JOINT CIRCULAR No. 05/2000/TTLT-BLDTBXH-BQP-BCA GUIDING THE IMPLEMENTATION OF Decree No. 94/1999/NĐ-CP dated September 8, 1999 of the Government on amending and supplementing certain articles of the social insurance regulations for the military and police issued together with Decree No. 45/CP dated July 15, 1995 of the Government.

JOINT CIRCULAR

JOINT CIRCULAR NO. 05/2000/TT-LT-BLDTBXH-BQP-BCA dated February 18, 2000, of the Ministry of Labor, Invalids and Social Affairs - Ministry of National Defense - Ministry of Public Security guiding the implementation of Decree No. 94/1999/NĐ-CP dated September 8, 1999 of the Government on amending and supplementing certain articles of the Social Insurance Regulation for the military and police issued together with Decree No. 45/CP dated July 15, 1995 of the Government.

Implementing Decree No. 94/1999/NĐ-CP dated September 8, 1999 of the Government on amending and supplementing certain articles of the Social Insurance Regulation for officers, professional soldiers, non-commissioned officers, and soldiers of the People's Army and People's Police issued together with Decree No. 45/CP dated July 15, 1995 of the Government; following the opinion of the Ministry of Finance at Circular No. 5898 TC/HCSN dated November 19, 1999, the joint ministries of Labor, Invalids and Social Affairs - National Defense - Public Security guide the implementation as follows:

I. BENEFITS TO BE ENJOYED

1. Benefits for military personnel and public security personnel receiving salaries who retire early compared to the provisions of Clauses 1, 2, and 3 of Article 23 of the Social Insurance Regulation issued together with Decree No. 45/CP dated July 15, 1995 of the Government, amended and supplemented according to Clause 1 of Article 1 of Decree No. 94/1999/NĐ-CP are stipulated as follows:

a. Male aged 50 to under 55 years old, female aged 45 to under 50 years old, and having contributed to social insurance for at least 20 years with a reduced work capacity of 61% or more shall have their retirement pension calculated as prescribed in Clause 1 of Article 25 of the Social Insurance Regulation issued together with Decree No. 45/CP dated July 15, 1995 of the Government, but for each year retired before age 55 for males and 50 for females, the average monthly salary basis for social insurance contributions shall be reduced by 1%.

Example:

Comrade Lieutenant Colonel Tran Van An, aged 51, has contributed to social insurance for 26 years, does not meet the conditions for retirement under Clause 4, Article 23 of the Social Insurance Regulation issued together with Decree No. 45/CP dated July 15, 1995, has a reduced work capacity of 61%, and retired in October 1999. The percentage of his monthly retirement pension is calculated as follows:

Percentage (%) to calculate the retirement pension according to Clause 1 - Article 25 - Social Insurance Regulation issued together with Decree No. 45/CP:

26 years calculated as 67%.

Percentage (%) to reduce due to retiring before age 55 (for males) according to Decree No. 94/1999/NĐ-CP;

(55 years - 51 years) x 1% = 4%

- Percentage (%) to calculate the retirement pension according to Decree No. 94/1999/NĐ-CP

67% - 4% = 63%

b. Military personnel and public security personnel receiving salaries who have contributed to social insurance for at least 20 years, including at least 15 years in particularly arduous and hazardous jobs, with a reduced work capacity of 61% or more shall have their retirement pension calculated as prescribed in Clause 1 of Article 25 of the Social Insurance Regulation issued together with Decree No. 45/CP dated July 15, 1995 of the Government, but for each year retired before age 50 for males and 45 for females, the average monthly salary basis for social insurance contributions shall be reduced by 1%.

Example:

Comrade Colonel Nguyen Hoang Quan, aged 43, has contributed to social insurance for 22 years, including 15 years in particularly arduous jobs, has a reduced work capacity of 63%, and retired in November 1999. The percentage of his monthly retirement pension is calculated as follows:

- Percentage (%) to calculate the retirement pension according to Clause 1 - Article 25 - Social Insurance Regulation issued together with Decree No. 45/CP.

22 years calculated as 59%.

- Percentage (%) to reduce due to retiring before age 50 (for males) according to Decree No. 94/1999/NĐ-CP:

(50 years - 43 years) x 1% = 7%

- Percentage (%) to calculate the retirement pension according to Decree No. 94/1999/NĐ-CP.

