Decree No. 134/2015/ND-CP provides detailed regulations on certain provisions of the Social Insurance Law regarding voluntary social insurance.

DECREE

Article 24Regulations on certain provisions of the Social Insurance Law regarding voluntary social insurance

___________________

Pursuant to the Law on Organization of the Government dated December 25, 2001;

Based on the Social Insurance Law dated November 20 year 2014;

Based on Resolution No. 93/2015/QH13 dated June 22, 2015 of the National Assembly on implementing policies for one-time social insurance benefits for workerswith respect to employees;

At the proposal of the Minister of Labor, Invalids and Social Affairs,

The Government issues this Decree to provide detailed regulations on certain provisions of the Social Insurance Law regarding voluntary social insurance.

PART I

GENERAL PROVISIONS

Article 1. Scope of Regulation

This Decree details certain provisions of the Social Insurance Law on voluntary social insurance.

Article 2. Applicability

1. A person participating in voluntary social insurance is a Vietnamese citizen aged 15 years or older who does not fall under the compulsory social insurance subjects as stipulated in Clause 4, Article 2 of the Social Insurance Law.

2. Agencies, organizations, and individuals related to voluntary social insurance.

Chapter II

REGIME OF VOLUNTARY SOCIAL INSURANCE

Section 1

 RETIREMENT BENEFITS

Article 3. Monthly pension amount

The monthly pension amount according to Article 74 of the Social Insurance Law is stipulated as follows:

1. The monthly pension amount is calculated by multiplying the percentage of the monthly pension benefit with the average monthly income contributed to social insurance.

2. The percentage of the monthly pension benefit is calculated as follows:

a) For those retiring from January 1, 2016 to before January 1, 2018, the monthly pension rate is calculated at 45% corresponding to 15 years of social insurance contributions, with an additional 2% for men and 3% for women for each additional year of contribution thereafter; the maximum rate is 75%.

b) For women retiring from January 1, 2018 onwards, the monthly pension rate is calculated at 45% corresponding to 15 years of social insurance contributions, with an additional 2% for each additional year of contribution thereafter; the maximum rate is 75%.

c) For men retiring from January 1, 2018 onwards, the monthly pension rate is calculated at 45% corresponding to the number of years of social insurance contributions as shown in the table below, with an additional 2% for each additional year of contribution thereafter; the maximum rate is 75%:

Article 4. Average monthly income contributed to social insurance

The average monthly income contributed to social insurance according to Article 79 of the Social Insurance Law is stipulated as follows:

1. The average monthly income contributed to social insurance is calculated by averaging the monthly incomes already contributed to social insurance over the entire period of contribution.

2. The monthly income already contributed to social insurance used as the basis for calculating the average monthly income contributed to social insurance as stipulated in Clause 1 of this Article shall be adjusted as follows:

a) The adjusted monthly income already contributed to social insurance for each year is equal to the monthly income already contributed to social insurance for that year multiplied by the adjustment rate for monthly income already contributed to social insurance for the corresponding year.

b) The adjustment factor for the monthly income already contributed to social insurance is calculated based on the average annual consumer price index published annually by the General Statistics Office and is determined by the following formula:

Where:

- t: Any year during the adjustment period;

- The adjustment factor for the monthly income already contributed to social insurance for year t is rounded to two decimal places and the minimum value is 1 (one).

3. In cases where a person participating in voluntary social insurance makes a lump-sum payment for the remaining years according to Point e, Clause 1, Article 9 of this Decree, the average monthly income contributed to social insurance shall be calculated according to the provisions of Clause 1 and Clause 2 of this Article, wherein the monthly income already contributed to social insurance under the lump-sum payment method for the remaining years shall be adjusted to 1 (one).

4. Annually, the Ministry of Labor - Invalids and Social Affairs shall determine the adjustment rate for monthly income already contributed to social insurance for persons participating in voluntary social insurance based on the provisions of Clause 2 of this Article and the average consumer price index published by the General Statistics Office.

Article 5. Retirement benefits for individuals who previously had mandatory social insurance contributions

The retirement benefit system for individuals who previously had mandatory social insurance contributions under Article 71 of the Social Insurance Law is stipulated as follows:

1. The period for enjoying retirement benefits is the total time of mandatory social insurance contributions and voluntary social insurance contributions, excluding the time already counted for one-time social insurance benefits.

