Joint Circular No. 03/2004/TTLT/BLDTBXH-BTC-BQP guiding the implementation of the adjustment of pension for those who retired before April 1993 in accordance with Government Decree No. 31/2004/NĐ-CP dated January 19, 2004.

JOINT CIRCULAR

Guidelines for implementing adjustments to pensions of those who retired before April 1993 pursuant to Decree No. 31/2004/NĐ-CP dated January 19, 2004 of the Government

Implementing Decree No. 31/2004/NĐ-CP dated January 19, 2004 of the Government on adjusting pension levels for those who retired before April 1993; following consultations with the Ministry of Home Affairs, the Ministry of Public Security, and the Vietnam General Confederation of Labor, the Joint Ministries of Labor, Invalids and Social Affairs, Finance, and Defense issue these guidelines for implementing the adjustment of pension levels as follows:

The subjects subject to the adjustment of pension levels as stipulated in Clause 1 and Clause 2, Article 1 of Decree No. 31/2004/NĐ-CP dated January 19, 2004 of the Government include:

Workers and civil servants who retired under Decree No. 218/CP dated December 27, 1961 of the Government and Decree No. 236/HĐBT dated September 18, 1985 of the Council of Ministers (now the Government);

I. APPLICABLE OBJECTS

Officers, non-commissioned officers, professional military personnel, and individuals receiving salaries according to the pay scale of the armed forces who retired under Decree No. 161/CP dated October 30, 1964 of the Government and Decree No. 236/HĐBT dated September 18, 1985 of the Council of Ministers (now the Government);

1. II. METHOD FOR CALCULATING ADJUSTED PENSIONS

2. Those who retired and fall within the categories specified in Section I above shall be entitled to their pension from January 1, 2004, as follows:

1. For workers and civil servants who have retired.

Those who retired under Decree No. 218/CP dated December 27, 1961 of the Government and Decree No. 236/HĐBT dated September 18, 1985 of the Council of Ministers (now the Government) shall have their pension calculated as follows:

Pension received from 01/01/2004

Current pension received in December 2003

Example 1:For officers, non-commissioned officers, professional military personnel, and individuals receiving salaries according to the pay scale of the armed forces who retired under Decree No. 161/CP dated October 30, 1964 of the Government and Decree No. 236/HĐBT dated September 18, 1985 of the Council of Ministers (now the Government).

a) Those who did not hold leadership positions at the time of retirement shall have their pension calculated as follows:

Example 2:Pension received from 01/01/2004

Current pension received in December 2003

2. Mr. Nguyen Van C, a Lieutenant Colonel serving as an assistant to the corps commander, retired in October 1984 under Decree No. 161/CP, currently receives a pension of 900,000 VND/month in December 2003. From January 1, 2004, his pension will be calculated as follows:

900,000 VND/month x 1.07 = 963,000 VND/month

Example 3:1,600,000 VND/month x 1.07 = 1,712,000 VND/month

b) Those who receive rank allowances and held leadership positions at the time of retirement, as recorded in the Decision on Retirement corresponding to the leadership position allowances listed in Appendix 1 attached to this Circular, in addition to the 7% increase stipulated in Item a, Clause 2, Article 1 of Decree No. 31/2004/NĐ-CP dated January 19, 2004 of the Government, shall also receive an additional 2% increase on their current pension. The pension from January 1, 2004, shall be calculated as follows:

Example 4:x 1.09

Mr. Nguyen Van E, a Colonel serving as a regimental commander, retired in February 1993 under Decree No. 236/HĐBT, currently receives a pension of 1,400,000 VND/month in December 2003. From January 1, 2004, his pension will be calculated as follows:

Example 5:1,400,000 VND/month x 1.09 = 1,526,000 VND/month

Mr. Nguyen Van G, a Senior Colonel serving as Director of the Provincial Police Department, retired in January 1993 under Decree No. 236/HĐBT, currently receives a pension of 1,500,000 VND/month in December 2003. From January 1, 2004, his pension will be calculated as follows:

1,500,000 VND/month x 1.09 = 1,635,000 VND/month

Example 6:The Ministry of Labor, Invalids and Social Affairs, the Ministry of Finance, and the Ministry of Defense are responsible for organizing guidance, inspecting the implementation, and resolving issues within their respective areas of responsibility during the implementation of this Circular.

Provincial People's Committees directly under the Central Government are responsible for directing the Departments of Labor, Invalids and Social Affairs and relevant agencies to inspect, urge, and ensure compliance with the provisions of this Circular.

Example 7:The Vietnam Social Security is responsible for organizing guidance, inspection, urging local social security agencies to implement pension adjustments and timely payment to eligible recipients, and reporting according to Appendix 2 attached to this Circular to the Ministry of Labor, Invalids and Social Affairs and the Ministry of Finance.

Additional funds resulting from pension adjustments as prescribed in this Circular will be allocated by the Ministry of Finance to the Vietnam Social Security from the central budget.

3. The adjusted pension stipulated in this Circular shall take effect from January 1, 2004.

III. IMPLEMENTATION

1. During the implementation, if there are any difficulties, please report them to the Joint Ministries for study and resolution.

2. DEPUTY MINISTER OF FINANCE

3.DEPUTY MINISTER OF LABOR, INVALIDS AND SOCIAL AFFAIRS

4. Additional funds resulting from the adjustment of pension benefits as stipulated in this Circular shall be allocated by the Ministry of Finance to the Vietnam Social Security from the central government budget..

IV. IMPLEMENTATION PROVISIONS

1. This Circular shall take effect fifteen days after its publication in the Official Gazette.

The adjusted pension amount prescribed in this Circular shall take effect from January 1, 2004.

2. Any difficulties encountered during implementation should be reported to the Joint Ministries for study and resolution./.