Nghị định 134/2015/ND-CP

DECREE

DETAILING SOME ARTICLES OF THE LAW ON SOCIAL INSURANCE CONCERNING VOLUNTARY SOCIAL INSURANCE

Pursuant to the Law on Government Organization dated December 25, 2001;

Pursuant to the Law on Social Insurance dated November 20, 2014;

Pursuant to the Resolution No. 93/2015/QH13 dated June 22, 2015 of the National Assembly on implementing the policy on lump-sum social insurance payout;

At the request of the Minister of the Ministry of Labor, War Invalids and Social Affairs,

The Government hereby promulgates the Decree detailing some articles of the Law on Social Insurance concerning voluntary social insurance.

Chapter I

GENERAL PROVISIONS

Article 1. Scope

This Decree details some articles of the Law on Social Insurance concerning voluntary social insurance.

Article 2. Regulated entities

1. The voluntary social insurance participants are Vietnamese citizens aged 15 older and are not the persons for whom social insurance is compulsory as prescribed in Clause 4 Article 2 of the Law on Social Insurance.

2. Agencies, organizations and individuals involved in voluntary social insurance.

Chapter II

BENEFITS OF VOLUNTARY SOCIAL INSURANCE

Section 1. RETIREMENT BENEFITS

Article 3. Monthly retirement pension

The monthly retirement pension as prescribed in Article 74 of the Law on Social Insurance is specified as follows:

1. The monthly retirement pension equals the rate of monthly retirement pension multiplied by the average monthly income on which social insurance premiums are based.

2. The rate of monthly retirement pension shall be calculated as follows:

a) For employees who retire from January 1, 2016, to before January 1, 2018, the rate of monthly retirement pension equals 45%, corresponding to 15 years of social insurance premium payment, which shall then be increased by 2%, for men, or 3%, for women, for each additional year of social insurance premium payment, but the total rate must not exceed 75%;

b) For female employees who retire from January 1, 2018 onwards, the rate of monthly retirement pension equals 45%, corresponding to 15 years of social insurance premium payment, which shall then be increased by 2% for each additional year of social insurance premium payment, but the total rate must not exceed 75%;

c) For male employees who retire from January 1, 2018 onwards, the rate of monthly retirement pension equals 45%, corresponding to the number of years of social insurance premium payment listed in the Table below, which shall then be increased by 2% for each additional year of social insurance premium payment, but the total rate must not exceed 75%:

Article 4. The average monthly income on which social insurance premiums are based

The average monthly income as prescribed in Article 79 of the Law on Social Insurance is specified as follows:

1. The average monthly income on which social insurance premiums are based is the average of monthly incomes for which social insurance premiums have been paid in the entire period of premium payment.

2. Monthly incomes for which social insurance premiums have been paid used as a basis for calculation of the average monthly income on which social insurance premiums are based as prescribed in Clause 1 of this Article shall be adjusted as follows:

a) The adjusted monthly income for which social insurance premiums have been paid in a year equals the monthly income for which social insurance premiums have been paid in a year multiplied by the indexing factor of that year;

b) The indexing factor shall be calculated according to the average annual consumer price index announced every year by the General Statistics Office and determined by the following formula:

Where:

- t: any year in the period;

- The indexing factor of year t shall be rounded to the nearest one hundredth and shall not fall below 1 (one).

3. In case a voluntary social insurance participant pays a lump-sum premium for the remaining years as prescribed in Point e, Clause 1, Article 9 of this Decree, the average monthly income on which social insurance premiums are based shall be calculated as prescribed in Clause 1 and Clause 2 of this Article and multiplied by the indexing factor of 1 (one).

4. Annually, the Ministry of Labor, War Invalids and Social Affairs shall prescribe the indexing factor applied to voluntary social insurance participants, according to Clause 2 of this Article and the average annual consumer price index announced by the General Statistics Office.

Article 5. Retirement benefits for persons who previously paid compulsory social insurance premiums

The retirement benefit for persons who previously paid compulsory social insurance premiums set forth in Article 71 of the Law on Social Insurance is specified as follows:

1. The period of time over which compulsory social insurance premiums and voluntary social insurance premiums are paid shall be used for calculation of retirement pension, except for period of time for which lump-sum social insurance payout is paid.