2. Conditions for receiving pension

Individuals participating in voluntary social insurance will receive a pension when they meet one of the following conditions:

a) Persons participating in voluntary social insurance with a period of entitlement to retirement benefits of 20 years or more have the age requirement for receiving a pension as follows: men must be 60 years old and women must be 55 years old, except in the case provided for in Point b of this Clause;

b) In cases where persons participating in voluntary social insurance have made compulsory social insurance contributions for 20 years or more, the age requirement for receiving a pension shall be implemented according to the provisions of Clauses 1, 2, and 4 of Article 54 and Article 55 of the Social Insurance Law;

c) Female workers who are full-time or part-time employees at communes, wards, or towns and participate in compulsory social insurance, meeting the conditions for receiving a pension as stipulated in Clause 3, Article 54 of the Social Insurance Law, and retain their time of social insurance contributions and continue to participate in voluntary social insurance, may receive a pension upon request.

3. The monthly pension amount is calculated by multiplying the percentage of the monthly pension by the average monthly salary and income for social insurance contributions as stipulated in Clause 4 of this Article.

In cases where persons participating in voluntary social insurance have made compulsory social insurance contributions for 20 years or more, excluding the subjects specified in Point i, Clause 1, Article 2 of the Social Insurance Law and Point c, Clause 2 of this Article, the minimum monthly pension shall be equal to the basic wage at the time of receiving the pension.

4. The average monthly salary and income for social insurance contributions for calculating the pension and one-time allowance is calculated according to the following formula:

Where:

- The average monthly salary for mandatory social insurance contributions is implemented according to the provisions of Articles 62 and 63 of the Social Insurance Law.

- The total monthly income for voluntary social insurance contributions is the sum of the monthly income for voluntary social insurance contributions that have been adjusted according to the provisions of Clause 2 and Clause 3 of Article 4 of this Decree.

5. The one-time benefit upon retirement is calculated according to the provisions of Article 75 of the Social Insurance Law, with each additional year of social insurance contributions beyond the number of years corresponding to a 75% pension rate being calculated as 0.5 months of the average monthly salary and income contributed to social insurance as stipulated in Clause 4 of this Article.

6. One-time social insurance is implemented according to the provisions of Article 7 of this Decree. The amount of one-time social insurance benefit is calculated based on the average monthly salary and income contributed to social insurance as stipulated in Clause 4 of this Article.

Article 6. Time of Pension Payment

1. The date of receipt of the pension is counted from the month immediately following the month when the person participating in voluntary social insurance meets the conditions for receiving a pension as stipulated in Article 73 of the Social Insurance Law and Clause 2, Article 5 of this Decree.

2. In cases where a person participating in voluntary social insurance makes a lump-sum payment for the remaining years according to Point e, Clause 1, Article 9 of this Decree to meet the conditions for receiving a pension, the date of receipt of the pension is counted from the month immediately following the month when the lump-sum payment is made.

Article 7. One-time social insurance

1. Persons participating in voluntary social insurance are entitled to one-time social insurance benefits as stipulated in Article 77 of the Social Insurance Law and Resolution No. 93/2015/QH13 dated June 22, 2015 of the National Assembly on implementing policies for one-time social insurance benefits for workers.

2. The application dossier for one-time social insurance shall be implemented according to the provisions of Article 109 of the Social Insurance Law.

3. The settlement of one-time social insurance shall be carried out according to the provisions of Clause 3 and Clause 4 of Article 110 of the Social Insurance Law.

Section 2

 FUNERAL BENEFITS REGIME

Article 8. Funeral benefits regime for relatives of individuals participating in voluntary social insurance who die after having compulsory social insurance contribution periods

Funeral benefits for dependents of persons participating in voluntary social insurance who die or are declared dead by a court and had previously made compulsory social insurance contributions according to Article 71 of the Social Insurance Law are regulated as follows:

1. The period of entitlement to funeral benefits is the total period of compulsory social insurance and voluntary social insurance contributions, excluding the period of compulsory social insurance contributions already counted towards one-time social insurance benefits.

