Công văn 2300/BHXH-THU

To: Social Insurance Office of district

Currently, the issuance of multiple social insurance books to an insured employee occurs very commonly in Ho Chi Minh city, which results to many difficulties in managing insured employees, closing social insurance books as well as paying social insurance benefits to the insured. Pursuant to the Decision No.1111/QĐ-BHXH dated October 25, 2011 of Vietnam Social Security on enforcing Regulations over the management of receipts of social and health insurance budget, social insurance books as well as heath insurance cards, Ho Chi Minh City’s Social Insurance Department provides instructions for examining and double-checking the database to perform the consolidation of social insurance books for multi-book holders as follows:

I. DOUBLE-CHECKING DATABASES PRIOR TO THE ISSUANCE AND CLOSING OF SOCIAL INSURANCE BOOKS AND HANDLING OF CLAIMS OVER SOCIAL INSURANCE BENEFITS IN A LUMP SUM.

1. Double-checking prior to the issuance of new social insurance books:

- On receipt of a documentation that an employing company/organization (hereinafter referred to as the employer) submits to apply for the issuance of social insurance books, the collecting officer must check the insured employee's ID number with the database on the SMS system in order to determine whether they have already granted a social insurance book. If the insured employee has not held a social insurance book, the issuance of a new social insurance is required

+ If an insured employee has been granted a social insurance book, the registered number recorded on such an insurance book shall be accepted to manage the receipts of social, unemployment and health insurance budgets.

+ If the insured employee has been granted multiple social insurance books, the registered number recorded on the latest social insurance book issued by the City’s Social Insurance Department shall be temporarily accepted to manage the receipts of social, unemployment and health insurance budgets. Simultaneously, a written notification shall be sent to the employer to ask their insured employees to submit all of insurance books that they hold to perform the consolidation of these social insurance books according to legal regulations (following the attached form).

- Where the requesting employer registers the social insurance for new insured employees who have already kept their insurance books, the collecting officer must also check their ID numbers with the database on the SMS system to determine whether they hold multiple insurance books as well as notify the requesting employer to ask these insured employees to hand in their insurance books to proceed to merge such insurance books under legal regulations. Simultaneously, the collecting officer must also look up into the storage of annulled insurance books to check whether that insurance book number has been annulled. If the annulled insurance number of those who are granted multiple insurance book has been found, a new insurance book or an insurance book that temporarily adopt the registered number on the latest insurance book issued by the City’s Social Insurance Department shall be reissued in compliance with the above-mentioned regulations.

2. Double-checking prior to the closing of social insurance books:

On receipt of the request for the closing of social insurance books, the insurance book/card issuer must compare the insured labor’s ID number with the database on the SMS system to determine whether they are granted multiple social insurance books. Where they have been granted multiple insurance books, the issuer must continue to check whether multi-book holders have received the lump-sum benefits or whether their insurance books have been annulled. Then, a written notification shall be sent to the requesting employer to ask their insured employees to hand in their valid insurance books to file them in the documentation to proceed to merge such social insurance books.

3. 3. Double-checking prior to the payment of the retirement pensions and lump-sum insurance benefits:

The double-checking must be carried out as guided in the document No.1435/BHXH-CĐBHXH dated May 16, 2013 of the City’s Social Insurance Department.

4. Double-checking process shall be done as follows:

4.1. Steps in accessing the SMS system to verify the ID number: Click menu “Verification” => “Participation process” (F10) >> click “Summary” >> enter ID number in the box CMT >> click the button (...) to check whether the insured is granted multiple insurance books.

4.2. Check all of social insurance books that have been issued in the database of lump-sum insurance benefits and annulled books at the address: http://tracuu.vssic.gov.vn to determine which social insurance books are valid and then request the consolidation.

II. PRINCIPLES OF THE CONSOLIDATION OF SOCIAL INSURANCE BOOKS:

1. Insured employees must return their duplicated insurance books to their current employers or any latest employer who closes their insurance books to produce a documentation which will be then submitted to the social insurance offices for the consolidation of these insurance books. If the latest employer is dissolved, insured employees can submit their insurance documentations to the social insurance office where the latest employer registered their social insurance for the consolidation of the social insurance books.

2. Merge all data regarding the contributions to unpaid social and unemployment insurance benefits into a master record (hereinafter referred to as master book) which is considered the very first insurance book (irrespective of paid or unpaid social insurance benefit in a lump sum), and the registered number of social insurance books after being merged shall be retained to continue their participation into the social insurance; revoke and annul any other duplicated insurance books (together with their registered number).

