Proposed new policy for early retirement

KInhtedothi-Early retirees are entitled to a one-time pension for the early retirement period and are entitled to an early retirement policy based on the length of service with compulsory social insurance (SI) contributions and the number of years of early retirement - that is a recent proposal by the Ministry of Home Affairs.

Minister of Home Affairs Pham Thi Thanh Tra has just signed and submitted to the Government a draft Decree on policies and regimes for cadres, civil servants, public employees, and workers (CBCCVC, NLĐ) in the implementation of the organizational arrangement of the political system.

According to the leader of the Ministry of Home Affairs, this policy is applied to leaders, managers, civil servants and public employees; commune-level civil servants and public employees; people working under labor contracts before January 15, 2019 and people working under labor contracts are subject to the same policy as civil servants (except for people working in other public service units).

At the same time, it does not apply to those who have announced their retirement as prescribed before the effective date of the decision of the competent authority on the organizational arrangement. Cadres who do not meet the age requirements for re-election or reappointment to positions and titles according to their term in agencies of the Party, the State, socio-political organizations (CT-XH) and cadres who voluntarily resign in accordance with other decrees of the Government are also not subject to these policies and regimes.

Lump sum pension

Note that the draft proposal, on one-time retirement benefits for early retirement, for those who retire within 12 months from the date of the decision on organizational arrangement of the competent authority, is divided into 2 cases: in case of retirement age under 5 years, they will receive a benefit equal to 1 month of current salary multiplied by the number of months of early retirement compared to the time of retirement.

In case of having 5 to 10 years left until retirement age, the employee will receive a subsidy equal to 0.9 months of current salary multiplied by the number of months of early retirement compared to the term, but not exceeding 60 months.

For those who take leave from the 13th month onwards from the date of the arrangement decision of the competent authority, they will receive 0.5 times the above allowance level.

The Ministry of Home Affairs has just submitted to the Government a draft Decree on policies and regimes for cadres, civil servants, public employees, and workers in the implementation of the organizational arrangement of the political system.

Policy for 5 cases of early retirement

Regarding the early retirement policy, it is divided into 5 cases. In case there are still 2 to 5 years left until retirement age and have enough time to pay compulsory social insurance or more to receive pension, in addition to receiving pension benefits according to regulations, the pension rate will not be deducted due to early retirement. In addition, 5 months of current salary will be subsidized for each year of early retirement; 5 months of current salary will be subsidized for the first 20 years of work with compulsory social insurance. From the 21st year onwards, for each year of work with compulsory social insurance, 0.5 months of current salary will be subsidized.

In case of having more than 5 years to 10 years of retirement age and having enough time to pay compulsory social insurance to receive pension, in addition to receiving pension benefits according to regulations, they will not have their pension rate deducted due to early retirement. At the same time, they will receive a subsidy of 4 months of current salary for each year of early retirement; a subsidy of 5 months of current salary for the first 20 years of work with compulsory social insurance. From the 21st year onwards, for each year of work with compulsory social insurance, they will receive a subsidy of 0.5 months of current salary.

In case of having 2 to 5 years left until retirement age and having enough time to pay compulsory social insurance or more to receive pension according to regulations, including 15 years or more working in arduous, toxic, dangerous or especially arduous, toxic, dangerous occupations or jobs, or 15 years or more working in areas with particularly difficult socio-economic conditions (on the list issued by the Ministry of Labor, Invalids and Social Affairs), including working time in areas with regional allowance coefficient of 0.7 or more before January 1, 2021, in addition to enjoying the pension regime according to regulations, they are also entitled to other regimes.

They are not subject to a deduction in their pension rate due to early retirement; they are subsidized 5 months of their current salary for each year of early retirement; and they are subsidized 5 months of their current salary for the first 20 years of work with compulsory social insurance contributions. From the 21st year onwards, for each year of work with compulsory social insurance contributions, they are subsidized 0.5 months of their current salary.

The Ministry of Home Affairs proposes that people who retire early receive a one-time pension for their early retirement period.

In case of having less than 2 years left until retirement age and having enough time to pay compulsory social insurance to receive pension according to regulations, they will receive pension according to regulations and will not have their pension rate deducted due to early retirement.

In case there are less than 2 years left until retirement age and have enough compulsory social insurance time or more to receive pension according to regulations, including 15 years or more working in heavy, toxic, dangerous or especially heavy, toxic, dangerous occupations or jobs, or 15 years or more working in areas with especially difficult socio-economic conditions, including working time in areas with regional allowance coefficient of 0.7 or more before January 1, 2021, they will receive pension according to regulations and will not have their pension rate deducted due to early retirement.

Civil servants who retire before the above-mentioned age and are eligible for merit rewards under Decree No. 98/2023/ND-CP but still lack the working time holding a leadership position at the time of retirement to be awarded merit rewards, will have their early retirement time calculated plus the time they held a leadership position to be considered for merit rewards or consider forms of rewards appropriate to their achievements.

4 types of regimes for people who quit their jobs

Regarding the policy for cadres whose working time is extended, the draft decree stipulates that cadres who are past the prescribed retirement age but are decided by the Politburo and the Secretariat to extend their working time in Party and State agencies and socio-political organizations, if they retire, will receive a one-time pension equal to 30 months of their current salary and enjoy social insurance benefits according to the law.

Regarding the policy of resignation for cadres and civil servants (including commune-level cadres and civil servants), the draft decree stipulates that people who are 2 years or older and reach retirement age and are not eligible for early retirement policies and regimes, if they resign, will be entitled to 4 types of regimes, including severance allowance.

A person who quits his/her job within 12 months from the date of the decision on organizational reorganization by the competent authority shall receive a benefit equal to 0.8 months of current salary multiplied by the number of months for which severance allowance is calculated. A person who quits his/her job from the 13th month onwards from the date of the decision on organizational reorganization by the competent authority shall receive a benefit equal to 0.4 months of current salary multiplied by the number of months for which severance allowance is calculated.

In addition, they are subsidized 1.5 months of current salary for each year of work with mandatory social insurance payment; have their social insurance payment period reserved or receive one-time social insurance payment according to regulations and are subsidized 3 months of current salary to find a job.

Source: https://kinhtedothi.vn/de-xuat-chinh-sach-moi-cho-nguoi-nghi-huu-truoc-tuoi.html