2. The person responsible for burial shall receive a funeral allowance equal to ten times the minimum wage for the deceased or those declared dead in one of the following cases:

a) Individuals participating in voluntary social insurance with at least 12 months of compulsory social insurance contributions;

b) Individuals participating in voluntary social insurance with at least 60 months of funeral benefit calculation period;

c) Individuals participating in voluntary social insurance receiving monthly disability allowance and work-related illness benefits who have stopped working;

d) Individuals receiving pension.

3. In cases where the deceased person participating in voluntary social insurance falls into one of the following categories, the dependents as stipulated in Clause 2, Article 67 of the Social Insurance Law are entitled to monthly funeral benefits as stipulated in Article 68 of the Social Insurance Law:

a) Having at least 15 years of compulsory social insurance contributions but not yet enjoying one-time social insurance benefits;

b) Receiving monthly disability allowance and work-related illness benefits with a reduction in labor capacity of 61% or more;

c) Receiving pension with at least 15 years of compulsory social insurance contributions prior to retirement.

4. In cases where the dependents are entitled to monthly funeral benefits as stipulated in Clause 3 of this Article and wish to receive a one-time funeral benefit, they are entitled to a one-time funeral benefit as stipulated in Clauses 2 and 3, Article 81 of the Social Insurance Law, except in cases where the child is under six years old, or the child, spouse, or parent has a reduced work capacity of 81% or more.

5. In case the voluntary social insurance participant dies or is declared dead by the court without having relatives as specified in Clause 6, Article 3 of the Social Insurance Law, the determination of the person receiving a one-time pension allowance shall be carried out in accordance with the provisions of the law on inheritance.

Chapter III

SOCIAL INSURANCE FUND

Article 9. Contribution methods

The contribution method for voluntary social insurance according to Clause 2 of Article 87 of the Social Insurance Law is regulated as follows:

1. Individuals participating in voluntary social insurance may choose one of the following contribution methods to contribute to the pension and funeral fund:

a) Monthly contributions;

b) Contributions every three months;

c) Contributions every six months;

d) Contributions annually;

đ) Contributions for multiple years ahead but not exceeding once every five years;

e) Paying once for the remaining years for those participants who have met the age requirement to receive old-age pension benefits as prescribed but have less than 10 years (120 months) of social insurance contributions, thereby allowing them to pay up to 20 years of contributions to receive old-age pension benefits according to Point e, Clause 1 of this Article.

2. In cases where voluntary social insurance participants have reached the retirement age as prescribed but still lack more than 10 years of social insurance contributions, if they wish, they may continue to voluntarily contribute to social insurance according to one of the methods stipulated in Points a, b, c, d, and đ of Clause 1 of this Article until their remaining contribution period does not exceed 10 years, at which point they can pay once for the remaining years to receive old-age pension benefits as prescribed in Point e, Clause 1 of this Article.

Article 10. Contribution Levels

The contribution levels for voluntary social insurance under Clause 1, Article 87 of the Social Insurance Law and according to the payment methods stipulated in Clause 1, Article 9 of this Decree are defined as follows:

1. The monthly contribution rate is 22% of the monthly income level chosen by the voluntary social insurance participant.

The monthly income level chosen by the voluntary social insurance participant must be the lowest equal to the poverty standard for rural households as defined by the Prime Minister's regulations and the highest equal to 20 times the basic wage at the time of contribution.

2. The amount paid every three months, six months, or twelve months is determined by multiplying the monthly payment amount prescribed in Clause 1 of this Article by 3 for the three-month payment method; by 6 for the six-month payment method; and by 12 for the twelve-month payment method.

3. The amount paid once for future years as prescribed in Point đ, Clause 1, Article 9 of this Decree is calculated by summing the total contribution amounts of previous months, discounted at the average monthly investment return rate of the social insurance fund announced by the Vietnam Social Security of the preceding year.

4. The amount paid once for the remaining years as prescribed in Point e, Clause 1, Article 9 of this Decree is calculated by summing the total contribution amounts of the remaining months, applying a compounded interest rate equal to the average monthly investment return rate of the social insurance fund announced by the Vietnam Social Security of the preceding year.

5. In cases where voluntary social insurance participants have contributed according to the three-month, six-month, or twelve-month payment methods or have paid once for future years as prescribed in Clauses 2 and 3 of this Article, during which time the Prime Minister adjusts the poverty standard for rural households, there is no need to adjust the difference in the amount already paid.