3. With reference to the insurance books of which the contributions to social and unemployment insurance are paid repeatedly, upon carrying out the consolidation of social insurance books, the defined period of social and unemployment insurance contributions shall be prioritized as follows:

+ The period of the contributions to social and unemployment insurance that has been finally closed at other cities and provinces.

+ The period of the contributions to the earliest social and unemployment insurance that has been finally closed.

+ Where both social and unemployment insurance contributions are paid.

+ Where both social and unemployment insurance contributions are paid by an employer who pays insured employee higher wage.

Where the final recording of insurance books have been done with the insurance contributions that have been paid at the same period and at other cities or provinces, insured employees are requested to contact the social insurance offices at these locations to repeat the final recording of their insurance books. If insured employees send a request for the insurance cancellation, the period of the contributions to social and unemployment insurance shall be retained in order of priority mentioned above.

4. There shall be no reconsideration over any benefit that has already been received in a lump sum before the effective date of this document, except for the following cases:

4.1. Where an insured employee has been granted multiple insurance books but the second (or third) book has stated that the lump-sum insurance benefit has been received in Ho Chi Minh city, rate of insurance benefit that is paid to that insured employee must be re-computed from the receipt of final lump-sum insurance benefit to earlier payment periods.

4.2. Where social insurance books has been recorded with the receipt of lump-sum benefits but the unemployment insurance is still in process, it shall be reserved for later use on condition that such insurance books have been handled in accordance with regulations. Where the receipt of lump-sum insurance benefits is in contrast to regulations (the period of resignation is not equal to 12 months) or unemployment compensation has been recorded in the latter insurance book, the period of contributions to the previous unemployment insurance shall not be reserved.

5. Where an insured employee fails to provide insurance books for the consolidation (due to some reason for not attaining the books, short-time insurance period or loss, etc.) and that insured employee has sent a written commitment to annulling these insurance books, the related contributions to social and unemployment insurance shall be closed (according to the plan KB and KT).

6. Where an employer who is responsible for paying the insurance premiums fails to fulfill their contribution obligation to insured employees (attached with their explanation letter), merging their contributions into the earliest social insurance books shall be permitted without any request for insurance book return. That period of contributions to social and unemployment insurance shall be temporarily locked (according to the plan NB and NT). Whenever the employer makes full payment, the additional amount of contributions shall be recorded for the final closing.

7. The cover page of social insurance book shall be reissued for the current insurer's management in the following cases:

- The step mentioned in Point 5 has completed.

- The master book has been submitted for the payment of lump-sum insurance benefits.

- Insured employees fail to retrieve their master books due to dissolution of their employers in case of unclosed insurance books.

8. Where the consolidated insurance books have recorded the contributions to social and employment insurance at the same period but lump-sum social subsidies or unemployment compensations has not been paid yet, the social insurance offices shall recover that period after social insurance benefits that were paid previously (if any) have been reclaimed through the insured’s current employer, in case of being dissolved, directly to insured employees.

9. Where the consolidated insurance books have recorded the contributions to social and employment insurance at the same period but unemployment compensation has been paid, the social insurance offices shall reimburse the recurring amount of insurance contributions only after reclaiming all of social insurance benefits that have been paid previously (if any) through the current workplaces. In case of being dissolved, directly to insured employees. As regards the unemployment compensation is paid in contrast to regulations, the social insurance office only reclaims the paid amount to recover the insurance contribution period of unemployment insurance when referring to opinions from the Department of Labour, War Invalids and Social Affairs.

Note: Where an insured employee holds different insurance books and he/she managed to claim lump-sum insurance benefit on one or more of them at other provinces, rate of insurance benefit shall not be re-computed as regulated at point 4.1 above. However, the data of social and unemployment insurance contributions shall be locked for the period before the claim over lump-sum insurance benefits and all relevant books shall not be revoked.

III. SEVERAL NOTES ON THE CONSOLIDATION OF INSURANCE BOOKS:

1. Receiving division:

- Guide the employer and insured employees to specify the current status of their social insurance books and transfer their insurance documents to specific divisions.

2. Collecting division:

- Collect data and keep an additional entry of social and unemployment insurance contributions that have been transferred from other cities and provinces to current workplaces according to the employer’s code CQ000x and each registered number of equivalent social insurance book.

