Deducting pension rate when retiring early: "Going easy" on people with high social insurance contributions!

Early retirement deduction rate

Discussing the draft revised Law on Social Insurance, delegate Chu Thi Hong Thai ( Lang Son ) said that through contact with voters and surveys to collect opinions on law making, it was shown that a part of workers wanted to reduce the retirement age, especially in the informal sector.

"However, the report as well as experts' opinions say that this is difficult to do. If the number of people receiving early retirement benefits is large, there will be a risk of the social insurance fund going bankrupt," said the delegate.

Trừ tỷ lệ lương hưu khi nghỉ trước tuổi: Nhẹ tay với người đóng BHXH cao! - 1 — Delegate Chu Thi Hong Thai (Photo: National Assembly ).

To harmonize the interests of workers, delegates recommended considering studying regulations that, for workers in the private sector and informal workers with a long period of social insurance payment (women from 30 years, men 35 years), if they retire before the age, each year 1% of their pension rate will be deducted instead of 2% as per current regulations.

In addition, delegates suggested continuing to research and add specific occupations that can retire earlier than the prescribed age.

Proposal to increase retirement benefits

Also giving comments related to the one-time pension upon retirement, delegate Nguyen Hoang Bao Tran ( Binh Duong ) was concerned when the draft revised law stipulates that the one-time pension is calculated based on the number of years of insurance contributions higher than the number of years corresponding to the pension rate of 75%, each additional year of contribution is calculated as 0.5 months of average social insurance salary.

Meanwhile, the one-time social insurance benefit is calculated by 1.5 months of average social insurance salary for the years before 2014 and 2 months of average insurance premium for the months from 2014 onwards.

The delegate cited the reality in Binh Duong, the number of people receiving pensions at a rate of 75% is very small, mainly people working stably in state agencies.

Trừ tỷ lệ lương hưu khi nghỉ trước tuổi: Nhẹ tay với người đóng BHXH cao! - 2 — Delegate Nguyen Hoang Bao Tran (Photo: National Assembly).

Therefore, to encourage workers to stick with the social insurance system for a long time and reduce the situation of workers withdrawing insurance at one time, delegates proposed that the National Assembly and the Government study and consider raising the subsidy level for those who pay social insurance exceeding the maximum limit by 2 months of average insurance salary for years of higher social insurance payment.

Also giving her opinion on this issue, delegate Nguyen Thi Thu Nguyet (Dak Lak) also compared the level of benefits between those who receive a one-time subsidy for the period of social insurance contributions exceeding the maximum limit and those who receive a one-time social insurance benefit. Accordingly, those who contribute beyond the limit are at a much greater disadvantage than those who withdraw insurance.

Meanwhile, the general policy is to encourage workers to stick with the social insurance system for a long time, minimizing the situation of workers withdrawing social insurance at one time, especially in the current context of Vietnam's rapidly aging population.

Therefore, delegate Nguyen Thi Thu Nguyet proposed to study increasing the one-time subsidy for employees who pay more than the maximum limit from 0.5 months of average salary to 1 month of salary for each additional year of payment.

Source