Circular No. 115/2013/TT-BTC dated August 20, 2013 of the Ministry of Finance on guiding pension insurance and voluntary pension fund

THE MINISTRY OF FINANCE

Circular No. 115/2013/TT-BTC dated August 20, 2013 of the Ministry of Finance on guiding pension insurance and voluntary pension fund

Pursuant to Law on insurance business No. 24/2000/QH10 dated December 09, 2000;

Pursuant to Law on amending and supplementing a number of articles of Law on insurance business No. 61/2010/QH12 dated November 24, 2010;

Pursuant to Government’s Decree No. 45/2007/ND-CP dated March 27, 2007, detailing implementation of a number of Articles of the Law on insurance business;

Pursuant to Government’s Decree No. 118/2008/ND-CP dated November 27, 2008, defining the functions, tasks, powers and organizational structure of the Ministry of Finance;

At the proposal of Director of the insurance management and supervision Department;

The Minister of Finance promulgates the Circular guiding pension insurance and voluntary pension fund,

Chapter 1.

GENERAL PROVISIONS

Article 1. Scope of regulation and subjects of application

1. This Circular guides the implementation of pension insurance and voluntary pension fund as prescribed in Clause 1 Article 1 of the 2010 Law on amending and supplementing a number of articles of Law on insurance business.

2. This Circular applies to life insurers carrying out pension insurance (hereinafter abbreviated to insurers) and relevant individuals and organizations on the territory of the Socialist Republic of Viet Nam.

Article 2. Pension insurance

1. Pension insurance is a product of life insurance which is performed by insurers with the aim to provide an additional income to insured persons upon they passed the working age.

2. Pension insurance includes pension insurance for each individual and pension insurance for group of laborers. Case of pension insurance for a group of laborers (hereinafter referred to as the for-group pension insurance), the insurance buyer will be the employer, laborers will be received all rights and benefits of insurance contract after a defined time according to agreements between parties and stated in insurance contract.  

3. On the basis of insurance premium payment of the insurance buyer, the insured person will begin receiving rights and benefits of pension insurance when reaching age as agreed in insurance contract, but not less than 55 (fifty five) years old for female and 60 (sixty) years old for male.

4. The basic insurance rights and benefits include the periodical pension rights and benefits and rights and benefits of risk insurance.

5. Each insured person according to contract of individual pension insurance or contract of for-group pension insurance will has a separate pension insurance account as prescribed in this Circular.  

Article 3. Voluntary pension fund

1. Voluntary pension fund is formed from insurance premium and is a collection of pension insurance accounts of the insured persons.

2. When carrying out pension insurance, the insurers must set up voluntary pension fund, monitor, split it and make accounting separately revenue, cost, assets and capital source of voluntary pension fund from other policyholders funds and owners funds.

Article 4. Conditions for the insurers carrying out products of pension insurance

When carrying out products of pension insurance, the insurers must meet the following conditions:

1. Equity capital is not less than 1,000 (one thousand) billion VND;

2.Solvency margin is higher than the minimum solvency margin with a minimum difference of 300 (three hundred) billion VND;

3. To set up voluntary pension fund as prescribed in section 2 Chapter II of this Circular;

4. Information technology system for monitoring and managing in details each transaction of pension insurance accounts;

5. There are 05 (five) officers minimally in charge of managing voluntary pension fund with at least 05 (five) experience years on managing insurance pension funds or policyholders funds;

6. Agents selling products of pension insurance meet conditions specified in Article 25 of this Circular;

7. Products of pension insurance have been approved by the Ministry of Finance.

Chapter 2.

SPECIFIC PROVISIONS

SECTION 1. PROVISIONS ON PRODUCTS OF PENSION INSURANCE

Article 5. The basic insurance rights and benefits of pension insurance product

1. The insurers may take the initiative in designing products of pension insurance but must include periodical pension rights and benefits, and rights and benefits of risk insurance, as prescribed in Clause 2 and Clause 3 of this Article.

