The news that the Social Insurance (BHXH) will directly pay pensions through bank accounts in all 63 provinces and cities starting in September 2024 is attracting much attention. So, does this mean that from now on, everyone will have to receive their pensions through bank accounts?
Recently, Vietnam Social Security announced that from August 1, 2024, it will directly pay monthly pension and social insurance benefits to beneficiaries through their personal bank accounts in 43 provinces and cities. From September 1, 2024, Vietnam Social Security will implement the method of transferring money through personal bank accounts in the remaining 20 provinces.
For over 10 years, pension and social insurance benefit payments have been handled through a third party, the Vietnam Post Corporation. Since the end of 2023, Vietnam Social Insurance has piloted direct pension payments via bank accounts in 5 provinces and cities, then expanded the program to 43 provinces and cities, and will complete the remaining 20 provinces and cities by September 1, 2024. This means that pension payments via bank accounts will be directly handled by Vietnam Social Insurance, as beneficiary information is stored in the database, while cash payments in the provinces and cities will continue to be handled by Vietnam Post.
Mr. Ha Van Lung, from Group 10, Doi Can Ward, Ba Dinh District, Hanoi, said: After the July payment period, up to 90% of pensioners have switched to receiving their pensions via bank accounts. Therefore, instead of receiving their pensions at the ward's cultural center as before, people now register at the bank to withdraw their pensions once they have been transferred to their accounts. Those who haven't registered to receive their pensions via bank transfer will go to the post office in Cong Vi Ward, more than 2 km away, to collect their pensions. Due to the inconvenience of the long distance, some retired officials have also registered to receive their pensions via bank transfer for convenience.
Meanwhile, lawyer Minh Anh stated: Based on the provisions of Clause 3, Article 18 of the 2014 Social Insurance Law and Articles 93 and 114 of the 2024 Social Insurance Law (effective from July 1, 2025), there are three forms of receiving pensions for employees participating in social insurance: Through the beneficiary's bank account; Directly from the social insurance agency or a service organization authorized by the social insurance agency; and Through the employer.
Therefore, paying pensions via bank account is not mandatory for pensioners. From September 1, 2024, the payment of pensions via bank account will essentially be directly transferred by Vietnam Social Security, not through a third party as before.
According to statistics from the Vietnam Social Security, nearly 3.4 million people nationwide currently receive monthly pensions and social insurance benefits. At a recent meeting on digital transformation of the Social Security system, it was reported that some provinces have achieved nearly 100% of pensioners receiving their pensions through bank accounts, while others have only over 10% receiving their pensions through bank accounts.
It can be seen that receiving pensions or social insurance benefits through bank accounts is a voluntary participation of beneficiaries, not mandatory. However, for the social insurance sector, increasing the target number of beneficiaries receiving pensions through bank accounts is one of the criteria for evaluating performance in digital transformation.
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