- Merge all data regarding the payment of premiums for unclaimed social and unemployment insurance allowance into a master book and use that registered number to continue to register social insurance; transfer the insured’s documents to the issuer of revoked insurance book or card and then annul any repeatedly-issued insurance book (and registered book number).

- Where different insurance books have the same contribution period, prior to the consolidation, the receiver is obliged to:

+ Release a request note (form C02-TS) transferred to the insurance benefit division to check whether social insurance benefits have been paid to insured employees during the repetitious contribution period.

When detecting the insurance benefits have been already paid, social insurance benefit division shall make a decision on revoking the paid sum to transfer to financial plan division to record a decreasing entry of expenditure in the consecutive financial statement of the employer, concurrently return the form C02-TS to the collecting division to clarify the required information to proceed with the consolidation of the insurance books.

In certain special cases, when the employer infrequently records additional entry of expenditure or the amount of expenditures for short-term insurance benefits lower than the revoked amount, social insurance benefit division shall forward a decision on revoking the amount of insurance benefits and form C02-TS of feedback information to the collecting division in order to request the employer to perform this revocation. After receiving the note of receipts sent by financial plan division to revoke the insurance benefits, the collecting officer shall proceed to complete the required documentation for the consolidation of social insurance books.

+ Release 02 copies of D02-TS form to decrease the period of duplicated contributions paid for social and unemployment insurance, concurrently reduce all of insurance contribution records in the annulled insurance books, increase the unrepeated contribution period equal to the total period in the retained insurance book (exclusive of late-payment interest), use the correction tool of the insurance book number to replace the insurance card number (if any); forward 01 copy of D02-TS form and relevant information (attached hereto) to the employer to reimburse the insured employee for a repeatedly-paid amount of premiums.

3. Insurance book/card issuing division:

3.1. Lock and unlock data:

- Lock all data regarding the period of contributions to social and unemployment insurance if insured employees submit their written commitment to canceling their equivalent period of contributions to social and unemployment insurance through the plans KB (social insurance cancellation) and NT (unemployment insurance cancellation) or lock data through the plans KB (social insurance debt) and NT (unemployment insurance debt) due to which the employer’s social and unemployment insurance books has not been closed.

- Reactivate the locked data and certify any additional record for the following cases:

+ When the employer has paid off all debts and the collecting division sends a report to the book/card issuing division to unlock the data as well as record any additional insurance contribution prior to the final closing.

+ In special cases, due to some unknown reason, if insured employees require a written confirmation for the cancelled contribution period as mentioned at point 5, Part II above, they must provide their social insurance book and submit the request letter; this must be approved by Head of the collecting division or Director of Social Insurance Office of a district to proceed to unlock the data for the additional closing of the insurance books.

Note: Only Social Insurance Office where data of contributions to social and unemployment insurance has been locked is entitled to unlock data and carry out the additional closing.

3.2. Revoke and reissue social insurance books:

- Revoke and annul insurance books (and insurance book numbers) that have completed the consolidation by clicking “Canceling multiple insurance books" on the SMS system.

- Reissue the book binding and print out a separate page to keep a final account of contributions to social and unemployment insurance to match with the figure recorded in the master book

4. Social insurance benefit division:

- Re-compute the rate of lump-sum insurance benefit, applied to cases regulated at point 4.1, Part II of this document.

- Coordinate with financial plan division to revoke social insurance benefits, applied to the consolidated insurance books that record the repetitious period of contributions to social and unemployment insurance forwarded by the collecting division.

IV. PROCESSES OF THE CONSOLIDATION OF SOCIAL INSURANCE BOOKS APPLIED TO BORROW INSURANCE DOCUMENTATION:

- After ceasing to work, if the borrower has not received lump-sum insurance benefit and unemployment compensation, he/she must apply for the correction of his/her legal records and other particulars to match with the reality status.

- In certain cases, if the borrower has received lump-sum insurance benefit and unemployment compensation, no legal record is needed. In case of the lender, this case shall be handled as follows:

+ If the period of contributions to social and unemployment insurance corresponds to the period when the borrower has received the lump-sum insurance benefit, it is considered that the lender has received the insurance benefit and accepted the period of repeated contributions, in which all of contributions to social and unemployment insurance shall be annulled through the plan KB and KT + If the borrower has received the unemployment compensation, the period of repeated contributions to unemployment insurance shall be annulled through the plan KT.

+ The period of preceding contributions to social and unemployment insurance (if any) can be retained. The lump-sum insurance benefit (or unemployment compensation) shall not be additionally paid like the real holder of the insurance book.

