Kathmandu, November 3:

The government today registered the Provident Fund Formation Bill 2006 in the parliamentary secretariat. The bill has, among others, a provision to provide retirement allowance instead of pension to the government employees after they retire from services. The Ministry of Finance has proposed the bill with a concept of providing retirement allowance instead of pension for the employees who join the government service in the future.

The bill has proposed a provision whereby each government employee will have a retirement fund account in which the employee’s 10 per cent of the monthly salary would be deposited and the government would add 100 per cent to it and the fund can be withdrawn only after one retires from the service.

“Such a programme will help the government reduce its financial burden,” Dr Ram Sharan Mahat while registering the Bill. The Bill has proposed that the new programme be implemented for civil servants, police, armed police and army as per the decision of the government.