700,000 more people to receive social pension benefits after lowering age requirements

In the appraisal dossier of the revised Law on Social Insurance recently announced by the Ministry of Justice, the Ministry of Labor, War Invalids and Social Affairs proposed reducing the age of receiving social pension benefits from 75 years old and up, instead of 80 years old and up as in the previous draft.

Lowering the age for receiving social pension benefits from 80 years old to 75 years old helps social security policies cover more widely. — Lowering the age of receiving social pension benefits from 80 to 75 helps social security policies cover more widely.

In the draft, the Ministry of Labor, War Invalids and Social Affairs (MOLISA) proposed to supplement social pension benefits to form a multi-layered social insurance system. In addition, the Ministry proposed to gradually reduce the age of receiving social pension benefits from 75 years old and above, without pension or other monthly social insurance benefits, to receive social pension benefits guaranteed by the state budget.

Accordingly, in the draft Law on Social Insurance (amended), the Ministry of Labor, Invalids and Social Affairs added a chapter on social pension benefits, in which it proposed that the conditions for receiving social pension benefits are people aged 75 or older; without pensions or other monthly social insurance benefits according to Government regulations.

The beneficiaries of the social pension allowance are 500,000 VND/person/month and are entitled to health insurance according to the provisions of the law on health insurance.

When a person receiving social pension benefits dies, the person in charge of the funeral will receive a one-time funeral benefit of 10,000,000 VND.

The Ministry of Labor, Invalids and Social Affairs said that this proposal is a step to institutionalize the policy of "gradually adjusting the age of receiving social pension benefits" of Resolution No. 28/TW, aiming to achieve the goal of about 60% of people after retirement age receiving monthly pensions, social insurance and social pension benefits by 2030. At the same time, the Government is assigned to report to the National Assembly to decide on gradually adjusting the age of receiving social pension benefits in accordance with the capacity of the state budget in each period.

When reaching retirement age, employees who have paid social insurance (including both compulsory and voluntary) but are not yet eligible for pension (less than 15 years of payment) and are not yet old enough to receive social pension benefits (not yet 75 years old) can choose to receive monthly benefits (at least equal to the social pension benefit level) for the period before reaching the age of receiving social pension benefits, depending on the payment period, salary, and monthly income of the employee for social insurance. At the same time, during the period of receiving monthly social benefits, they are entitled to health insurance guaranteed by the state budget.

“This regulation aims to increase the number of beneficiaries of monthly subsidies without increasing the state budget (the state budget only supports health insurance, while monthly subsidies are guaranteed by the social insurance fund from the time the employee pays social insurance” – said the Ministry of Labor, Invalids and Social Affairs.

According to the calculations of the Ministry of Labor, War Invalids and Social Affairs, workers who have paid social insurance for 5 years with the current average monthly salary can receive monthly benefits equal to the social pension benefit from the age of 65 instead of having to wait until the age of 75. The monthly benefit is received 10 years early from the social insurance fund because the worker has paid for 5 years, and the worker also receives health insurance guaranteed by the state budget.

The Ministry of Labor, Invalids and Social Affairs assessed the economic impact of this proposal: For the state budget, the monthly social pension allowance for the elderly aged 75 and over without pensions or other monthly social insurance benefits is proposed to be increased from VND 360,000/person/month to VND 500,000/person/month, which will generate additional funding sources guaranteed by the state budget to pay for this group. The additional funding is estimated at about VND 7.1 trillion/year.

However, for the elderly aged 75 and over who do not have pensions or other monthly social insurance benefits, raising the subsidy level will help them have more economic support to improve their lives.

The Ministry of Labor, Invalids and Social Affairs estimates that there are currently about 1.2 million elderly people aged 80 and over who do not have pensions or other monthly social insurance benefits and are receiving social benefits. When the age for receiving social pension benefits is reduced from 80 to 75, there will be about 700,000 more elderly people receiving social pension benefits.

STRONG

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