6. In cases where voluntary social insurance participants have contributed according to the three-month, six-month, or twelve-month payment methods or have paid once for future years as prescribed in Points b, c, d, and đ, Clause 1, Article 9 of this Decree, during which time they fall into one of the following situations, they will be entitled to a partial refund of the previously paid amount:

a) Ceasing to participate in voluntary social insurance and switching to mandatory social insurance;

b) Receiving a one-time social insurance benefit as stipulated in Article 7 of this Decree;

c) Being deceased or declared dead by a court.

The refund amount for voluntary social insurance participants as prescribed in Points a and b of this Clause or for the dependents of workers as prescribed in Point c of this Clause is calculated based on the amount paid corresponding to the remaining time compared to the time paid under the aforementioned payment method and does not include state support payments (if any).

Article 11. Changing Contribution Methods and Monthly Income Levels for Voluntary Social Insurance

Voluntary social insurance participants are allowed to change their payment method or the monthly income level used as the basis for voluntary social insurance contributions. Changing the payment method or the monthly income level used as the basis for voluntary social insurance contributions must be done at least after completing the previously selected payment method.

Article 12. Time of Payment

1. The time of payment for social insurance under the payment methods prescribed in Points a, b, c, and d Clause 1 Article 9 of this Decree shall be implemented as follows:

a) In the month for the monthly payment method;

b) Within three months for the payment method every three months;

c) Within the first four months for the payment method every six months;

d) Within the first seven months for the payment method every twelve months.

2. The payment time for social insurance for cases of paying once for future years or paying once for the remaining years as prescribed in Points đ and e, Clause 1, Article 9 of this Decree is implemented at the time of registering the payment method and the monthly income level used as the basis for payment.

3. If the voluntary social insurance participant fails to make social insurance payments beyond the prescribed time in Clause 1 of this Article, it will be considered as temporarily suspending voluntary social insurance contributions. Those who are temporarily suspended from making voluntary social insurance contributions, if they wish to continue contributing, must re-register the payment method and the monthly income level used as the basis for social insurance contributions with the social insurance agency. In cases where they wish to make up for the late payments, the amount to be made up is calculated by summing the total contribution amounts of the late months, applying a compounded interest rate equal to the average monthly investment return rate of the social insurance fund announced by the Vietnam Social Security of the preceding year.

Article 13. Procedures for Re-registering the Payment Method and Monthly Income Basis for Voluntary Social Insurance Contributions

1. Documents for re-registering the payment method and monthly income basis for voluntary social insurance contributions include:

a) Social insurance book;

b) Application form for social insurance participation.

2. Processing re-registration of the payment method and monthly income basis for voluntary social insurance contributions.

a) The voluntary social insurance participant submits the documents specified in Clause 1 of this Article to the social insurance agency;

b) The social insurance agency is responsible for processing within the day if all required documents are received as prescribed. If not processed, a written response must be provided with clear reasons.

Article 14. Support for Social Insurance Contributions for Voluntary Social Insurance Participants

1. Level of support and eligible recipients:

Voluntary social insurance participants are supported by the State with a percentage (%) of the monthly social insurance contribution based on the poverty standard for rural households as prescribed in Clause 1, Article 10 of this Decree, specifically:

a) Thirty percent for voluntary social insurance participants from poor households;

b) Twenty-five percent for voluntary social insurance participants from near-poor households;

c) Ten percent for other eligible recipients.

Depending on economic and social conditions, budget balancing capacity, and combining social resource mobilization, provincial People's Committees under central cities shall submit proposals to their respective People's Councils to decide on additional support for contributions to voluntary social insurance for participants within their jurisdictions beyond the levels specified in this Decree.

Based on the economic and social development conditions and the state budget capacity in each period, the Government will consider adjusting the contribution support level for voluntary social insurance participants accordingly.

3. Method of support

3. Methods of Support:

a) Voluntary social insurance participants who belong to the group eligible for support in paying the portion of social insurance contributions that they are responsible for to the social insurance agency or voluntary social insurance collection agents designated by the social insurance agency;

b) Every three months, six months, or twelve months, the social insurance agency compiles the number of beneficiaries eligible for support, the amount collected from beneficiaries, and the state budget support amount according to the form issued by the Vietnam Social Security after obtaining the agreement of the Ministry of Finance, and sends it to the financial authority for transferring funds into the social insurance fund;

c) The financial authority, based on local regulations on budget management levels and the list of voluntary social insurance participants and the state budget support amount transferred by the social insurance agency, is responsible for transferring funds into the social insurance fund quarterly; by the latest date of December 31 each year, the transfer of the support funds into the social insurance fund for that year must be completed.

