Agree on proposal for social pension benefits for people without pension from 75 years old

The Government has just submitted a report to the National Assembly on the Draft Law on Social Insurance (amended). Notably, reducing the age of receiving social pension benefits from 80 years old to 75 years old will help expand the beneficiaries of social pension benefits by about 800 thousand to 1 million elderly people receiving social pension benefits and health insurance.

Compared to the current Law on Social Insurance, the draft Law on Social Insurance (amended) has some changes. In particular, the draft Law on Social Insurance (amended) proposes to add social pension benefits to form a multi-layered social insurance system.

Pay pensions regularly to beneficiaries in accordance with regulations.

Stating the political basis for implementing this content, the Government's Submission stated that Resolution No. 28-NQ/TW determined: Social pension benefits provided by the State Budget (NSNN) are a subsidy for the elderly without pensions or monthly social insurance; There are policies to mobilize additional social resources so that these subjects have higher benefits; gradually adjust the age of receiving social pension benefits in accordance with the budget's capacity.

On a practical basis, the Government 's Report said that by the end of 2022, Vietnam will have about 14.4 million people past retirement age (55 years old and above for women; 60 years old and above for men).

The total number of people receiving pensions, monthly social insurance benefits, and social retirement benefits is more than 5.1 million people, accounting for about 35% of the total number of people after retirement age. Vietnam has determined that by 2030, it will strive for about 60% of people after retirement age to receive pensions, monthly social insurance benefits, and social retirement benefits.

Therefore, the draft Law on Social Insurance (amended) supplements Chapter III on social pension benefits (from Article 27 to Article 31). It stipulates: Vietnamese citizens aged 75 and over who do not have pensions or other monthly social insurance benefits will receive social pension benefits guaranteed by the State budget. The monthly social pension benefit level is regulated by the Government in accordance with the socio-economic development conditions and the capacity of the State budget in each period.

The draft Law also assigns the Government to report to the National Assembly to decide on gradually reducing the age of receiving social pension benefits in accordance with the capacity of the State budget in each period.

Reducing the age of receiving social pension benefits from 80 to 75 will help expand the beneficiaries of social pension benefits by about 800,000 to 1 million elderly people receiving social pension benefits and health insurance.

The Government's proposal clearly states that when employees reach retirement age and have paid social insurance (including compulsory and voluntary) but are not yet eligible for pension (less than 15 years of payment) and are not yet old enough to receive social pension benefits (not yet 75 years old), they can choose to receive monthly benefits for the period before reaching the age of receiving social pension benefits, depending on the payment period, salary, and monthly income of the employee for social insurance; at the same time, during the period of receiving monthly benefits, they are entitled to health insurance (HI) guaranteed by the State budget.

Thus, this regulation helps increase the number of beneficiaries of monthly allowances without the state budget increasing much (the state budget only supports health insurance, while the monthly allowance is guaranteed by the social insurance fund from the time the employee pays social insurance).

According to calculations, employees have a 5-year social insurance payment period with the current average monthly salary. If employees do not receive a one-time social insurance payment but choose to receive a monthly allowance, they can receive a monthly allowance (with a minimum level equal to the social pension allowance) right from retirement age instead of having to wait until age 75.

According to Tin Tuc Newspaper

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