2. For periodical pension rights and benefits, the insurers must ensure:

a) Pension rights and benefits will be paid periodically until the insured person die or not less than 15 (fifteen) years, depending on agreements in insurance contract;

b) The insurers and the insurance buyer may agree about the level to enjoy pension rights and benefits of each period and number of periods for receiving pension rights and benefits;

c) Calculation of accumulated interests from pension rights and benefits not yet been paid to the insurance buyer, but these interests are not less than the minimum commitment investment interest rate as agreed in insurance contract.

3. For rights and benefits of risk insurance, the insurers must provide during time limit of insurance premium payment and may continue provision of these rights and benefits during time of receiving pension rights and benefits, depending on agreements in insurance contract. Rights and benefits of risk insurance include minimally the following rights and benefits:

a) The burying subsidy:

When receiving request for paying rights and benefits of insurance due to death, irrespective of the death within or outside the insured scope, the insurers must pay immediately the burying subsidy to the beneficiary as agreed in insurance contract.

b) Rights and benefits of insurance for death or permanent and entire injury:

- When an insured person died or injured permanently and entirely under the insured scope and in the prescribed duration, the insurers must pay to the beneficiary an insurance amount as agreed in insurance contract.

- The insurance buyer may select the insurance amount upon entering into the insurance contract and may adjust that insurance amount during the effective duration of insurance contract as agreed in insurance contract.

Article 6. Auxiliary insurance rights and benefits

1. Apart from the basic insurance rights and benefits, depending on agreements in insurance contracts, the insurers may provide additionally the following auxiliary insurance rights and benefits:

a) Rights and benefits involving adjustment to the enjoying level of periodical pension rights and benefits;

b) Rights and benefits regarding unemployment insurance;

c) Rights and benefits regarding medical care;

d) Rights and benefits regarding support upon being hospitalized;

dd) Rights and benefits regarding insurance for dependent persons;

e) Rights and benefits regarding insurance for dangerous diseases;

g) Other auxiliary rights and benefits as agreements in insurance contract;

2. Methods of paying insurance premium for auxiliary insurance rights and benefits will be agreed by parties when entering into insurance contract. The insurers are not allowed to deduct premium of auxiliary insurance rights and benefits from the account value of pension insurance.

Article 7. Insurance premium

1. Insurance premium is a contribution into voluntary pension fund on a periodical basis or lump-sum basis according to agreement in contract of pension insurance.

2. Insurance premium paid additionally is contribution apart from the periodical or lump-sum insurance premium already agreed in insurance contract, so as to invest in voluntary pension fund.

Article 8. Charges

1. The insurers may deduct the following charges:

a) The charges which are deducted from the collected insurance premiums, before allocated into accounts of pension insurance:

Initial charge which is charge used for paying cost of issuing insurance contracts, cost for insurance appraisal, cost for medical examination, cost for agents’ commission and other cost.

b) Charges which are deducted from accounts of pension insurance:

- The risk insurance premium which is the premium for rights and benefits of risk insurance as committed in insurance contract.

The insurers may take the initiative in selecting table of mortality rate and table of entire and permanent injury rate for calculating the risk insurance premium. In all cases, the applicable mortality rate will not higher than regulation in the mortality rate table CSO 1980 and the entire and permanent injury rate will not higher than 10% of the mortality rate table CSO 1980 specified in Annex I promulgated together with this Circular;

- Charge for managing insurance contract is charge to offset costs relating to preserving insurance contract and provision of information involving insurance contract for the insurance buyer;

- Charge for managing fund which is used for paying for activities of managing voluntary pension fund and its maximal level will not exceed 2% of value of investment assets of fund in year;

- Charge for transfer of pension insurance account is charge which the insurance buyer must pay to the insurer managing pension insurance accounts upon transferring pension insurance accounts to new insurer.

A maximal charge for transfer of pension insurance account will not exceed 5% of value of transferred accounts for insurance contracts in the first year, not exceed 4% in the second year, not exceed 3% in the third year, not exceed 2% in the fourth year,  and not exceed 1% from the fifth year onwards;

- Other charges (if any) must be approved in writing by the Ministry of Finance.

