PRESS RELEASE

Pursuant to Pay Revision Notification No.MOF/R-Allowance/2009/3709 dated 13th February 2009 of the Ministry of Finance, the National Pension & Provident Fund would like to announce the implementation of the following changes in the National Pension & Provident Fund Plan duly approved by the Royal Government:

1. Pension benefit level has been changed to 40% of final year basic salary.
2. Maximum salary scale of EX1 position level in the civil service has been established as the maximum pension benefit.
3. Contribution rate has been revised to 22% which comprises of employee's contribution of 11% with matching contribution by employer;
4. Pension benefit shall be indexed to annual average Consumer Price or 7% whichever is lower once every July;
5. Permanent disability and the surviving family benefit levels have also been revised which shall be indexed to annual average Consumer Price or 7%, whichever is lower once every July.

Scope of the change in the Pension plan

1. Under the provision of pension vesting period, those members retiring after 10 years but before 20 years of service shall have right to exercise the option either to wait till 51 years of the age for early retirement pension or 56 years of age for normal pension or withdraw lump-sum amount from pension account with interest.
2. All the changes in the pension system would be applicable to those members retiring after 1st July 2009.
3. The members who have retired on or before 30th June 2009 would continue to operate as per the existing system. However, their pension benefits shall be indexed to Consumer Price once every July after 2010

Information on the revised changes is also available on the NPPF web page www.nppf.org.bt

Issued as per Notification of the Ministry of Finance of 29th May 2009.

The NPPF would like to inform all the agencies and its valued customers that the NPPF’s Bank Account Nos maintained with the BOB branches have been changed in Wangdue, Thimphu and Phuntsholing because of the introduction of the core banking system by the Bank of Bhutan .Therefore, the NPPF would like to request all the agencies and its clients to kindly deposit the Provident Fund Contributions and Loan EMI’s in the following new accounts.

Towards enhancing good governance and facilitating fast and efficient service to its members, the NPPF is pleased to announce the changes in the Service Delivery Rules with immediate effect as follows:

Retirement benefit claim Procedure

This is to notify all the NPPFP members of civil service, corporation and the Armed Forces that the NPPF is taking initiative to regularly compile and update the personal information system of all the members. Therefore, towards providing members with easy access to information, it is developing a system that provides information directly to the members through e-mail, telephone calls and SMS in addition to surface mail. The members and pensioners who have not yet furnished the following details are kindly requested to update the information with us on or before 15 January 2009:

1. Mobile Numbers
2. E-mail addresses
3. New Citizenship Identity Card Number

You may use this format to update the information either by fax or e-mail.

Including spouse beneficiaries

For any clarification, please contact Mr. Jigme Tenzin, Customer Service. Tele. No. 337064, npbjigme@yahoo.com, nppf2008@gmail.com, Fax: 334790/324306

The existing practice of receiving applications for residential quarters and allotment system will be discontinued with immediate effect. However, as and when flats are vacant the management will make the information available in the media and on its website for allotment. The In-charges of the housing colonies will keep the management posted on the availability of vacant flats in their respective areas well in advance.

Further, the retiring member tenant and the family of the demised tenant shall be allowed to continue occupation of the flat upon specific request for a period of one year instead of three and two months as specifiedin clause Nos.19.3 and 19.4 of the NPPF Housing Management Rules and Regulations 2004.

The above amendment to the NPPF Housing Management Rules and Regulations is issued as per the directives of the Board conveyed during its 37th meeting held on July 29, 2008.

-Contributing members of civil and Armed Force Pension.

-Minimum of 1 year contribution to the NPPF at the time of application.

-Contributing members of Civil and Armed Force Pension.

-Minimum of 1 year contribution to the NPPF at the time of Application.

-Up to 70% of the total collateral value.

Monthly repayment to be within the expected rental income from building plus 60% of Net pay or 100% of Net pay (in case of spouse engaged in gainful employment)

-Maximum of Nu.1,000,000/-(Subject to availability of sufficient collateral)

-Minimum of Nu.15,000/-

-Monthly repayment to be within of 60% of Net pay or 100% of Net pay(in case of spouse engaged in gainful employment)

-10% p.a. for new construction

-10% for Repairs and maintenance as well.