2. Eligibility requirements for retirement pension

Voluntary social insurance participants are entitled to retirement pension in one of the following cases:

a) A person who has paid voluntary social insurance premiums for at least 20 years will receive retirement pension at the age of 60 (for men) or 55 (for women), except the case prescribed in Point b of this Clause;

b) For those who have paid compulsory social insurance premiums for at least 20 years, the eligible requirement ages for receiving retirement pension are specified in Clauses 1, 2 or 4, Article 54, and Article 55, of the Law on Social Insurance;

c) For the female employees who work full time or part time at the People’s Committees of communes, participate in compulsory social insurance and are eligible for retirement pension as prescribed in Clause 3, Article 54 of the Law on Social Insurance but reserve the time of payment of social insurance premiums and continue to participate in voluntary social insurance, they shall be entitled to their retirement pension upon request.

3. The monthly retirement pension equals the rate of monthly retirement pension multiplied by the average monthly salary and income on which social insurance premiums are based set forth in Clause 4 of this Article 4.

For voluntary social insurance participants who have paid compulsory social insurance premiums for 20 or more years, except those described in Point i, Clause 1, Article 2 of the Law on Social Insurance and Point c, Clause 2 of this Article, the monthly retirement pension at least equals the statutory pay rate at the time of retirement pension payment.

4. The average monthly salary and income on which social insurance premiums are based for calculation of retirement pension and lump-sum payout shall be calculated according to the following formula:

Where:

- The average monthly salary on which compulsory social insurance premiums are based must comply with Article 62 and Article 63 of the Law on Social Insurance.

- The total monthly incomes on which voluntary social insurance premiums are based is the total monthly incomes on which voluntary social insurance premiums are based multiplied by the indexing factor as prescribed in Clause 2 and Clause 3, Article 4 of this Decree.

5. The lump-sum retirement pension upon retirement shall be calculated as prescribed in Article 75 of the Law on Social Insurance: half of the average monthly salary and income on which social insurance premiums are based as prescribed in Clause 4 of this Article for each year of social insurance premium payment in excess of the number of years corresponding to the retirement pension rate of 75%.

6. Lump-sum social insurance payout shall be provided in accordance with Article 7 of this Decree. The lump-sum social insurance payout shall be calculated according to the average monthly salary and income on which social insurance premiums are based as prescribed in Clause 4 of this Article.

Article 6. Time for retirement pension payment

1. Retirement pension payment shall begin from the month succeeding the month a voluntary social insurance participant is eligible for retirement pension payment as prescribed in Article 73 of the Law on Social Insurance and Clause 2, Article 5 of this Decree.

2. In case a voluntary social insurance participant pays a lump-sum premium for the remaining years as prescribed in Point e, Clause 1, Article 9 of this Decree in order to be eligible for retirement pension payment, the time for retirement pension payment shall begin from the month succeeding the month in which he/she has paid a lump-sum premium for the remaining years.

Article 7. Lump-sum social insurance payout

1. Voluntary social insurance participants are entitled to lump-sum social insurance payout under Article 77 of the Law on Social Insurance and the Resolution No. 93/2015/QH13 of the National Assembly dated June 22, 2015, on implementing the policy on lump-sum social insurance payout to the employees.

2. An application for lump-sum social insurance payout shall be processed in accordance with Article 109 of the Law on Social Insurance.

3. Applications for lump-sum social insurance payout shall be processed in accordance with Clause 3 and Clause 4, Article 110 of the Law on Social Insurance.

Section 2. DEATH BENEFITS

Article 8. Death benefits for family of voluntary social insurance participants who died and previously paid compulsory social insurance premiums for a period of time

Death benefit received by family of a voluntary social insurance participant who died or is declared dead by the court and previously paid compulsory social insurance premiums for a period of time under Article 71 of the Law on Social Insurance is specified as follows:

1. The period of time over which compulsory and voluntary social insurance premiums are paid shall be used for calculation of death benefits, excluding the time for calculation of lump-sum social insurance payout.

