through the dedicated pension module, account holders are not required to submit separate deposit reports, reducing administrative burdens for contributors.

Eligibility for Pension: Age, Contribution Period, and Exceptions

Participants become eligible to receive a lifelong pension once they reach the age of 60 and have contributed for a minimum of 15 years. CIT has also addressed a common concern: individuals who turn 60 before completing the 15-year requirement are still eligible for pension benefits if they clear the remaining contribution in a lump-sum amount.

The monthly pension amount is calculated by combining the total deposits made by the participant with the interest or investment returns accumulated over the years. The final corpus is then divided by a fixed factor of 170, determining the monthly pension paid for the rest of the participant’s life.

Protection for Spouses and Legal Heirs

The scheme includes important social security provisions. If a pension recipient dies, their spouse continues to receive the same lifelong pension. In cases where both husband and wife are pension holders, each can receive their respective pension independently.

If both spouses pass away, the remaining balance in the participant’s pension account is transferred to the legal heirs, ensuring that savings are not lost but passed on to the next generation.

For participants who die before reaching pension age, CIT guarantees that the accumulated amount—along with interest and investment returns—will be paid out in full to the rightful beneficiaries.

Options for Refund and Early Withdrawal

Participants who complete the 15-year contribution requirement but do not wish to receive a pension may opt for a full lump-sum withdrawal. Early withdrawal, however, is restricted. No refunds are allowed before the completion of 24 months of contribution unless under exceptional circumstances such as loss of income, disability, or permanent relocation abroad. After valid verification, the principal amount deposited can be refunded in lump-sum form.

Additional Facilities: Loans, Insurance, and Medical Benefits

One of the unique features of the Citizen Pension Scheme is the range of supplementary benefits designed to support participants beyond retirement.

After five years of contribution, members are eligible to obtain loans of up to 80% of their savings. In cases of death, CIT provides Rs 10,000 to the closest family member to assist with funeral expenses. The scheme also extends medical discount facilities at designated private hospitals.

Beyond this, participants may receive benefits such as accidental insurance coverage, education loans, housing loans, and easy-term borrowing depending on prevailing CIT policies. Officials note that these features are intended to position the pension scheme as a broader social security tool—not merely a savings program.

Inclusiveness for Older Citizens

Individuals who are already close to the age of 60 but have not contributed earlier can still join the pension scheme. However, they must deposit in lump sum the total amount equivalent to the remaining months needed to fulfill the 15-year requirement. This provision ensures that late entrants are not excluded from the opportunity to secure a stable retirement income.

CIT Calls for Informed Participation

The Citizen Investment Trust urges the public to make informed decisions regarding long-term financial planning. With no universal pension system covering all Nepali citizens, the Citizen Pension Scheme aims to fill the gap by offering guaranteed, lifelong income support.

Officials believe that as public awareness increases, participation in the scheme will grow—ultimately strengthening social protection for millions of Nepalis who do not have access to government or employer-backed pensions.

For queries, CIT has provided official emails: [email protected] and [email protected].