National Pension and Provident Fund

r providing supervision, guidance and advices on the
operations of the National Pension and Provident Fund. After taking over the Government Employee's Provident Fund (GEPF), which had been in effect since 1976 administered by the Royal Insurance
Corporation of Bhutan (RICB), it was restructured and replaced by the National Pension and Provident Fund Plan. It constitutes a two-tiered old age protection plan with the objective to provide monthly income as well as lump sum payment to the members on retirement. Tier 1 covers the National Pension
Plan, which is a partially funded Pay-As-You-Go system defined benefit scheme. It is an old age security protection scheme that obtains contributions during the working period and provides benefits after retirement to its members and their spouses. Tier 2 covers the National Provident Fund Plan, which is a
fully funded defined contribution scheme. Under the scheme, members receive lump sum payments of accumulated balances upon retirement.