Deputy Speaker of the National Assembly Nguyen Khac Dinh presides over the session. Photo: media.quochoi.vn.
Continuing to present 2 options for receiving a lump-sum social insurance payment.
Presenting the report explaining, receiving feedback, and revising the draft Law on Social Insurance (amended), the Chairwoman of the National Assembly's Social Affairs Committee, Nguyen Thuy Anh, stated that regarding the conditions for receiving a lump-sum social insurance payment for individuals who have not reached retirement age, do not continue to pay social insurance contributions, have not contributed for 20 years, and request a lump-sum payment, the Government has submitted two options to the National Assembly.
Option 1 divides workers into two groups: Group 1 includes workers who participated in social insurance before the Law came into effect (expected July 1, 2025), who, after 12 months, are not subject to mandatory social insurance, do not participate in voluntary social insurance, and have less than 20 years of social insurance contributions; Group 2 includes workers who started participating in social insurance from the date the Law came into effect onwards, and are not eligible for the conditions for receiving a lump-sum social insurance payment.
Option 2: Employees receive partial benefits, but not exceeding 50% of the total time they have contributed to the retirement and death benefit fund. The remaining social insurance contribution period is preserved so that employees can continue to participate in and receive social insurance benefits.
Nguyen Thuy Anh, Chairwoman of the National Assembly's Social Affairs Committee, presented the report.
Photo: media.quochoi.vn.
The Chairman of the National Assembly's Social Affairs Committee stated that the majority of opinions within the National Assembly Standing Committee supported Option 1 proposed by the Government, which also reflects the majority opinion of workers in several localities surveyed by the lead agency. However, he requested that the Government promptly develop a support plan and issue appropriate regulations, while also strengthening communication efforts to help workers understand the benefits of receiving a monthly pension instead of choosing a lump-sum social insurance payment.
Regarding late payment of mandatory social insurance contributions, evasion of mandatory social insurance contributions, and handling measures, the draft Law has been revised to clarify the meaning, separating the provisions on each act and the handling measures for late payment and evasion of social insurance contributions. The draft Law has also amended and supplemented the penalty of temporary suspension of exit from the country, stipulating the application of the Law on Exit and Entry of Vietnamese Citizens and the Law on Entry, Exit, Transit, and Residence of Foreigners in Vietnam, and does not yet stipulate the penalty of suspending the use of invoices for acts of late payment and evasion of social insurance contributions.
Regarding the eligibility of business owners to participate in compulsory social insurance, the Standing Committee of the National Assembly has directed that the regulations be revised to include "Business owners of registered business households".
The draft law adds a provision stipulating that those participating in voluntary social insurance are entitled to a maternity allowance of 2 million VND for each newborn child, guaranteed by the state budget, and assigns the Government the authority to adjust the maternity allowance level to suit the socio -economic development conditions and the capacity of the state budget in each period. It also reduces the minimum number of years of social insurance contributions required to receive a monthly pension from 20 years to 15 years.
Delegate Tran Thi Thu Phuoc (Kon Tum delegation) speaks during the discussion. Photo: media.quochoi.vn.
Proposal to integrate the two options for receiving a lump-sum social insurance payment.
Discussing the draft Law and general issues, delegate Tran Thi Thu Phuoc (Kon Tum delegation) argued that all aspects need to be clarified, especially the impacts and effects of the new policies introduced in the draft Law. She also emphasized the need to promote democracy, listen attentively, and share the difficulties and aspirations of workers. "Because for workers, even a single change in a law can determine their social security for their entire lives," the delegate stated.
The issue of receiving lump-sum social insurance benefits continues to be a focus of attention and discussion among National Assembly deputies, as the number of lump-sum social insurance withdrawals increased by 39% in the first quarter of 2024, the highest in many years. Deputy Tran Khanh Thu (Thai Binh delegation) argued that, to ensure adherence to the principles of social insurance and guarantee old-age security for workers, and to minimize complications in implementation, Option 1 fundamentally ensures the continuation of current regulations, avoids social disruption, and limits the situation where individuals participating in social insurance receive lump-sum social insurance benefits multiple times in the past.
Besides opinions agreeing with Option 1, some National Assembly deputies also expressed agreement with Option 2. Concurring with Option 2, Deputy Dao Chi Nghia (Can Tho Delegation) argued that while this option does not eliminate the practice of withdrawing social insurance contributions in a lump sum, it ensures the right of choice for social insurance participants; retains workers in social insurance for the long term; and ultimately ensures social security for workers.
Delegate Tran Thi Hoa Ry (Bac Lieu delegation) participates in the discussion at the session. Photo: media.quochoi.vn.
However, Representative Tran Thi Hoa Ry (Bac Lieu Delegation) and several other National Assembly representatives argued that both options in the draft Law have limitations and are not the most optimal solutions. Representative Tran Thi Hoa Ry proposed combining Option 1 and Option 2, allowing employees to withdraw their direct contributions (8%) in a lump sum based on the actual contribution period. This option would ensure the principle of "contribution equals benefit."
Representative Nguyen Thi Hong Hanh (Ho Chi Minh City delegation) suggested that if there is no optimal solution, the current regulations should be maintained to avoid social disruption and allow workers to choose whether to participate in social insurance before or after this Law comes into effect.
At the same time, delegates also proposed a policy to limit workers from withdrawing their social insurance contributions in a lump sum. This policy involves assigning the social insurance agency to coordinate with the Social Policy Bank to provide workers with interest-free or low-interest loans; the maximum loan amount would equal the amount the worker would receive if they withdrew their social insurance contributions in a lump sum.
Notably, some National Assembly deputies also suggested that the National Assembly consider and approve the draft Law on Social Insurance (amended) after the implementation of salary policy reform (from July 1, 2024) to ensure that the draft Law is appropriate and feasible.
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