4. The funding for supporting social insurance contributions for voluntary social insurance participants shall be guaranteed by local budgets according to the current state budget decentralization; the central budget will provide support for localities with difficult budgets.

Article 15. Procedures for receiving support for voluntary social insurance contributions

1. The application documents for support for the subjects specified in Point a and Point b, Clause 1, Article 14 of this Decree include:

a) Application form for voluntary social insurance registration for cases registering for voluntary social insurance for the first time;

b) Information adjustment application form for cases that have already participated in voluntary social insurance.

2. Processing of support for voluntary social insurance contributions.

a) The voluntary social insurance participant submits the application documents stipulated in Clause 1 of this Article to the social insurance agency.

b) The social insurance agency is responsible for processing within the day if all required documents are received as prescribed. If not processed, a written response must be provided with clear reasons.

Chapter IV

IMPLEMENTING PROVISIONS

Article 16. Transitional Provisions

1. The provisions of this Decree apply to individuals who have participated in voluntary social insurance before January 1, 2016.

2. Individuals receiving monthly pensions before January 1, 2016, will continue to follow previous regulations and may have their benefits adjusted.

3. A voluntary social insurance participant who previously had compulsory social insurance participation periods, including periods with regional allowances, shall, in addition to pension, lump-sum social insurance payment, and survivor benefits, be entitled to a one-time regional allowance under the provisions of the Compulsory Social Insurance Law.

4. A voluntary social insurance participant who meets the conditions and enjoys voluntary social insurance benefits before January 1, 2016, shall continue to follow the provisions of the Social Insurance Law 2006.

5. In cases where a voluntary social insurance participant has made contributions according to the methods of three months, six months, twelve months at a time, or in one lump sum for future years, including periods after the implementation date of the contribution support policy, the contribution support provisions of Article 14 of this Decree shall not apply to the already paid voluntary social insurance contributions.

6. The entire balance of the voluntary social insurance fund as stipulated by the Social Insurance Law 2006 up to December 31, 2015, shall be supplemented into the pension and death benefit fund according to the provisions of the Social Insurance Law 2014.

Article 17. Effective Date

1. This Decree takes effect from February 15, 2016.

The provisions of this Decree shall be applied from January 1, 2016, except for the provision in Clause 2 of this Article.

2. The State's support for voluntary social insurance contributions for voluntary social insurance participants shall be implemented from January 1, 2018. There will be no support for contributions made before January 1, 2018, except for lump-sum payments for remaining years according to the contribution method stipulated in Point e, Clause 1, Article 9 of this Decree.

3. The following documents shall cease to be effective upon the entry into force of this Decree:

a) Decree No. 190/2007/NĐ-CP dated December 28, 2007 of the Government guiding certain provisions of the Social Insurance Law on voluntary social insurance;

b) Decree No. 134/2008/NĐ-CP dated December 31, 2008 of the Government adjusting monthly income already paid for social insurance for voluntary social insurance participants.

Article 18. Responsibilities for Implementation

1. The Minister of Labor, Invalids, and Social Affairs shall be responsible for guiding the implementation of this Decree.

2. The Minister of Finance shall be responsible for ensuring the budget to implement the support policy for voluntary social insurance participants as stipulated in this Decree.

3. Every year, the Vietnam Social Security shall be responsible for announcing the average investment return rate of the social insurance fund of the previous year.

4. Every year, the General Statistics Office under the Ministry of Planning and Investment shall be responsible for promptly providing the average consumer price index of the year to the Ministry of Labor, Invalids, and Social Affairs.

5. The social insurance agency is responsible for cross-referencing voluntary social insurance participants as specified in Point a and Point b, Clause 1, Article 14 of this Decree with the list of poor households and near-poor households provided by local authorities to determine the support recipients among these households.

6. Ministers, heads of ministerial-level agencies, heads of government-affiliated agencies, Chairpersons of provincial People's Committees directly under the central government shall be responsible for implementing this Decree.