Decree No. 134/2015/ND-CP dated December 29, 2015 of the Government detailing a number of articles of the Law on Social Insurance regarding voluntary social insurance

DECREE

Detailing a number of articles of the Law on Social Insurance regarding voluntary social insurance[1]

Pursuant to the December 25, 2001 Law on Organization of the Government;

Pursuant to the November 20, 2014 Law on Social Insurance;

Pursuant to the National Assembly’s Resolution No. 93/2015/QH13 of June 22, 2015, on implementation of the policy on payment of lump-sum social insurance allowance to employees;

At the proposal of the Minister of Labor, War Invalids and Social Affairs,

The Government promulgates the Decree detailing a number of articles of the Law on Social Insurance regarding voluntary social insurance.

Chapter I

GENERAL PROVISIONS

Article 1.Scope of regulation

This Decree details a number of articles of the Law on Social Insurance regarding voluntary social insurance.

Article 2.Subjects of application

1. Voluntary social insurance participants who are Vietnamese citizens aged full 15 years or older and not covered by compulsory social insurance under Clause 4, Article 2 of the Law on Social Insurance.

2. Agencies, organizations and individuals involved in voluntary social insurance.

Chapter II

VOLUNTARY SOCIAL INSURANCE REGIMES

Section 1

RETIREMENT REGIME

Article 3.Monthly pension levels

The monthly pension levels prescribed in Article 74 of the Law on Social Insurance are specified as follows:

1. The monthly pension level must equal the monthly pension enjoyment rate multiplied by the average monthly income on which social insurance premiums are based.

2. The monthly pension enjoyment rate shall be calculated as follows:

a/ For employees who retire from January 1, 2016, to before January 1, 2018, it must be 45%, corresponding to 15 years of social insurance premium payment, which shall then be added with 2%, for men, or 3%, for women, for each additional year of social insurance premium payment, but must not exceed 75%;

b/ For female employees who retire on January 1, 2018, or afterward, it must be 45%, corresponding to 15 years of social insurance premium payment, which shall then be added with 2% for each additional year of social insurance premium payment, but must not exceed 75%;

c/ For male employees who retire on January 1, 2018, or afterward, it must be 45%, corresponding to the number of years of social insurance premium payment listed in the Table below, which shall then be added with 2% for each additional year of social insurance premium payment, but must not exceed 75%:

Article 4.Average monthly income on which social insurance premiums are based

The average monthly income on which social insurance premiums are based as prescribed in Article 79 of the Law on Social Insurance is specified as follows:

1. The average monthly income on which social insurance premiums are based is the average of monthly incomes for which social insurance premiums have been paid in the entire period of premium payment.

2. Monthly incomes for which social insurance premiums have been paid for use as a basis for calculating the average monthly income on which social insurance premiums are based as prescribed in Clause 1 of this Article shall be adjusted as follows:

a/ The adjusted monthly income for which social insurance premiums have been paid in a year must equal the monthly income for which social insurance premiums have been paid in a year multiplied by the rate of adjustment of the monthly income for which social insurance premiums have been paid in that year;

b/ The rate of adjustment of the monthly income for which social insurance premiums have been paid shall be calculated based on the average annual consumer price index announced every year by the General Statistics Office and determined by the following formula:

Of which:

-tis any year in the period of adjustment;

- The rate of adjustment of the monthly income for which social insurance premiums have been paid in yeartshall be rounded to have two numerals after the decimal point and must not be lower than 1 (one).

3. In case a voluntary social insurance participant makes one-off payment of social insurance premiums for the insufficient number of years under Point e, Clause 1, Article 9 of this Decree, the average monthly income on which social insurance premiums are based shall be calculated under Clauses 1 and 2 of this Article, of which the monthly income for which one-off payment of social insurance premiums has been made for the insufficient number of years is subject to the adjustment rate of 1 (one).

4. Annually, the Ministry of Labor, War Invalids and Social Affairs shall, based on Clause 2 of this Article and the average annual consumer price index announced by the General Statistics Office, prescribe the rate of adjustment of the monthly income for which social insurance premiums have been paid for application to voluntary social insurance participants.