2. The insurers must calculate exactly, fairly and reasonably the mentioned-above charges, in conformity with products approved by the Ministry of Finance and notify the insurance buyer upon entering into contracts of pension insurance.

3. The pension insurance contracts must clearly specify the maximum premiums applicable to the insurance buyer. The insurers must clearly and fully publicize types of charges, method to determine and rate of charges applicable to the insurance buyer in documents introducing products and the documents illustrating for sale.

Article 9. Ratifying implementation of pension insurance product

1. The insurers must be accepted in writing by the Ministry of Finance before carrying out pension insurance product.

2. A dossier of application for carrying out pension insurance product includes:

a) Request for ratifying pension insurance product made according to form in Annex II promulgated together with this Circular;

b) Plan and explanation of plan on carrying out pension insurance product, including the following contents:

- Main content summary of pension insurance product anticipated to carry out, including information of objective market of product, insurance rights and benefits anticipated to provide;

- Geographical areas anticipated to carry out pension insurance product;

- Explanation of technical material facilities ensuring for implementation of pension insurance product, including: The information technology system; accounting system; processes of recruiting, selecting, training, managing agents for distribution of products; content and programs of training the pension insurance agents; list and dossiers of officers training the pension insurance agents;     

- Base of allocation of insurance premiums;

- The handling plan of the insurers for voluntary pension fund in cases: When clients request for payment insurance money upon happening insurance event; clients request for transfer of pension insurance accounts; the maturity day of insurance contracts and other cases as prescribed in rules, terms;

c) Commitments in writing enclosed with explanation in details about the insurer’s satisfaction of conditions specified in Article 4 of this Circular and diplomas proving qualification, capability, professional experiences of officers managing voluntary pension fund;

d) Rules, terms and charge table of pension insurance product anticipated to carry out;

dd) Technical facilities of pension insurance product anticipated to carry out, in which clearly state the formula, method, explanation of technical base for calculation of charges and reserve of professional operation;

e) Documents for introduction of products, documents illustrating for sale, form of insurance request, form of insurance certificate, and other types of papers on which clients must declare and sign, upon buying insurance.

3. Within 30 (thirty) days after receiving a full dossier as prescribed in Clause 2 of this Article, the Ministry of Finance shall have a written acceptance or refusal.  In case of refusal, the Ministry of Finance shall clearly explain the reason thereof.

4. In case where an insurer wishes to carry out new pension insurance product other than pension insurance product already approved, dossier of application for ratifying pension insurance product will exclude documents specified in Points b and c Clause 2 of this Article, unless these documents have changes in comparison with documents at time when pension insurance product are ratified by the Ministry of Finance in the previous time.

SECTION 2. SETTING UP AND MANAGING VOLUNTARY PENSION FUND

Article 10. Setting up and managing voluntary pension fund

1. When setting up voluntary pension fund, the insurers must use owners fund to contribute in voluntary pension fund not less than 200 (two hundred) billion VND and must maintain at least 200 (two hundred) billion VND in this fund.

2. Voluntary pension fund is managed and used for investment in conformity with provisions on financial regime applicable to the life insurers and provisions in this Circular.

3. Assets of voluntary pension fund include assets formed from insurance premium source, contributions of the life insurer specified in Clause 1 of this Article and assets formed from investment profits of above sources.

The insurers are not allowed using assets of voluntary pension fund so as to pay fines due to violations of law, debts and transactions not related to voluntary pension fund.

4. All assets formed from insurance premium source of voluntary pension fund belong to the insured persons.

5. The representatives before law, Actuaries and Chief accountants of the insurers are responsible for accuracy of fund separation, determination of principles for allocating the arising transactions regarding assets, capital sources, revenues and costs related to each fund.  

