The NPPF has initiated the Lotedh Scheme to provide benefit in the event of demise of a pensioner. The Scheme was launched coinciding with the 60th Birth Anniversary of His Majesty the Fourth Druk Gyalpo.

The Lodeth scheme is similar to group-insurance whereby pensioners pay a monthly premium, deducted at source from their monthly pension. The part of the premium is paid to RICBL while the remaining goes to the Lotedth trust fund. The NPPF provides benefit to family member in the event of demise of pensioner. Membership in the scheme is voluntary; and the pensioners can decide to join the scheme at the time of receiving the pension and provident fund benefits from NPPF by completing the form.

The Lodeth Trustee Board manages the scheme which the members are represented from the pensioners. The administrative support is provided by the NPPF.