Article 5.Retirement regime for persons who previously paid compulsory social insurance premiums

The retirement regime for persons who previously paid compulsory social insurance premiums under Article 71 of the Law on Social Insurance is specified as follows:

1. The period calculated for enjoyment of the retirement regime is the aggregate  period of payment of compulsory social insurance premiums and voluntary social insurance premiums, excluding the period during which lump-sum social insurance allowance has been paid.

2. Conditions for pension enjoyment

Voluntary social insurance participants are entitled to pension in one of the following cases:

a/ Having reached full 60 years old, for men, or full 55 years old, for women, for those who have full 20 or more years of insurance payment for enjoyment of the retirement regime, except the case specified at Point b of this Clause;

b/ For those who have paid compulsory social insurance premiums for full 20 or more years, the condition on retirement age for pension enjoyment must comply with Clause 1, 2 or 4, Article 54, and Article 55, of the Law on Social Insurance;

c/ Full-time or part-time female employees in communes, wards or townships who are covered by compulsory social insurance, fully satisfy the conditions for pension enjoyment specified in Clause 3, Article 54 of the Law on Social Insurance, have their period of social insurance premium payment reserved and continue participating in voluntary social insurance are entitled to pension when they so request.

3. The monthly pension level must equal the monthly pension enjoyment rate multiplied by the average monthly salary and income on which social insurance premiums are based specified in Clause 4 of this Article.

For voluntary social insurance participants who have paid compulsory social insurance premiums for full 20 or more years, except those defined at Point i, Clause 1, Article 2 of the Law on Social Insurance and Point c, Clause 2 of this Article, the monthly pension level must at least equal the basic salary level at the time of pension enjoyment.

4. The average monthly salary and income on which social insurance premiums are based for calculation of pension and lump-sum allowance shall be calculated by the following formula:

Of which:

- The average monthly salary on which compulsory social insurance premiums are based must comply with Articles 62 and 63 of the Law on Social Insurance.

- The total monthly incomes on which voluntary social insurance premiums are based is the total monthly incomes on which voluntary social insurance premiums are based and which have been adjusted under Clauses 2 and 3, Article 4 of this Decree.

5. The lump-sum allowance upon retirement shall be calculated under Article 75 of the Law on Social Insurance, added with half of the average monthly salary and income on which social insurance premiums are based as prescribed in Clause 4 of this Article for each year of social insurance premium payment in excess of the number of years corresponding to the pension enjoyment rate of 75%.

6. The lump-sum social insurance allowance must comply with Article 7 of this Decree. The level of lump-sum social insurance allowance enjoyment shall be calculated based on the average monthly salary and income on which social insurance premiums are based as prescribed in Clause 4 of this Article.

Article 6.Time for pension enjoyment

1. The time for pension enjoyment shall be counted from the month following the month a voluntary social insurance participant becomes fully eligible for pension enjoyment specified in Article 73 of the Law on Social Insurance and Clause 2, Article 5 of this Decree.

2. In case a voluntary social insurance participant makes one-off payment of social insurance premiums for the insufficient number of years under Point e, Clause 1, Article 9 of this Decree in order to be eligible for pension enjoyment, the time for pension enjoyment shall be counted from the month following the month he/she has made full payment.

Article 7.Lump-sum social insurance allowance

1. Voluntary social insurance participants are entitled to lump-sum social insurance allowance under Article 77 of the Law on Social Insurance and the National Assembly’s Resolution No. 93/2015/QH13 of June 22, 2015, on implementation of the policy on payment of lump-sum social insurance allowance to employees.

2. A dossier for enjoyment of lump-sum social insurance allowance must comply with Article 109 of the Law on Social Insurance.

3. The settlement of lump-sum social insurance allowance enjoyment must comply with Clauses 3 and 4, Article 110 of the Law on Social Insurance.

Section 2

SURVIVORSHIP REGIME

Article 8.Survivorship regime for relatives of deceased voluntary social insurance participants who previously paid compulsory social insurance premiums

The survivorship regime for relatives of voluntary social insurance participants who die or are declared dead by the court and previously paid compulsory social insurance premiums as prescribed in Article 71 of the Law on Social Insurance is specified as follows:

1. The period used for calculation of the survivorship regime is the aggregate period of payment of compulsory social insurance premiums and voluntary social insurance premiums, excluding the period of social insurance premium payment during which lump-sum social insurance allowance has been paid.

