(1) If an application is received in accordance with section 63 of the Act for the approval of retirement fund, the department may approve it subject to sub-rule (2).
(2) In accordance with sub-rule (1), when the department grants approval, the retirement fund may grant approval if the following conditions are followed:-
(a) Funds deposited in the retirement fund or received by the retirement fund should be invested only in approved investments, (a1) The paid-up capital should be at least one crore rupees,
(A2) The number of beneficiaries, workers or employees of the agency operating the housing fund should be at least one thousand. (b) If the retirement fund accepts retirement contributions from the employer on behalf of employees or workers, the management of the fund should be done independently of the employer, but this clause shall not apply to employees or workers of the same fund.
(c) Retirement contribution amount should be deposited in the retirement fund within one month of spending in Ashadha month and within fifteen days of spending in other months,
(d) Retirement can be paid to the beneficiary of retirement fund only in the following cases:-
(1) If an employee or worker retires from service,
(2) If the beneficiary attains the age of ninety-eight years, or
(3) If the beneficiary dies or becomes permanently disabled.
(e) The retirement fund should be audited annually by an auditor approved by the Auditor General's Department. Explanation: For the purpose of this rule, "Approved Investment" means an investment made as under:-
(a) Investments made in Citizen Investment Funds established in accordance with prevailing laws,
(b) Investment in bonds issued by the Government of Nepal (c) Investments made in banks operating under prevailing laws related to banking (d) Investments made on the basis of co-financing with banks, and
(e) Investments made to beneficiaries other than their share holders.
(3) If an approved retirement fund that has received approval from the department does not comply with the conditions of sub-rule (2), the approval given to that fund cannot be canceled by the department.Yes.
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(6) Notwithstanding anything contained elsewhere in this rule, the following amounts shall be as follows:-
(a) In the income years before the commencement of the Act, the amount including simple interest accumulated in the employees' or workers' savings fund or citizen's investment fund and the amount of gratuity and accrued leave accrued up to that period shall be exempted from tax, and
(b) Medical treatment expenses up to one hundred and eighty thousand rupees paid to employees or workers who are in service at the time of commencement of the Act and retired from service in accordance with the rules related to their service conditions shall not be included in the income of that employee or worker.