2. The person in charge of funeral of a voluntary social insurance participant are entitled to a funeral allowance which equals 10 times the statutory pay rate of the month in which this participant dies or is declared dead by the court, in one of the following cases:

a) The voluntary social insurance participant has paid compulsory social insurance premiums for 12 months or more;

b) The voluntary social insurance participant has paid social insurance premiums for at least 60 months;

c) The voluntary social insurance participant has resigned and is currently receiving monthly occupational accident benefits or occupational disease benefits;

d) The voluntary social insurance participant is currently receiving retirement pension.

3. In the cases where a voluntary social insurance participant dies or is declared dead by the court, his/her relative set forth in Clause 2, Article 67 of the Law on Social Insurance is entitled to monthly death benefits under Article 68 of the Law on Social Insurance if:

a) The voluntary social insurance participant had paid compulsory social insurance premiums for 15 years or more but had not received lump-sum social insurance payout; or

b) The voluntary social insurance participant had suffered from whole person impairment of at least 61% and was receiving monthly occupational accident benefits or occupational disease benefits;

c) The voluntary social insurance participant had paid compulsory social insurance premiums for at least 15 years and was receiving retirement pension.

4. In the event a relative who is entitled to monthly death benefits described in Clause 3 of this Article wishes to receive lump-sum death benefits, he/she is entitled to such benefit described in Clause 2 or 3, Article 81 of the Law on Social Insurance, except for under-6 children, and children or spouses who suffer from whole person impairment of at least of 81% or more.

5. In the event a voluntary social insurance participant who dies or is declared dead by the court without any relatives set forth in Clause 6, Article 3 of the Law on Social Insurance, the person entitled to lump-sum death benefit shall be identified in accordance with the law on inheritance.

Chapter III

THE SOCIAL INSURANCE FUND

Article 9. Premium payment methods

The methods of payment of voluntary social insurance defined in Clause 2, Article 87 of the Law on Social Insurance are specified as follows:

1. Voluntary social insurance participants may select one of the following methods to make payment to the retirement and death benefit fund:

a) Payment every month;

b) Payment every 03 months;

c) Payment every 06 months;

d) Payment every 12 months;

dd) Lump-sum payment for up to 5 years;

e) Paying a lump sum premium for the remaining years: A person who has reach the statutory retirement age and has paid social insurance premiums for at least 10 years may pay a lump sum premium for the remaining years to be entitled to retirement pension.

2. In the event a social insurance participant who has reached the statutory retirement age and has paid social insurance premiums for less than 10 years may continue to pay periodic voluntary social insurance according to one of the methods described in Points a, b, c, d and dd, Clause 1 of this Article until the requirements of Point e Clause 1 of this Article are met and then pay a lump sum premium for the remaining years to be entitled to retirement pension.

Article 10. Premium

The voluntary social insurance premiums described in Clause 1, Article 87 of the Law on Social Insurance and according to the payment methods described in Clause 1, Article 9 of this Decree are specified as follows:

1. The monthly premium equals 22% of the monthly income decided by the voluntary social insurance participant.

The monthly income decided by a voluntary social insurance participant must at least equal the poverty line in rural areas as prescribed by the Prime Minister and must not exceed 20 times the statutory pay rate at the time of payment.

2. The premium for every 3, 6 or 12 months equals the monthly premium set forth in Clause 1 of this Article multiplied by 3, 6, 12 respectively.

3. The lump-sum premiums for multiple subsequent years set forth in Point dd, Clause 1, Article 9 of this Decree equal the monthly premium multiplied by total number of months of these years and apply a discount at the social insurance fund’s average monthly investment interest rate announced by the Vietnam Social Security in the year preceding the year of payment.

4. The lump-sum premiums for the remaining years set forth in Point e, Clause 1, Article 9 of this Decree equals the total monthly premiums of the remaining period plus an interest at the social insurance fund’s average monthly investment interest rate announced by the Vietnam Social Security in the year preceding the year of payment.

5. In case a voluntary social insurance participant applies any of the payment methods as prescribed in Clause 2 and Clause 3 of this Article and during that period the Prime Minister adjusts the poverty line in rural areas, payment of the difference is not required.