2. Persons who take charge of the funeral of a deceased voluntary social insurance participant are entitled to a funeral allowance equaling 10 times the basic salary of the month when this participant dies or is declared dead by the court, in one of the following cases:

a/ This participant has paid compulsory social insurance premiums for full 12 or more months;

b/ This participant has a period used for calculation of the survivorship regime of full 60 or more months;

c/ This participant is on monthly labor accident or occupational disease allowance and has ceased working;

d/ This participant is on pension.

3. For voluntary social insurance participants who die or are declared dead by the court and fall in one of the following cases, their relatives defined in Clause 2, Article 67 of the Law on Social Insurance are entitled to monthly survivorship allowance under Article 68 of the Law on Social Insurance:

a/ Having paid compulsory social insurance premiums for full 15 or more years but having not yet received lump-sum social insurance allowance;

b/ Being on monthly labor accident or occupational disease allowance for suffering a working capacity decrease of 61% or more;

c/ Being on pension and having previously paid compulsory social insurance premiums for full 15 or more years.

4. If relatives who are entitled to monthly survivorship allowance under Clause 3 of this Article wish to receive lump-sum survivorship allowance, they are entitled to such allowance under Clause 2 or 3, Article 81 of the Law on Social Insurance, except under-6 children, and children or spouses who suffer a working capacity decrease of 81% or more.

5. For voluntary social insurance participants who die or are declared dead by the court without any relatives defined in Clause 6, Article 3 of the Law on Social Insurance, persons eligible to receive lump-sum survivorship allowance shall be identified in accordance with the law on inheritance.

Chapter III

THE SOCIAL INSURANCE FUND

Article 9.Premium payment methods

The methods of payment of voluntary social insurance premiums prescribed in Clause 2, Article 87 of the Law on Social Insurance are specified as follows:

1. Voluntary social insurance participants may select one of the following methods to make payment to the retirement and survivorship fund:

a/ Payment for every month;

b/ Payment for every 3 months;

c/ Payment for every 6 months;

d/ Payment for every 12 months;

dd/ One-off payment for many subsequent years with each payment for not more than 5 years;

e/ One-off payment for the insufficient number of years, for social insurance participants who satisfy the condition on retirement age for pension enjoyment and whose insufficient period of social insurance premium payment is 10 years (120 months) at most. In this case, they may pay social insurance premiums so that their payment period reaches full 20 years in order to receive pension.

2. Social insurance participants who reach the prescribed retirement age and whose insufficient period of social insurance premium payment is over 10 years may continue paying voluntary social insurance premiums if they so wish, by one of the methods specified at Points a, b, c, d and dd, Clause 1 of this Article until their insufficient period reaches 10 years or less. Then they may make one-off payment of social insurance premiums for the insufficient number of years in order to receive pension under Point e, Clause 1 of this Article.

Article 10.Premium payment levels

The levels of payment of voluntary social insurance premiums prescribed in Clause 1, Article 87 of the Law on Social Insurance and by the methods specified in Clause 1, Article 9 of this Decree are prescribed as follows:

1. The monthly premium payment level must equal 22% of the monthly income selected by voluntary social insurance participants.

The monthly income selected by voluntary social insurance participants must at least equal the poverty line in rural areas as prescribed by the Prime Minister and must not exceed 20 times the basic salary level at the time of payment.

2. The level of premium payment for every 3, 6 or 12 months must equal the monthly premium payment level specified in Clause 1 of this Article multiplied by 3, for payment for every 3 months, by 6, for payment for every 6 months, or by 12, for payment for every 12 months.

3. The level of one-off payment of premiums for many subsequent years prescribed at Point dd, Clause 1, Article 9 of this Decree must equal the total premium payment level of the previous months minus a gross interest calculated at the social insurance fund’s average monthly investment interest rate announced by the Vietnam Social Security in the year preceding the year of payment.

4. The level of one-off payment of premiums for the insufficient number of years prescribed at Point e, Clause 1, Article 9 of this Decree must equal the total premium payment level of the insufficient number of months, applying the gross interest rate, calculated at the social insurance fund’s average monthly investment interest rate announced by the Vietnam Social Security in the year preceding the year of payment.

5. In case voluntary social insurance participants have paid premiums for every 3, 6 or 12 months or for many subsequent years as prescribed in Clause 2 or 3 of this Article and during that period the Prime Minister adjusts the poverty line in rural areas, the paid premium amounts are not required to be adjusted.

