Citizen Investment Trust And Rainas Municipality Sign MoU For Citizen Pension Scheme

28th July 2026, Kathmandu

The Citizen Investment Trust, officially known as Nagarik Lagani Kosh, has signed a Memorandum of Understanding with Rainas Municipality in Lamjung district to implement the Citizen Pension Scheme.

CIT Signs MoU with Rainas Municipality

The initiative is designed to provide long-term social security and structured retirement savings for contractual employees working under the municipal administration.

The formal agreement was signed on Monday by Shobha Shrestha Subedi, Acting Executive Director of the Citizen Investment Trust, and Khadga Bahadur Gurung, Mayor of Rainas Municipality.

Equal Monthly Contribution Model

Under the terms specified in the agreement, Rainas Municipality will formally enroll its contractual workforce into the pension program.

The scheme operates on a matching contribution framework:

• Rainas Municipality will contribute NPR 2,500 per month for each participating contractual employee.
• Each participating employee will contribute an equal amount of NPR 2,500 per month from their remuneration.
• The total monthly deposit credited to the individual pension account will equal NPR 5,000.

Pension Benefits And Retirement Terms

According to the rules governing the Citizen Pension Scheme, enrolled workers become eligible to receive payout benefits upon reaching 60 years of age.

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Participants can choose between two payout options:

• A lump-sum disbursement of the total accumulated fund balance.
• A regular monthly pension distribution structured under Trust regulations.

Survivor Benefits And Spousal Provisions

The agreement incorporates specific survivor protection clauses to safeguard participant families:

• If a participant passes away or is declared legally missing after pension payments begin, the designated surviving spouse will receive the ongoing pension benefits according to scheme provisions.
• If both spouses pass away, any remaining balance in the personal pension account will be transferred directly to the designated legal heir.

Record Keeping And Administrative Responsibilities

Rainas Municipality assumes primary administrative responsibility for maintaining up-to-date employee records. The municipality will manage and verify personal information, Know Your Customer details, and individual account records before submitting updates to the Citizen Investment Trust.

Account Management Flexibility Upon Service Termination

The agreement outlines specific provisions for account handling if an employee leaves municipal service or if regular municipal contributions cease:

• The participating individual retains the right to continue managing and depositing into the pension account independently.
• Alternatively, the participant may elect to withdraw the accumulated account balance in accordance with Trust regulations.

The strategic partnership aims to enhance social protection for contract staff by fostering disciplined savings and long-term financial security for non-permanent public sector workers.

For More: CIT Signs MoU with Rainas Municipality