6. In case a voluntary social insurance participant applies any of the payment methods prescribed in Points b, c, d, and dd, Clause 1, Article 9 of this Article, he/she shall have part of the paid premiums refunded if during that period he/she:

a) switches over from voluntary social insurance to compulsory social insurance;

b) receives lump-sum social insurance payout as prescribed in Article 7 of this Decree;

c) dies or is declared dead by the court.

The amount to be refunded to the voluntary social insurance participant in the case prescribed in Point a and Point b of this Clause or to his/her relative in the case prescribed in Point c of this Clause equals the paid premium amount corresponding to the remaining period of payment according to the abovementioned method and excludes the assistance provided by the State (if any).

Article 11. Change of payment method and monthly income on which voluntary social insurance premiums are based

Voluntary social insurance participant may change the payment method or monthly income on which voluntary social insurance premiums are based. This shall be made only after having completed the previously selected payment method.

Article 12. Time of premium payment

1. The time of payment of social insurance premiums according to the methods described in Points a, b, c and d, Clause 1, Article 9 of this Decree is specified as follows:

a) Within a month, for the method of payment every month;

b) Within 03 months, for the method of payment every 03 months;

c) Within the first 04 months, for the method of payment every 06 months;

d) Within the first 07 months, for the method of payment every 12 months;

2. The time of payment of social insurance premiums in the case of lump-sum premium payments for multiple subsequent years or lump-sum premium payments for the remaining years described in Point dd and Point e, Clause 1, Article 9 of this Decree is the time of registration of the premium payment method and monthly income on which premiums are based.

3. Past the time of social insurance premium payment prescribed in Clause 1 of this Article, if a voluntary social insurance participant fails to pay social insurance premiums, he/she shall be considered having suspended paying voluntary social insurance premiums. The person who suspends the payment of voluntary social insurance premiums and then wishes to continue the payment, he/she shall re-register with social insurance agencies the payment method and monthly income on which social insurance premiums are based. In the event he/she wishes to make payment for the months he/she suspends the payment, the amount of payment equals the total premiums of the months they suspend the payment, plus an interest at the social insurance fund’s average monthly investment interest rate announced by the Vietnam Social Security in the year preceding the year of payment.

Article 13. Procedures for change of premium payment method and monthly income on which voluntary social insurance premiums are based

1. Application for change of payment method and monthly income on which voluntary social insurance premiums are based includes:

a) The social insurance book;

b) The declaration form for social insurance participation.

2. Processing of applications for change of payment method and monthly income on which voluntary social insurance premiums are based.

a) The voluntary social insurance participant shall submit an application described in Clause 1 of this Article to a social insurance agency;

b) Within the day, the social insurance agency shall decide whether to grant the application, if the application is satisfactory, or reject it and provide explanation.

Article 14. Assistance with social insurance premiums for voluntary social insurance participants

1. Assistance rates and persons eligible for assistance:

A voluntary social insurance participant receives the State’s assistance with premiums in percentage (%) of monthly social insurance premiums based on the poverty line in rural areas as prescribed in Clause 1, Article 10 of this Decree, to be specific:

a) 30%, for a voluntary social insurance participant who is in a poor household;

b) 25%, for a voluntary social insurance participant who is in a near-poor household;

c) 10%, for other persons.

Agencies, organizations and individuals are encouraged to provide assistance with social insurance premiums for voluntary social insurance participants.

Based on socio-economic development conditions and State budget capacity in each period, the Government shall consider adjusting the assistance rates for voluntary social insurance participants as appropriate.

2. The duration of assistance must depend on the actual period of voluntary social insurance participation of each person but must not exceed 10 years (120 months).

3. Assistance methods:

a) A voluntary social insurance participant eligible for the assistance shall pay social insurance premiums within his/her payment responsibility to a social insurance agency or voluntary social insurance premium collection agent designated by a social insurance agency;

b) Every 3, 6 or 12 months, the social insurance agency shall make a list of those eligible for the assistance, premiums collected from these persons and the sum provided by the State budget according to the form issued by the Vietnam Social Security after reaching agreement with the Ministry of Finance, and submit the list to a finance authority for transferring the expenses to the social insurance fund;

c) Based on the regulations on local budget management decentralization, the list of voluntary social insurance participants and the expenses provided by the State budget and transferred by social insurance agencies, the finance authority shall transfer such expense to the social insurance fund every quarter. By December 31 of a year, the finance authority shall complete the transfer of expenses to the social insurance fund of that year.

