Decree No. 159/2006/ND-CP on the implementation of retirement benefits for military personnel directly participating in the resistance war against America to save the country from April 30, 1975, back until then, who have served in the army for 20 years or more and have been discharged or demobilized.

DECREE

Regarding the implementation of retirement benefits for military personnel directly participating

in the resistance war against the United States to save the country from April 30, 1975, or earlier

who have served 20 years or more in the military and have been discharged or demobilized

___________________

THE GOVERNMENT

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

Considering the proposal of the Minister of National Defense.

DECREE:

Article 1. This Decree stipulates the implementation of monthly retirement benefits for military personnel directly participating in the resistance war against the United States to save the country from April 30, 1975, or earlier, who have served 20 years or more in the military and have been discharged or demobilized.

1. The subjects entitled to the monthly retirement benefits prescribed in Article 1 of this Decree are military personnel who were conscripted before April 30, 1975, have served 20 years or more in the military and have been discharged or demobilized before April 1, 2000, and fall into one of the following cases:

a) Have been discharged or demobilized;

b) War invalids with a labor capacity reduction of 81% or more currently undergoing treatment at war invalids rehabilitation centers or those who have returned home from such centers but have not yet received retirement benefits.

2. Non-applicable Subjects:

Those who violate the law and are serving a prison sentence, those who illegally leave the country, deserters, traitors, those who surrender, those who defect, or those declared missing by the court shall not be entitled to the benefits prescribed in this Decree.

Article 3.

1. The monthly pension shall be calculated based on the actual years of service (considered as social insurance contributions) and the average monthly salary used as the basis for social insurance contributions as follows: 15 years or more equals 45% of the average monthly salary used as the basis for social insurance contributions; thereafter, each additional year of social insurance contribution adds 3% for women and 2% for men. The maximum monthly pension shall be 75% of the average monthly salary used as the basis for social insurance contributions.

In the case of subjects entitled to subsistence allowance (non-commissioned officers, soldiers), the monthly pension is calculated based on the minimum wage prescribed by the Government.

2. The method for calculating the average monthly salary used as the basis for calculating the monthly pension is to calculate the average of the monthly salaries used as the basis for social insurance contributions in the last five years before discharge, demobilization, or transfer to a war invalids rehabilitation center under the Ministry of Labor, Invalids, and Social Affairs.

3. The monthly salary used as the basis for social insurance contributions includes rank pay, grade pay, and seniority and position allowances (if any), converted into corresponding salary coefficients as prescribed in Government Decree No. 25/CP dated May 23, 1993; the minimum monthly salary for calculating the pension is 290,000 VND.

4. The pension of the subjects prescribed in this Decree shall be calculated like those retiring before October 1, 2004, and adjusted like other monthly pension recipients before October 1, 2004, according to the provisions of the Government in Decrees No. 208/2004/NĐ-CP dated December 14, 2004, No. 117/2005/NĐ-CP dated September 15, 2005, No. 118/2005/NĐ-CP dated September 15, 2005, No. 93/2006/NĐ-CP dated September 7, 2006, and No. 94/2006/NĐ-CP dated September 7, 2006.

Article 4.

1. Military personnel entitled to the retirement benefits prescribed in this Decree shall enjoy medical insurance benefits; upon death, the person responsible for burial shall receive funeral assistance, and dependents shall receive monthly survivor's allowance or a lump-sum survivor's benefit, and other benefits as prescribed by the law on social insurance.

Article 5.

1. The subjects prescribed in Clause 1, Article 2 of this Decree shall be responsible for presenting original discharge, demobilization, war invalid certificates, and related documents to the Provincial Military Command (for centrally governed cities) for review. In cases where the subject's file does not contain sufficient legal grounds to establish a file for retirement benefits, the relevant state agency must confirm in writing and bear legal responsibility for such confirmations.

2. The Provincial Military Command (for centrally governed cities) shall accept, establish files, and examine eligibility for retirement benefits for the subjects prescribed in Clause 1, Article 2 of this Decree, and transfer them to the Military Social Insurance.

3. The Military Social Insurance shall be responsible for reviewing, issuing decisions on retirement benefits, and transferring them to the Vietnam Social Security for implementation.

Article 6. The funding source for implementing the retirement system stipulated in this Decree shall be guaranteed by the state budget.

1. The Ministry of National Defense shall take the lead and coordinate with the Ministry of Labor, Invalids, and Social Affairs, and the Ministry of Finance to guide the implementation of this Decree.

2. The Ministry of Finance shall be responsible for allocating annual funds in accordance with the State Budget Law to implement the provisions set forth in this Decree.

3. The Vietnam Social Security shall be responsible for receiving and paying pensions to the subjects as prescribed.

The subjects prescribed in Clause 1, Article 2 of this Decree shall begin to receive monthly retirement benefits from January 1, 2007.

Article 9. 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.