Example 1: The insurance book of the borrower: the period of contributions to social and unemployment insurance is recorded from March 2011 to February 2012 and lump-sum insurance benefit has been received. The insurance book of the lender: the period of contributions to social and unemployment insurance is recorded from January 2011 to March 2013 (lump-sum insurance benefit and unemployment compensation have not been received yet). This shall be solved as follows:

- Step 1: Any insurance division that detects the period of repeated contributions to social and unemployment insurance shall establish a request note to annul this period from March 2011 to February 2012 for the borrower, which will be then transferred to the book/card issuing division attached with 02 social insurance books (of the borrower and lender) to proceed to make the cancellation.

- Step 2: Book/card issuing division:

+ Revoke 02 social insurance books.

+ Grant a confirmation letter (according to the attached form) for the retained period of contributions to social and unemployment insurance of the lender (from January 2011 to February 2011 and from March 2012 to March 2013), which will be then sent to social insurance office where the final closing of insurance books has been completed to proceed to reissue the social insurance book.

+ Annul the insurance book number of the borrower on the SMS system by clicking “Canceling multiple books”.

- Step 3: Book/card issuing division of social insurance office where the final closing of insurance books has been completed:

+ Reissue social insurance book to insured employees as well as the period of contributions to social and unemployment insurance as stated in the confirmation letter.

+ Annul the period of contributions to social and unemployment insurance for the lender which coincide with the period of lump-sum insurance benefit paid to the borrower (from March 2011 to February 2012) according to the plan KB and KT.

Like the example mentioned above, if the insurance book of the borrower has just been recorded with the payment of unemployment compensation, the solution shall be the same. However, the period of contributions to unemployment insurance for the lender that coincides with the period of payment for unemployment compensation for the borrower shall be annulled according to the plan KT.

V. SCOPE OF APPLICATION:

This document shall be effective from the signature date. Social insurance office of a district and its relevant divisions are requested to observe the aforementioned instructions. In the course of implementing these instructions, difficulties that arise should be reported to the City’s Social Insurance Department (or its relevant divisions) to seek any proper solution. Other previous instructions regarding this issue in opposition to these instructions provided in this document shall be superseded./.

LETTER OF REQUEST

To:………………………..

Social Insurance Office…………….hereby informs employers of insured employees who participate in social and employment insurance (form D02-TS) in the stage……. month………year………(1) and have been granted multiple social insurance as defined in the following list:

This is hereby to request the employer to inform insured employees and hand in the above-mentioned insurance books to complete the consolidation of these insurance books according to Delivery Form No.304/SO.

If insured employees fail to hand in these insurance books, they must send their clear explanation in writing (form D01-TS) as well as be committed to taking full responsibility for this,/.

Respectfully,

Note:

- As for the issuer of insurance book or card, clearly state “verified list of insurance books (form 01-DS/XNS)” at the blank (1)

- As for the division in charge of social insurance benefits, clearly state “a request letter for the claim over lump-sum insurance benefits (form 14-HSB)” or “the decision and request for the claim over retirement pensions (form 12-HSB)”

INFORMATION SHEET

To:………………………..

Based on the notification of the contribution result for social, health and unemployment insurance in month........year……… of employers, Social Insurance Office............has made a reduction adjustment by an amount of VND....................., which is the amount reimbursed to

Mr. (Mrs.):…………………………………………………….; Insurance Book No…………………..

upon carrying out the consolidation of social insurance books due to the repeated contributions have been paid at different locations,

This is hereby to request employers to refund the above-mentioned sum to the insured employee. 01 copy of D02-TS is attached here./.

Respectfully,

CONFIRMATION

Social Insurance Office…………………………..hereby confirms that

Mr. (Mrs.):…………………………………………………….

Date of birth: ……………./……………../………………….

Social Insurance Code:………………………………..

Social Insurance Office……………….. has revoked social insurance book of Mr. (Mrs.) because he/she has lent others their social insurance documents and already received his/her lump-sum insurance benefits.

Mr. (Mrs.) ……………… is eligible to reserve his/her contributions to social and unemployment insurance contributions but has not received insurance benefits as follows:

This is hereby to request Social Insurance Office…………….. to reissue the social insurance book to the insured employee according to the instructions stated in the official dispatch No…………/BHXH-THU dated ……………… of Ho Chi Minh City’s Social Insurance Department./.