Pensions to be at highest possible level under wage reform

What are the options for withdrawing social insurance benefits in a lump sum?

Regarding the provision for receiving a lump-sum insurance payment, Minister Dao Ngoc Dung stated, "This is completely absent from the insurance laws of other countries, especially developed countries."

Minister Dao Ngoc Dung explained that the design of this regulation stemmed from the needs of the workers themselves. Resolution No. 93/2015/QH13 (on the implementation of the policy of receiving a lump-sum social insurance benefit for workers) was issued before the 2014 Social Insurance Law came into effect, to address the situation at that time.

But now, Resolution No. 93 cannot be abandoned because it would give rise to very complex political and social consequences. Therefore, according to the Minister, it should be maintained but on the basis of calculating how to achieve two goals: ensuring the long-term social security of the country, so that when the elderly retire, they all have pensions and health insurance; and at the same time, paying attention to the current real living conditions of workers, because a segment of workers aspires to withdraw from social insurance.

Minister of Labour, Invalids and Social Affairs Dao Ngoc Dung: We will review the method of calculating pensions for the armed forces and report it to the competent authorities.

With the above objectives in mind, the Government has proposed two options (through numerous consultations with international organizations and the organization of workshops and conferences). On May 25th, the Government continued to provide feedback on this matter and concluded that there were no alternative options besides the two presented in the draft law.

After reviewing the proposed options, and considering the integration of both options as analyzed by some delegates, the following was proposed: those currently contributing would continue to benefit under Option 1; those contributing later would benefit under Option 2. However, after consideration, experts assessed that combining the two options would create more disadvantages than advantages. Therefore, the Government continues to submit a proposal to the National Assembly requesting the selection of one of the two options presented by the Government.

“Furthermore, since the Sixth Session, the review and drafting agencies have widely solicited feedback. In particular, based on reports from five localities with high rates of lump-sum social insurance withdrawals, the vast majority of opinions favored option 1, with very few proposing option 2. The Ministry also agrees with the delegates' opinion that, along with policies to restrict lump-sum social insurance withdrawals, we have many solutions, including policies to support workers,” the Minister emphasized.

Adopting the method of calculating pensions in the armed forces sector.

Addressing concerns raised by some delegates regarding the "reference level," Minister Dao Ngoc Dung explained that the "reference level" is essentially a new concept replacing the basic salary, as Resolution No. 27 clearly states the abolition of the basic salary.

According to Minister Dao Ngoc Dung, the regulation of a reference level to replace the basic salary is essentially not problematic. If necessary, the current basic salary of 1.8 million VND can still be applied. But if the basic salary is abolished, what will replace it?

Regarding the method of calculating pensions for the armed forces, Minister Dao Ngoc Dung said that he acknowledged this opinion and would report it to the competent authorities.

Pensions will be at the highest possible level as part of the salary reform.

Regarding the issue of pensions, Minister Dao Ngoc Dung said that the Standing Committee of the Government had met and the Ministry proposed that those receiving pensions from July 1st onwards, when the salary reform for officials, civil servants, and public employees takes place, should also be paid at the highest possible rate.

"It is possible that in the last six months of this year and the beginning of 2025, we will balance the fund, with no surplus. We accept that to ensure the rights of retirees," Minister Dao Ngoc Dung affirmed.

Minister Dao Ngoc Dung said that those who have rendered meritorious service and those receiving social welfare benefits will be one level higher than workers and civil servants.

According to the People's Army Newspaper

Source: https://baolaocai.vn/luong-huu-se-ap-dung-muc-cao-nhat-co-the-khi-cai-cach-tien-luong-post384676.html