Article 11. Provisions on asset investment of voluntary pension fund

1. The asset investment of voluntary pension fund must comply with provisions of law; the insurers take self-responsibility for investment, assurance of safety, effectiveness, dispersal of risks, liquidity; value of investment assets are corresponded with liability and characteristics of risks of pension insurance product.

2. Assets of voluntary pension fund are not used for direct investment in real estate, gold, silver, precious metal, gemstones; not used for investment in shares of securities companies, financial companies, and Finance-leasing companies.

3. List and limitation of asset investment of voluntary pension fund are specified as follows:

a) Making a deposit at credit institutions which is not restrained, but not exceed 20% of total investment asset value of voluntary pension fund in a credit institution.

b) Buying Government’s bonds not restrained, but not less than 40% of total investment asset value of voluntary pension fund;

c) Corporate bonds with guarantee of Government, bonds of local authorities, but not more than 25% of total investment asset value of voluntary pension fund;

d) Buying stocks, corporate bonds with non-guarantee, contributing capital into other enterprises, maximally not exceed 20% of total investment asset value of voluntary pension fund.

The investment into stocks already been issued of an enterprise, corporate bonds not exceed 5% of volume of each issue time, and not exceed 5% of total investment asset value of voluntary pension fund.

4. Depending on change of financial market and investment operation, the Ministry of Finance may adjust the list and investment limitations specified in this Article.

Article 12. The company managing fund

1. The insurers carrying out pension insurance product may take the initiative in managing, investing assets of voluntary pension fund or entrust for a company to manage the asset investment fund of voluntary pension fund or hire a company of fund management to manage the investment list of assets of voluntary pension fund in accordance with limitations, objectives, strategies on investment of voluntary pension fund and provisions of current law.

2. When participating in receiving entrustment or managing investment portfolio of assets of voluntary pension fund, a company of fund management must have at least 03 (three) officers with at least 03 (three) experience years on managing pension fund or policyholders funds or experiences on managing investment portfolio with average investment time limit of over 05 (five) years. These officers must possess certificate of practicing fund management issued by the State Securities Commission or be member of association of financial analyst (CFA) or graduated from university, master or doctorate specialized in finance or investment.

3. Companies of fund management must open separate account to manage separately assets invested by voluntary pension fund of the insurers from other funds of the insurers and other clients. Companies of fund management are not allowed using assets of voluntary pension fund so as to conduct any transaction or any purpose other than contents specified in contract of entrustment or management of investment portfolio of the insurers.

4. Companies of fund management must be responsible for any error or the loss from entrustment or management of investment portfolio for assets of voluntary pension fund.

SECTION 3. PENSION INSURANCE ACCOUNT

Article 13. Pension insurance account

1. Pension insurance account is a collection of the insurance premiums which have been submitted after deducting the initial charges; the insurer shall open, monitor and manage separately this account for each the insured person.   

2. The insurers must commit about the minimum investment interest rate of pension insurance account in insurance contracts. At the end of every financial year, the insurers shall announce the investment interest rate and value of account accumulated till that time. The insurers are responsible for using assets of owners fund to offset for each pension insurance account with deficit part compared to the committed interest.

3. The insured persons are not allowed withdrawing ahead of schedule for pension insurance account when it has not yet reached a defined age under agreements in insurance contracts, unless case specified in article 14 of this Circular.

Article 14. Withdrawal in advance of pension insurance account

An insured person is entitled to request the insurer for withdrawal in advance of a part or whole of value of pension insurance account in the following cases:

1. The insured person isreduced working capacity at 61% or more as prescribed by current law;

2. The insured person suffers a dangerous disease as prescribed by law;

Article 15. Transfer of pension insurance account

1. When an insured person ends labor contract or is lost employment and no longer member of for-group pension insurance contract, he/she has the following rights:  

a) Transfer of value of pension insurance account from contract of for-group pension insurance to contract of individual pension insurance with corresponding value at a same insurer, or

b) Transfer his/her pension insurance account to contract of for-group pension insurance of a new enterprise. The new contract of for-group pension insurance may have same insurer or different insurer; it will depend on new enterprise.