4. The expenses for social insurance premiums for voluntary social insurance shall be covered by the local government budget according to the current State budget decentralization; or by the central government budget for the local governments having difficulties in budget.

Article 15. Procedures for receipt of assistance with voluntary social insurance premiums

1. An application for assistance by the persons prescribed in Point a and Point b, Clause 1, Article 14 of this Decree, includes:

a) The declaration form for voluntary social insurance participation, for the person who registers voluntary social insurance participation for the first time;

b) The declaration form for changing personal information, for the person who has participated in voluntary social insurance.

2. Processing of applications for assistance with voluntary social insurance premiums.

a) The voluntary social insurance participant shall submit an application described in Clause 1 of this Article to a social insurance agency.

b) Within the day, the social insurance agency shall decide whether to grant the application, if the application is satisfactory, or reject it and provide explanation.

Chapter IV

IMPLEMENTATION CLAUSE

Article 16. Transition clause

1. The provisions of this Decree apply to persons who have participated in voluntary social insurance before January 1, 2016.

2. For persons currently receiving monthly retirement pension before January 1, 2016, previous regulations shall still apply and they will have their retirement pension adjusted.

3. Voluntary social insurance participants who previously paid compulsory social insurance premiums, also including region-based allowance are entitled to not only retirement pension, lump-sum social insurance payout and death benefits but also lump-sum region-based allowance in accordance with the law on compulsory social insurance.

4. For voluntary social insurance participants who are eligible for voluntary social insurance benefits before January 1, 2016, the Law on Social Insurance 2006 shall still apply.

5. For voluntary social insurance participants who have paid premiums according to methods prescribed in Points a, b, c and d, Clause 1, Article 9 of this Decree, including a period following the time of implementation of the policy on assistance with social insurance premiums, they shall not be entitled to the assistance prescribed in Article 14 of this Decree for the period they have paid the voluntary social insurance.

6. The whole balance of the voluntary social insurance fund prescribed in the Law on Social Insurance 2006 as of December 31, 2015 shall be added to the death and retirement fund in accordance with the Law on Social Insurance 2014.

Article 17. Effect

1. This Decree comes into force from February 15, 2016.

The provisions of this Decree, except those described in Clause 2 of this Article, are applicable from January 01, 2016.

2. The State’s assistance with social insurance premiums for voluntary social insurance participants shall apply from January 1, 2018. The assistance shall not be provided for the period of payment of voluntary social insurance premiums before January 1, 2018, except for a lump-sum premium payment for the remaining years according to the method described in Point e, Clause 1, Article 9 of this Decree.

3. The following documents expire from the day on which this Decree comes into force:

a) The Government’s Decree No. 190/2007/NĐ-CP dated December 28, 2007 on guiding the implementation of some articles of the Law on Social Insurance concerning voluntary social insurance;

b) The Government’s Decree No. 134/2008/NĐ-CP dated December 31, 2008 on adjusting monthly incomes for which social insurance premiums have been paid for laborers participating in voluntary social insurance.

Article 18. Implementation

1. The Minister of The Ministry of Labor, War Invalids and Social Affairs shall be responsible for guiding the implementation of this Decree.

2. The Minister of Finance shall be responsible for ensuring the budget provided for the implementation of the assistance policy for voluntary social insurance participants in accordance with this Decree.

3. Annually, the Vietnam Social Security shall be responsible for announcing the social insurance fund’s average investment interest rate of the preceding year.

4. Annually, the General Statistics Office affiliated to the Ministry of Planning and Investment shall be responsible for promptly notifying the average annual consumer price index to the Ministry of Labor, War Invalids and Social Affairs.

5. Social insurance agencies shall be responsible for comparing the list of voluntary social insurance participants described in Point a and Point b, Clause 1, Article 14 of this Decree with the lists of poor households and near-poor households provided by local governments in order to determine the beneficiaries of poor households and near poor households.

6. Ministers, heads of ministerial agencies, heads of Governmental agencies, and chairpersons of People’s Committees of central-affiliated provinces and cities shall be responsible for implementing this Decree./.