The proposal to pay social insurance for 15 years to receive pension is the content mentioned in the Submission of the Social Insurance Law Project (amended).
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Proposal to pay social insurance for 15 years to receive pension
Accordingly, the minimum number of years of social insurance contributions required to receive a monthly pension is reduced from 20 years to 15 years to create opportunities for late participants or those who have not participated continuously and have a short period of social insurance contributions to receive a pension (Article 64).
- Resolution 28-NQ/TW determines: Amending the conditions for enjoying retirement benefits in the direction of gradually reducing the minimum number of years of social insurance contributions to enjoy retirement benefits from 20 years to 15 years, towards 10 years with the benefit level calculated appropriately to create conditions for elderly workers with low years of social insurance participation to access and enjoy social insurance benefits.
- Practical basis: According to statistics, in the 7 years of implementing the Social Insurance Law 2014, there are over 476 thousand people receiving one-time social insurance who have participated in social insurance for over 10 years and are aged 40 and above; there are over 53 thousand people who are past retirement age and must receive one-time social insurance because they have not paid enough 20 years of compulsory social insurance; there are over 20 thousand people who, upon reaching retirement age, have not paid enough time and must pay one-time for the remaining time to receive salary. If the minimum time to receive pension is still stipulated as 20 years, these people will hardly have the opportunity to receive pension.
Proposed amendment: Article 64 of the draft Law on Social Insurance (amended) stipulates that employees who reach retirement age and have paid social insurance for 15 years or more are entitled to receive a monthly pension.
Thus, according to this proposal, people who have paid social insurance for 15 years and meet the retirement age requirements can receive a monthly pension.
This regulation aims to create opportunities for late participants (starting participation at 45-47 years old) or those who participate intermittently, leading to not having accumulated enough 20 years of social insurance contributions when reaching retirement age, to receive monthly pensions instead of having to receive social insurance in one lump sum.
With the above regulation, the pension of those who have paid social insurance for 15 years may be lower than those who have paid for a long time if the salary used as the basis for paying compulsory social insurance or the income used as the basis for paying voluntary social insurance is the same.
However, these cases, who were previously not eligible for pensions and received social insurance in one lump sum (if they did not choose to voluntarily pay in one lump sum for the missing period), will now have the opportunity to receive monthly pensions.
Although the pension level may be more modest than those with a long contribution period, with a stable monthly pension, periodically adjusted by the State and during the pension period, the Social Insurance Fund will pay for health insurance, which will contribute to better ensuring the life of workers in their old age.
The regulation reducing the minimum number of years of social insurance contributions to receive monthly pension from 20 years to 15 years only applies to retirement cases under Article 64 and does not apply to retirement cases under Article 65 (early retirement cases before the prescribed age).
For cases of early retirement in Article 65 of the draft Law on Social Insurance (amended), each year of retirement before the prescribed age will have the pension rate reduced by 2%.
Thus, if the above regulation is applied to the retirement cases in Article 65, it will lead to a situation where the pension rate is too low (short contribution period, deducted due to early retirement), the pension level is too low, not very meaningful (male workers with 15 years of social insurance contribution, the pension rate is 33.75%, if they retire 5 years earlier and are deducted 10%, the pension rate will only be 23.75%).
Reduce the minimum social insurance payment period to receive pension from 20 years to 15 years
Reducing the minimum social insurance payment period to receive pension from 20 years to 15 years is a proposal mentioned in Report 170/BC-CP dated May 11, 2022 on the implementation of Resolution 41/2021/QH15 on questioning activities at the 2nd session of the 15th National Assembly.
Specifically, to carry out the tasks assigned by the Government, the Ministry of Labor, War Invalids and Social Affairs has coordinated with ministries and local branches to develop and submit to the Government and the National Assembly a proposal to develop the Law on Social Insurance (amended), which proposes many solutions to limit one-time social insurance benefits, increase attractiveness, and attract employees to participate in social insurance to receive pensions such as:
(i) Reduce the minimum social insurance payment period to receive pension from 20 years to 15 years;
Currently, according to the Social Insurance Law, one of the conditions for receiving pension for employees working under normal conditions is that when retiring, they must have paid social insurance for 20 years or more . This period is considered quite long, leading to many workers not meeting the requirements for the number of years of social insurance contributions to receive pension. Currently, there is only one case of receiving pension when paying social insurance for 15 years. That is the case in Clause 3, Article 54 of the Social Insurance Law: "Female workers who are commune-level cadres, civil servants or part-time workers in communes, wards and towns who participate in social insurance and have paid social insurance for 15 to less than 20 years and are of retirement age as prescribed in Clause 2, Article 169 of the Labor Code shall receive a pension when they retire." |
(ii) Supplement benefits, especially short-term benefits, to increase attractiveness and motivate employees to participate in social insurance;
(iii) Strengthening the connection and support between social insurance policies as well as the flexibility of policies to achieve the goal of attracting and motivating employees to participate in social insurance;
(iv) Strengthening trust and increasing the satisfaction of participants in the social insurance system through promoting administrative reform, applying information technology, simplifying procedures for registration, payment and enjoyment of social insurance, improving the quality of social insurance services in a friendly, public and transparent manner, creating convenience for people and businesses. In addition, to prevent and handle the act of purchasing social insurance books, the proposal to draft the Law on Social Insurance (amended) also proposes to add prohibited acts for the act of buying and selling social insurance books in any form.
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