2. For case of transfer of pension insurance account in a same insurer, based on document certifying payment of premiums by the insurance buyer and document requesting for transfer of account made by the insured person, the insurer shall transfer account at the request of the insured. The insurers are not allowed collecting charge for transfer of pension insurance account.

3. For case of transferring a contract of for-group pension insurance at a new insurer, within 05 (five) working days, after receiving requirements on transfer of pension insurance account,  evidences to prove that the insured fails to continue participation in contract of for-group pension insurance at old enterprise and become member of new contract of for-group pension insurance, the insurer must transfer all value of pension insurance account accumulated till time of receiving request for transferring account to the insurer receiving transfer, after deducting charge for account transfer (if any).

4. The value of pension insurance account transferred will be accumulated under agreements at new contract of for-group pension insurance.

5. The insurer receiving transfer is not allowed calculating the initial charge for value of pension insurance account transferred.

Article 16. Provisions on temporarily closing the pension insurance account

1. The insurance buyer and the insurer may agree on temporary closure of pension insurance accounts in case of being not able to pay premiums.

2. During temporarily closing the pension insurance account, the insurers are not allowed calculating any charge for the insurance buyer. Value of pension insurance account will be accumulated according to the invest rate announced annually by the insurer in accordance with agreements in insurance contracts. The insurers will have no obligation to pay insurance rights and benefits during this time, except for case of paying periodical pension rights and benefits when the insured person reaches a defined age or pay all value of pension insurance account accumulated till time when the insured person dies or suffers permanent and entire injury.

3. The insurance buyer may request the insurers to recover pension insurance account and continue submission of insurance premium.

SECTION 4. LIABILITY IN INFORMATION DISCLOSURE OF THE INSURERS

Article 17. Information of pension insurance

1. The insurers are responsible for announcing exactly, fully and timely to the insurance buyer about information related to the signed pension insurance contract. Information provided for the insurance buyer must be consistent with pension insurance product having been approved by the Ministry of Finance.  

2. The insurers must establish a division of customer care, specialized in answer questions related to contract of pension insurance.

3. After the Ministry of Finance approves products of pension insurance, the insurers are responsible for building a website for pension insurance:

a) To guide the insurance buyer in self-setting up his/her retirement-on-pension plan;

b) The insurance buyer may self-check information of pension insurance contract and advisory information of agents;

c) The insured persons may check value of individual pension insurance account at each time;

d) Rights and benefit to illustrate for pension insurance product must clearly discriminate between the ensured rights and benefits with the assumed those;

dd) To publicize and update all rules, terms which have been ratified by the Ministry of Finance, documents introducing products, documents illustrating for the sale, the investment result of voluntary pension fund within 05 (five) latest consecutive years.

4. The insurance buyer has right to request the insurers for full provision of information and explanation about insurance conditions and terms so as to realize concerned risks upon signing contract of pension insurance.

5. The insurers shall report to the Ministry of Finance the operational results of voluntary pension fund annually according to form in Annex III promulgated together with this Circular.

Article 18. Pension insurance contract

Pension insurance contracts must be consistent with provisions of law and contain full the following information:

1. Insurance premiums which are paid/contributed by the insurance buyer and the insured persons;

2. Duration of pension insurance contract includes time limit for payment of charges, accumulation of insurance premiums and duration to receive the basis insurance rights and benefits;

3. Liabilities of relevant parties in case of participating in the for-group pension insurance;

4. Selections and rights and benefits of the insured persons in case of participating in the for-group pension insurance;

5. Percentages, specific amounts, maximum levels and methods to calculate charges related to pension insurance contract;

6. Rights and obligations of parties in accordance with law;

7. Enclosed table illustrating for retirement rights and benefits in insurance contract;

8. Provision on transfer of pension insurance account as prescribed in Article 15 of this Circular.  

Article 19. Documents for introducing products

1. Documents for introducing products must meet provisions of law and have minimally the following information:

a) Investment policy, objective and asset investment structure of voluntary pension fund;

b) The rate and the maximum level of initial charges, risk insurance premiums, charge for contract management, charge for voluntary pension fund management, charge for transfer of pension insurance account and other charges;

c) The minimum investment interest rate committed with the insurance buyer for part of insurance premium allocated in pension insurance account;

d) Basis and periodically defining the value of pension insurance account;

dd) Providing clear information for the insurance buyer to know that the entering into a contract of pension insurance is a long-term commitment and the withdrawal in advance of pension insurance account is not allowed except for case specified in Article 14 of this Circular.