59% - 7% = 52%

c. Military personnel and public security personnel receiving salaries who have contributed to social insurance for at least 30 years, male aged 50 to under 55 years old, female aged 45 to under 50 years old, when retiring shall receive a retirement pension calculated as prescribed in Clause 1 of Article 25 of the Social Insurance Regulation issued together with Decree No. 45/CP dated July 15, 1995 of the Government, without reducing the percentage rate and without undergoing a labor capacity assessment.

Example:

Comrade Senior Colonel Truong Huu Hao (male), aged 50, has contributed to social insurance for 30 years, and retired in December 1999. The percentage of his monthly retirement pension is calculated as follows:

- Percentage (%) to calculate the retirement pension according to Clause 1 - Article 25 - Social Insurance Regulation issued together with Decree No. 45/CP:

+ 15 years calculated as 45%.

+ From the 16th to the 30th year added 30%.

Total: 75%

- Percentage (%) to calculate the retirement pension according to Decree No. 94/1999/NĐ-CP:

+ 30 years calculated as 75%

2. Benefits for military personnel and public security personnel receiving salaries who transfer to other jobs (including transferring in place to enjoy the regime of defense civil servants, police civil servants, or transferring to state civil servants), supplemented according to Clause 2 of Article 1 of Decree No. 94/1999/NĐ-CP are stipulated as follows:

a. Military personnel and public security personnel receiving salaries who have contributed to social insurance for at least 15 years at a level corresponding to arduous, dangerous, or particularly arduous and dangerous jobs (as specified in the list of occupations by the Ministry of Labor, Invalids and Social Affairs) and then transferred to other jobs with lower social insurance contributions shall, upon retirement, base their retirement pension calculation on the highest five consecutive years' salary contributions for arduous, dangerous, or particularly arduous and dangerous jobs:

Example:

Comrade Senior Warrant Officer Nguyen Minh Duc, a professional soldier, warehouse material custodian, met the retirement conditions in February 2000 and had 15 years working in hazardous and dangerous jobs. His salary progression was as follows:

June 1974 enlisted; August 1977 became a warrant officer, repairman, primary level; August 1987 became a senior warrant officer, converted to coefficient 3.4; August 1989 became a senior warrant officer, converted to coefficient 3.65.

August 1992 transferred to become a defense civil servant, warehouse material custodian, converted to coefficient 2.49; August 1998 transferred back to a professional soldier, converted to primary level coefficient 3.5, rank of senior warrant officer; retired in February 2000.

Method to calculate the average monthly salary basis for calculating the retirement pension:

+ Calculate the highest average monthly salary of the five consecutive years working in hazardous and dangerous jobs:

- From August 1987 to July 1989, 24 months; coefficient 3.4; seniority 15%:

180,000 VND x 3,4 x 1,15 x 24 months = 16,891,200 VND

- From August 1989 to July 1992 is 36 months; coefficient 3,65; service period 18%:

180,000 VND x 3,65 x 1,18 x 36 months = 27,909,360 VND

+ Average salary: (16,891,200 + 27,909,360) ÷ 60 = 746,676 VND

b. Military personnel and public security officers receiving salaries who have served at least 20 years and, upon request from their organization, are decided by competent authorities (according to the Law on Officers and the Regulations for Professional Military Personnel of the People's Army; Ordinance on Security Forces, Ordinance on Public Security Officers) to transfer to the civil servant system of national defense or public security or to be reassigned to work in Party, State, or mass organizations outside the armed forces, if their retirement salary is lower than their salary while serving, shall take the average salary of social insurance contributions for the last five years before transferring out of the armed forces as the basis for calculating their retirement salary.

Example:

Comrade Tran Van Can, assistant, major since July 1988 with a salary coefficient of 5,3; has 30 years of military service; in August 1993 was reassigned to work at the Ministry of Construction as a senior specialist with a salary coefficient of 5,03; in August 1996 had a salary coefficient of 5,31; in September 1999 had a salary coefficient of 5,6 (Administrative Pay Scale - Code (01.002)); received pension in February 2000. The calculation of Comrade Can's average salary is as follows:

Comrade Can's salary before retirement (January 2000) had a lower coefficient than the salary for social insurance contributions before being transferred out of the military. Therefore, Comrade Can takes the average salary of the last five years before transferring out of the military (including 30% military service) as the basis for calculating the pension:

180,000 VND x 5,3 x 1,3 = 1,240,200 VND/month

c. Military personnel and public security officers receiving salaries who have been transferred to the civil servant system of national defense or public security or transferred out of the military and public security under the following circumstances when retiring with a salary lower than their salary while serving shall take the salary for social insurance contributions for ten years (including the last five years before transferring out of the military and public security plus the last five years before retirement) as the basis for calculating the retirement salary:

- Have served between 15 and less than 20 years and are decided by competent authorities (according to the Law on Officers and the Service Regulations for Professional Military Personnel of the People's Army; Ordinance on Security Forces, Ordinance on Public Security Officers) to transfer to the civil servant system of national defense or public security or to be reassigned to work in Party, State, or mass organizations outside the armed forces.

