Sitemap :: Feedback :: Contact Us    
 General Information (Pension)
National Pension Delivery System
 Pension : Civil
About the Division
Roles & Responsibilities
Rules & Regulations
Contact Person List
 Pension : Armed Forces
About the Division
Roles & Responsibilities
Rules & Regulations
Contact Person List
Pension Overview

The National Pension Plan and the Armed Forces Pension Plan are the two but separate pension schemes covered under the National Pension & Provident Fund Plan. The National Pension Plan currently covers salaried national employees such as civil servants, employees of the State Owned Enterprises and Joint Sector Companies. The Armed Forces Pension Plan covers the members from the Police and Military.

Both the schemes evolved out of the earlier Government Employees Provident Fund Scheme managed and administered by Royal Insurance Corporation of Bhutan. The GEPF scheme, which provided lump sum benefit on retirement, proved to be insufficient and inadequate instruments for old-age security, especially in Bhutan with a capital market and insurance development in an early stage. Empirical evidence showed that the lump sum amount received from such scheme barely covered the expenses of the retirees for a short period (over a period of three to four years) after retirement. Most retirees were then left without any regular income to support their livelihood thus forcing them either to look for some sort of menial employment or depend on the income of the children.

The inadequacy of this lump sum payment prompted the Royal Government to initiate a formal old-age income security System by restructuring the GEPF Scheme into a multi-tiered retirement plan. An annuity based pension plan was one of its main component and was aimed at providing:

  • Post service retirement pension benefits to its Members;
  • Income security in the event of permanent disability;
  • Social support to spouse(s) and dependent children in the event of the death of a Member; and
  • Compulsory savings plan for the salaried Employees.

The Plan is, therefore, aimed at providing old age pensions (a social safety net involving redistribution from the higher income to the lower income brackets) and a savings vehicle (to allow individuals to distribute their own income across their lifetimes to avoid poverty in old age).

The Plan commenced payment of pension benefits to the retiring members with effect from 1st July 2002. Three beneficiaries were awarded the first pensioners certificate by His Excellency, Lyonpo Khandu Wangchuk, the then Head of the Government, as an auspicious token to mark the commencement of pension benefit payments during the inaugural ceremony of the NPPF held on 3rd July, 2002.

Downloads : Civil
Civil Rules & Regulations
Membership Information
Monthly Contribution
Provident Fund Benefit
Retirement Pension
Early Retirement Pension
Pension during Waiting period
Pension Benefits before 10 years and 20 years
Permanent Dsiablity Pension
Surviving family Pension Claim
Orphan Pension Claim
Dependent Parent Pension
Taxation System
Pension Delivery System
Claim procedures for Benefit Payment
Downloads : Armed forces
Armed Foces Rules & Regulation
Normal Retirement Claim
Early Retirement Claim
Spousal Benefit Claim
Children Benefit Claim
Orphan Benefit Claim
Disability Claim
Click here to download
Adobe Acrobat
Legal Disclaimer | Privacy Statement    
Copyright © 2003-2004 - National Pension & Provident Fund, Thimphu, Bhutan