2. Information in documents for introducing products must be exact, objective, adequate, truthful and consistent with pension insurance product already been ratified by the Ministry of Finance.  

Article 20. Documents illustrating for the sale

Documents illustrating for the sale must meet provisions of law and the following provisions:

1. Documents illustrating for the sale of pension insurance product must be provided to the insurance buyer before entering into an insurance contract and include minimum information according to Annex IV promulgated together with this Circular; 

2. Clearly illustrating for the insurance buyer about rights and benefits which a customer may receive upon entering into an insurance contract, including rights and benefits of risk insurance and periodical pension rights and benefits;  

3. Charges and maximum limitations which the insurance buyer must pay, must be clearly stated on the basis of separation between the insurance premium for rights and benefits of risk insurance and other charges;

4. In case where pension insurance contract have auxiliary insurance rights and benefits, the insurers must make clear explanation in documents illustrating for sale about those auxiliary rights and benefits and impacts to the insurance buyer and the insured persons;

5. Documents illustrating for the sale must be presented clearly and easily to understand.

Article 21. Notice about status of pension insurance contract

1. Notice about pension insurance account:

Within 90 (ninety) days after the end day of financial year or contractual year, the insurers shall notify in writing or email to the insured persons about status of pension insurance contract according to form in Annex V promulgated together with this Circular. 

2. Notice about the operational result of voluntary pension fund:

Within 90 (ninety) days after the end day of financial year, the insurers must notify in writing to the insurance buyer and the insured persons about the following information:

a) Summary information about operation of voluntary pension fund made according to form in Annex VI promulgated together with this Circular;  

b) The operational situation of voluntary pension fund within 05 (five) latest years or actual existing duration of fund if the operational duration of fund has not yet been full 05 (five) years;

d) Details of investment rights and benefits which have been divided and anticipated to allocate into pension insurance account in the report year;

dd) Certifying document of an independent audit company about information mentioned above.

Article 22. The used language  

Language used in documents, information related to pension insurance product is Vietnamese. For documents of introducing products, documents illustrating for sale, the used font is Time New Roman, minimum size is 13 (thirteen) or other fonts with a similar size and must be consistent with provisions in this Circular.

SECTION 5. SOLVENCY, PROFESSIONAL RESERVES 

Article 23. Solvency

1. The insurers must always keep solvency as prescribed by law.

2. The minimum solvency margin of the insurer is equal to total 4% of insurance professional reserve and 0.3% of risk insurance amount.

3. The solvency margin of the insurer must be always higher 300 (three hundred) billion VND in comparison with the minimum solvency margin.

Article 24. Appropriation of reserve

1. The insurers must make appropriation of reserve for professional operations as follows:

a) Reserve for insurance risks: Being a bigger number of difference between the reserve level calculated under method of charges not yet been enjoyed and the reserve calculated under method of cash flows so as to meet all costs in future during time limit of contract;

b) Reserve of compensation: Being deducted under method of each dossier with the appropriation level calculated on the basis of statistics of payable insurance amounts for each dossier requested for compensation by the insurers but not yet been solved until the end of financial year;

c) Professional reserve for pension insurance account: Being total value of pension insurance account at time of appropriation;

d) Reserve for interest rate of minimum investment commitments: This reserve is used for ensuring the minimum commitment interest rate of enterprises with customers as agreements in pension insurance contract.