6. In case voluntary social insurance participants have paid premiums for every 3, 6 or 12 months or for many subsequent years as prescribed at Point b, c, d or dd, Clause 1, Article 9 of this Decree and during that period they fall in one of the following cases, they will have part of the paid premium amount refunded:

a/ They shift from voluntary social insurance to compulsory social insurance;

b/ They receive a lump-sum social insurance allowance under Article 7 of this Decree;

c/ They die or are declared dead by the court.

The amount to be refunded to voluntary social insurance participants in the case specified at Point a or b of this Clause or to their relatives in the case specified at Point c of this Clause must equal the paid premium amount corresponding to the remaining period of payment by the method mentioned above and is exclusive of the State’s support sum (if any).

Article 11.Change of premium payment method and monthly income on which voluntary social insurance premiums are based

Voluntary social insurance participants may change the premium payment method or monthly income on which voluntary social insurance premiums are based only after having completed the premium payment method they previously selected.

Article 12.Time of premium payment

1. The time of payment of social insurance premiums by the methods specified at Points a, b, c and d, Clause 1, Article 9 of this Decree is specified as follows:

a/ Within a month, for the method of payment for every month;

b/ Within 3 months, for the method of payment for every 3 months;

c/ Within the first 4 months, for the method of payment for every 6 months;

d/ Within the first 7 months, for the method of payment for every 12 months.

2. The time of payment of social insurance premiums in the case of one-off payment for many subsequent years or one-off payment for the insufficient number of years as specified at Point dd or e, Clause 1, Article 9 of this Decree is the time of registration of the premium payment method and monthly income on which premiums are based.

3. Past the time of social insurance premium payment prescribed in Clause 1 of this Article, if voluntary social insurance participants fail to make payment, they shall be regarded as suspending the payment. After suspending the payment of voluntary social insurance premiums, those who wish continue paying them shall re-register with social insurance agencies the premium payment method and monthly income on which social insurance premiums are based. If they wish to make payment for the months they suspend the payment, they shall pay an amount equaling the total premiums of the months they suspend the payment plus a gross interest calculated at the social insurance fund’s average monthly investment interest rate announced by the Vietnam Social Security in the year preceding the year of payment.

Article 13.Procedures for re-registration of premium payment method and monthly income on which voluntary social insurance premiums are based

1. A dossier for re-registration of premium payment method and monthly income on which voluntary social insurance premiums are based must comprise:

a/ The social insurance book;

b/ The declaration form for social insurance participation.

2. Settlement of the re-registration of premium payment method and monthly income on which voluntary social insurance premiums are based

a/ Voluntary social insurance participants shall submit a dossier prescribed in Clause 1 of this Article to the social insurance agency;

b/ The social insurance agency shall process the dossier within a day if it is complete as prescribed. If refusing to process the dossier, it shall give a written reply clearly stating the reason.

Article 14.Support of social insurance premiums for voluntary social insurance participants

1. Levels of and persons eligible for support:

Voluntary social insurance participants are entitled to the State’s support of premiums in percentage (%) of monthly social insurance premiums based on the poverty line in rural areas as prescribed in Clause 1, Article 10 of this Decree, specifically as follows:

a/ 30%, for voluntary social insurance participants being members of poor households;

b/ 25%, for voluntary social insurance participants being members of households living just above the poverty line;

c/ 10%, for other persons.

Agencies, organizations and individuals are encouraged to provide support of social insurance premiums for voluntary social insurance participants.

Based on socio-economic development conditions and state budget capacity in each period, the Government shall consider adjusting levels of support of premiums for voluntary social insurance participants as appropriate.

2. The support duration must depend on the actual period of voluntary social insurance participation of each person but must not exceed 10 years (120 months).

3. Support methods:

a/ Support-eligible voluntary social insurance participants shall pay social insurance premiums within their payment responsibility to social insurance agencies or voluntary social insurance premium collection agents designated by social insurance agencies;

b/ Every 3, 6 or 12 months, social insurance agencies shall make a list summarizing the number of support-eligible persons, premiums collected from these persons and the state budget’s support sum according to the form issued by the Vietnam Social Security after reaching agreement with the Ministry of Finance, and send this list to finance agencies for transferring the support sum to the social insurance fund;

c/ Based on the regulations on local budget management decentralization, the list of voluntary social insurance participants and the state budget’s support sum transferred by social insurance agencies, finance agencies shall transfer such support sum to the social insurance fund every quarter. By December 31 of a year at the latest, finance agencies shall complete the transfer of the support sum to the social insurance fund of that year.