- Have served 20 years and voluntarily requested to transfer to work outside the armed forces.

Example:

Comrade Tran Van Sinh, assistant, lieutenant colonel since August 1988 with a salary coefficient of 4,15; has served 20 years; in October 1993 requested to transfer to the Ministry of Culture - Information as a senior propagandist with a salary coefficient of 3,73; in December 1996 had a salary coefficient of 3,93 (Pay Scale Code 17.177); received monthly pension in February 2000. The calculation of Comrade Sinh's average salary for calculating the pension is as follows:

+ Salary of the last five years before retirement:

- From February 1995 to November 1996 is 22 months; coefficient 3,73:

180,000 VND x 3,73 x 22 months = 14,770,800 VND

- From December 1996 to January 2000 is 38 months; coefficient 3,93:

180,000 VND x 3,93 x 38 months = 26,881,200 VND

+ Salary of the last five years before transferring out of the military:

- From October 1988 to September 1993 is 60 months; coefficient 4,15; service period 20%:

180,000 VND x 4,15 x 1,2 x 60 months = 53,784,000 VND

+ Average salary of ten years as the basis for calculating the pension:

(14,770,800 VND + 26,881,200 VND + 53,784,000 VND) ÷ 120 months = 795,300 VND

d. The calculation of the pension for the subjects specified in points a, b, and c above does not apply to those receiving salaries that do not fall within the salary scales prescribed by the State.

e. Those who have been calculated the pension according to the calculation method stipulated in one of the three cases specified in points a, b, and c above shall not enjoy the allowance provided for in Article 3 of Decision No. 812/TTg dated December 12, 1995 of the Government regarding the addition of beneficiaries of long-term disability allowance; additional allowance for single retirees and civil servants who are former military personnel.

3. The time female military personnel and public security officers receive maternity leave benefits as stipulated in Clause 3, Article 1 of Decree No. 94/1999/NĐ-CP shall be counted towards social insurance benefits. During this period, the Ministry of National Defense and the Ministry of Public Security do not pay 15% of the salary, and female military personnel and public security officers do not pay 5%. This period is defined as follows:

a. The time female military personnel and public security officers receive maternity leave benefits for up to 5 months, 6 months, and additional time due to multiple births as stipulated in Clauses 1 and 2, Article 10 of the Social Insurance Regulations for Military Personnel and Public Security Officers.

b. The time military personnel and public security officers receive leave benefits for nursing adopted infants as stipulated in Article 11 of the Social Insurance Regulations for Military Personnel and Public Security Officers.

The provisions above do not apply to cases of additional leave as stipulated in Clause 3, Article 10 of the Social Insurance Regulations for Military Personnel and Public Security Officers.

Example:

Comrade Pham Thi Dong, senior non-commissioned officer, with a salary coefficient of 3,7 and 16 years of service, took maternity leave for her second child in February 2000 and received social insurance benefits for 5 months, each month amounting to:

180,000 VND x 3,7 x 1,16 = 772,560 VND.

II. IMPLEMENTATION PROVISIONS

1. Procedures and documents for applying for social insurance benefits for the subjects stipulated in this Circular shall be implemented according to current regulations. For those specified in points a, b, and c of Point 2, Section I of this Circular, additional decisions on reassignment or other job transfers or transfers out of the armed forces are required.

2. For officials and staff of cryptographic services receiving salaries based on the salary scales of the armed forces, the provisions of this Circular shall apply.

3. This Circular shall take effect 15 days after the issuance of Decree No. 94/1999/NĐ-CP dated September 8, 1999 of the Government.

4. No adjustments will be made for cases that have already enjoyed social insurance benefits before the effective date of Decree No. 94/1999/NĐ-CP dated September 8, 1999.

5. Except for the points amended and supplemented as prescribed in this Circular, all other contents already stipulated in the Social Insurance Charter issued together with Decree No. 45/CP dated July 15, 1995, and Circular No. 29/LB-TT dated November 2, 1995, of the Joint Ministry of Labor - War Invalids and Social Affairs - National Defense - Public Security remain valid.

In the course of implementation, if there are any difficulties, please report to the Joint Ministry of Labor - War Invalids and Social Affairs - National Defense - Public Security for study.