The information that Social Insurance (SI) will directly pay pensions through accounts in 63 provinces and cities from September 2024 is of interest to many people. So does this mean that from now on, everyone will have to receive pensions through accounts?
Recently, Vietnam Social Security announced that from August 1, 2024, Vietnam Social Security will directly pay monthly social insurance pensions and benefits through personal accounts to beneficiaries at social security agencies in 43 provinces and cities. From September 1, 2024, Vietnam Social Security will transfer money through personal accounts in the remaining 20 provinces.
For more than 10 years, pension and social insurance benefits have been paid through a third party, the Vietnam Post Corporation. Since the end of 2023, Vietnam Social Security has piloted direct pension payments through accounts in 5 provinces and cities, then expanded to 43 provinces and cities, and from September 1, 2024, implemented in the remaining 20 provinces and cities. This means that pension payments through accounts will be directly made by Vietnam Social Security because the beneficiary information is in the data system, while cash payments in provinces and cities will still be made by Vietnam Post.
Mr. Ha Van Lung, Group 10, Doi Can Ward, Ba Dinh District, Hanoi said: After the July period, up to 90% of beneficiaries have switched to receiving pensions through accounts. Thus, instead of receiving pensions at the ward cultural house as before, now people will go to the bank to register to withdraw pensions once they have been transferred to their accounts. Those who have not registered to receive money via bank transfer will go to the post office in Cong Vi Ward, more than 2 km away, to receive their pensions. Due to the long distance, some retired cadres also registered to receive pensions transferred through accounts to withdraw at the bank for convenience.
Meanwhile, lawyer Minh Anh said: Based on the provisions of Clause 3, Article 18 of the Law on Social Insurance 2014 and Article 93, Article 114, Law on Social Insurance 2024 (effective from July 1, 2025), there are 3 forms of receiving pensions for employees participating in social insurance, including: Through the beneficiary's bank account; Directly from the social insurance agency or service organization authorized by the social insurance agency; Through the employer.
Therefore, pension payment via account is not mandatory for pension recipients. From September 1, 2024, in essence, pension payment via bank account will be transferred directly by Vietnam Social Security, not through a third party as before.
According to statistics from Vietnam Social Security, the country currently has nearly 3.4 million people receiving monthly pensions and social insurance benefits. At a recent meeting on Social Security Digital Transformation, according to the newspaper, some provinces have achieved nearly 100% of pensioners receiving pensions through accounts, but some provinces have more than 10% of pensioners receiving pensions through accounts.
It can be seen that receiving pensions or social insurance benefits through accounts is voluntary for beneficiaries and not mandatory. However, for the social insurance industry, increasing the number of beneficiaries receiving pensions through accounts is one of the criteria for evaluating achievements in digital transformation.
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