4. The support sum for social insurance premiums for voluntary social insurance participants shall be covered by local budgets according to the current state budget decentralization, or by the central budget for localities meeting budget difficulties.

Article 15.Procedures for enjoyment of support of voluntary social insurance premiums

1. A dossier for support enjoyment by the persons defined at Points a and b, Clause 1, Article 14 of this Decree must comprise:

a/ The declaration form for voluntary social insurance participation, for those who register voluntary social insurance participation for the first time;

b/ The declaration form for changing personal information, for those who have participated in voluntary social insurance.

2. Settlement of enjoyment of support of voluntary social insurance premiums

a/ Voluntary social insurance participants shall submit a dossier prescribed in Clause 1 of this Article to the social insurance agency;

b/ The social insurance agency shall process the dossier within a day if it is complete as prescribed. If refusing to process the dossier, it shall give a written reply clearly stating the reason.

Chapter IV

IMPLEMENTATION PROVISIONS

Article 16.Transitional provisions

1. This Decree’s provisions apply to persons who have participated in voluntary social insurance since before January 1, 2016.

2. For persons currently on monthly pension since before January 1, 2016, previous regulations shall still apply and they will have their pension level adjusted.

3. Voluntary social insurance participants who previously paid compulsory social insurance premiums which are calculated also based on region-based allowance are entitled to lump-sum region-based allowance in accordance with the law on compulsory social insurance, in addition to pension, lump-sum social insurance allowance and survivorship allowance.

4. For voluntary social insurance participants who are eligible for and are enjoying voluntary social insurance regimes since before January 1, 2016, the 2006 Law on Social Insurance shall still apply.

5. For voluntary social insurance participants who have paid premiums for every 3, 6 or 12 months or for many subsequent years, including a period following the time of implementation of the policy on support of social insurance premiums, they shall not be entitled to the support prescribed in Article 14 of this Decree for the period they have paid the premiums.

6. The whole balance as of December 31, 2015, of the voluntary social insurance fund prescribed in the 2006 Law on Social Insurance shall be added to the retirement and survivorship fund in accordance with the 2014 Law on Social Insurance.

Article 17.Effect

1. This Decree takes effect on February 15, 2016.

The provisions of this Decree, except those in Clause 2 of this Article, apply from January 1, 2016.

2. The State’s support of social insurance premiums for voluntary social insurance participants will apply from January 1, 2018. The support shall not be provided for the period of payment of voluntary social insurance premiums prior to January 1, 2018, except the case of one-off payment for the insufficient number of years by the method prescribed at Point e, Clause 1, Article 9 of this Decree.

3. On the effective date of this Decree, the following documents cease to be effective:

a/ The Government’s Decree No. 190/2007/ND-CP of December 28, 2007, guiding the implementation of a number of articles of the Law on Social Insurance regarding voluntary social insurance;

b/ The Government’s Decree No. 134/2008/ND-CP of December 31, 2008, adjusting monthly income for which social insurance premiums have been paid for voluntary social insurance participants.

Article 18.Organization of implementation

1. The Minister of Labor, War Invalids and Social Affairs shall guide the implementation of this Decree.

2. The Minister of Finance shall ensure state budget funds for implementation of the support policy for voluntary social insurance participants in accordance with this Decree.

3. Every year, the Vietnam Social Security shall announce the social insurance fund’s average investment interest rate of the preceding year.

4. Annually, the General Statistics Office under the Ministry of Planning and Investment shall timely notify the average annual consumer price index to the Ministry of Labor, War Invalids and Social Affairs.

5. Social insurance agencies shall check the list of voluntary social insurance participants defined at Points a and b, Clause 1, Article 14 of this Decree against the lists of poor households and households living just above the poverty line provided by local administrations for ascertaining those who are eligible for support.

6. Ministers, heads of ministerial-level agencies, heads of government-attached agencies, and chairpersons of provincial-level People’s Committees shall implement this Decree.-

On behalf of the Government
Prime Minister
NGUYEN TAN DUNG