2. Actuary of the insurer shall define methods, basis and figures of professional reserves so as to always ensure commitments with the insurance buyer in principles and calculation methods which are recognized widely under international common practices.

SECTION 6. INSURANCE AGENTS, INSURANCE COMMISSIONS AND INSURANCE DISTRIBUTION

Article 25. Conditions for insurance agents  

1. In order to carry out pension insurance product, the insurers shall only use insurance agents satisfying fully the following conditions:

a) Having certificate of insurance agent issued by training facilities approved by the Ministry of Finance;

b) Not violating rule on agent occupational ethic of the insurers during practicing as agent;

c) Having at least 06 (six) consecutive experience months of life-insurance agent operation or 06 (six) consecutive working months in finance, banking, insurance.

2. The insurers must be responsible for damages or losses causing by their agents’ operation under agreements in contract of insurance agent.

Article 26. Insurance commission

1. Insurance commission for pension insurance product will be 3% of total insurance premium maximally.

2. An insurer is not allowed paying insurance commission for case where the insurance buyer ends the current life-insurance contract and participates in new pension insurance contract at the insurer.

3. The insurers are not allowed paying for insurance agent with any amount other than insurance commission and cost for agent management. Cost for agent management includes cost for initial training and examination for issuing certificate of agent, cost for improving knowledge to agents, cost for recruiting the agents, cost for agent reward and cost for agent support.

4. For the insurance agents recruited from other insurer, the insurer is only allowed paying insurance commission and cost for agent management similar as its current agents. Other cost (if any) must be taken from post-tax profit of owner s fund.

Article 27. Professional guidance

The insurers carrying out pension insurance product must promulgate professional guidance handbook for pension insurance product, monitor, manage implementation of this handbook, including or attaching with the following documents:

1. The occupational ethic rules in distribution of pension insurance product;

2. Statistics of quantity and status of life insurance contracts already signed with the insurance buyer before signing contract of pension insurance;

3. Documents proving that customers have read, been advised and understood about pension insurance product;

4. Process and requirement on cross checking the advisory result of the insurers in respect to contracts of pension insurance;

5. Professional process related to distribution of pension insurance product, assignment of tasks, liabilities and coordination among divisions, departments, bodies in the insurers during distributing pension insurance product;

6. Internal examination and control in respect to implementation of pension insurance product in accordance with law;

7. Provisions on liabilities in raising awareness for customers about pension insurance product to ensure that customers have to realize about contribution, accumulation of pension insurance account, terms, charges of all kinds, conditions, and articles, clauses of insurance contract.

Article 28. Distribution of pension insurance product

Organizations and individuals distributing pension insurance product shall:

1. Comply with provisions of law for insurance operation, contracts signed with the insurers and occupational professional rules promulgated by the insurers;

2. Advise properly with the guided process and other processes promulgated by the insurers;

3. Ensure to have documents proving that customers have been advised fully, understood and been explained clearly about rights and benefits of products, realized characteristics of products, selected before signing on dossier of requesting for insurance;

4. Report to the insurers about result of advisory for customers in accordance with guidance on the professional operations. This report is a part in dossier of requesting for insurance.

Chapter 3.

ORGANIZATION OF IMPLEMENTATION

Article 29. Supervision and handling of violations

1. The insurers, insurance agents, relevant organizations and individuals shall be supervised by the Ministry of Finance during implementation of pension insurance product in accordance with law.

2. The insurers are not allowed introducing, offering life-insurance products not in pension insurance professional operations as prescribed in this Circular under a commercial name as pension insurance or other names misleading for customers that these products provide an additional income for the insured person upon they pass the working age.

3. The insurers, insurance agents, relevant organizations and individuals shall be handled as prescribed by law in case of violation.

Article 30. Effect

1. This Circular takes effect from October 15, 2013.

2. In the course of implementation, any arising problems should be reported timely to the Ministry of Finance for consideration and settlement.

FOR THE MINISTER OF FINANCE

DEPUTY MINISTER

Tran Xuan Ha