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management of both Sainik Drabya Kosh and Nijamati Provident Fund. With this,
the scope of the scheme was extended to cover all government employees including
the police.
Three years after the establishment of Employees Provident fund Department, a
special Act called "Karmachari Sanchaya Kosh (KSK) Act" was legislated in the year
1962. The same year the present Karmachari Sanchaya Kosh was established under
the act as an autonomous provident fund organization.
After the establishment of Karmachari Sanchaya Kosh the previous Sainik Drabya
Kosh, Nijamati Provident Fund and Provident Fund Department were merged into
Karmachari Sanchaya Kosh. Since then Karmachari Sanchaya Kosh has grown by leaps
and bounds and today it stands as a strong social security providing organization in
Nepal.
The rate of provident fund contribution for all employees is ten percent of their
salary, which is to be supplemented by an equal amount by the employer. The total
PF contribution amount is to be sent to Emplyoyees Provident Fund on a monthly
basis when salaries are prepared.

It manages the provident fund of all Army and Police personnel, civil servants,
employees of state owned corporations, and teachers of Government Schools in
Nepal. Similarly, any private sector establishments with more than ten employees
are also eligible to become members, and it also manages the provident fund of their
employees as well. Besides provident fund management, it provides the following
social security benefits:
• Accident Indemnity
• Funeral Grant
• Employees Welfare Scheme (Insurance)
• Participation in Profit

Citizen Investment Trust

Citizen Investment Trust (Nagarik Lagani Kosh), a statutory institute under Citizen
Investment Trust Act, 2047, has ownership of Nepal Government as a public financial
organization. It was established on 4th Chaitra, 2047B.S as an autonomous body.
Formally it has been operating its activities since 1st Magh, 2048. It operates and
manages various types of retirement schemes/programs as well as various unit schemes
and mutual fund program for both domestic and foreign investors to encourage the
people for saving in order to expand fund and increase the investment opportunities
along with the dynamic development of the capital market to contribute economic
development of the nation.

Citizen Investment Trust has been providing various types of voluntary retirement
schemes (Pension funds, Gratuity funds, etc.) and mandatory insurance fund
programs on the basis of fully funded and individual account. Citizen Investment

58 Office Practice and Accounting 10