Circular No. 19/2018/TT-BLDTBXh guiding the establishment of agreement documents for voluntary supplementary pension programs at enterprises

CIRCULAR

GUIDANCE ON THE CONSTRUCTION OF AGREEMENT DOCUMENTS FOR PARTICIPATION IN THE VOLUNTARY PENSION SUPPLEMENT PROGRAM AT ENTERPRISES

CHAPTER TRUST PROGRAM FOR VOLUNTARY PENSION SUPPLEMENT AT ENTERPRISES

Based on Decree No. 14/2017/ND-CP dated February 17, 2017 of the Government on the functions, tasks, powers, and organizational structure of the Ministry of Labor, Invalids and Social AffairsPursuant to the request of the Director General of the Department of Vocational Education;

Pursuant to Decree No. 88/2016/ND-CP dated July 1, 2016 of the Government on the voluntary pension supplement program;

At the proposal of the Director of the Social Insurance Department,

The Minister of Labor, Invalids and Social Affairs issues this Circular guiding the construction of agreement documents for participation in the voluntary pension supplement program at enterprises.

PART I

GENERAL PROVISIONS

Article 1. Scope of Regulation

This Circular guides the construction of agreement documents for participation in the voluntary pension supplement program as prescribed in Decree No. 88/2016/ND-CP dated July 1, 2016 of the Government on the voluntary pension supplement program (hereinafter referred to as Decree No. 88/2016/ND-CP).

Article 2. Applicability

1. Workers aged 15 years or older working under labor contracts with employers.

2. Employers are enterprises, agencies, organizations, cooperatives, business households, individuals who lease or employ workers under labor contracts.

3. Organizations and individuals related to the voluntary pension supplement program.

Chapter II

CONSTRUCTION AND SIGNING OF AGREEMENT DOCUMENTS

Article 3. Agreement document for participation in the voluntary pension supplement program

1. The agreement document for participation in the voluntary pension supplement program (hereinafter referred to as the agreement document) is a written agreement between workers and employers regarding the responsibilities of contributions, rights, and obligations of each party participating in the voluntary pension supplement program.

2. The agreement document must be made in three copies, one copy retained by the worker, one copy retained by the employer, and one copy retained by the enterprise managing the pension fund.

Article 4. Principles for signing the agreement document

1. Voluntary, equality, good faith, cooperation, and honesty.

2. Freedom to sign the agreement document but not contrary to laws, collective labor agreements, and social morals.

Article 5. Content of the agreement document

The agreement document for participation in the voluntary pension supplement program shall be implemented according to point b Clause 2 Article 8 of Decree No. 88/2016/ND-CP, including the following contents:

1. The name of the voluntary pension supplement program chosen by the worker to participate in accordance with Article 6 of this Circular.

2. The basic content of the voluntary pension supplement program in accordance with Article 7 of this Circular.

3. The term of the agreement document in accordance with Article 8 of this Circular.

4. The contribution level, frequency, and time of contribution of the employer in accordance with Article 9 of this Circular.

5. The contribution level, frequency, time, and method of contribution of the worker (in cases where the worker contributes together with the employer) in accordance with Article 10 of this Circular.

6. Rights and obligations of the worker when participating in the voluntary pension supplement program in accordance with Articles 11 and 12 of this Circular.

7. Rights and obligations of the employer when contributing to the worker in accordance with Articles 13 and 14 of this Circular.

8. Matters authorized by the worker to the employer in accordance with Article 15 of this Circular.

9. Procedures for changing the contents of the agreement document (if any).

10. Cases of temporary suspension and termination of participation in the voluntary pension supplement program in accordance with Articles 16 and 17 of this Circular.

11. Other agreed matters between the worker and the employer that do not contravene the provisions of the law (if any).

Article 6. Name of the Voluntary Supplementary Pension Program

1. Based on labor management needs and financial capacity, employers may establish one or more voluntary supplementary pension programs to contribute to the pension fund for employees.

2. Employees choose to participate in a voluntary supplementary pension program that they meet the conditions and have a desire to join.

Article 7. Basic Content of the Voluntary Supplementary Pension Program

The basic content of the voluntary supplementary pension program in the agreement includes:

1. Objectives and participation conditions.

2. Commitment to the minimum contribution level of the employer when the employee participates in the voluntary supplementary pension program.

3. The pension fund management enterprise selected by the employer.

4. Conditions for receiving benefits and payment options from the pension fund.

Article 8. Term of the Agreement

1. When signing the agreement, both the employee and the employer must clearly state the term of the agreement, the start date, and the end date of participation in the voluntary supplementary pension program.

2. The end date of participation in the voluntary supplementary pension program shall not exceed the termination date of the labor contract between the employee and the employer.

Article 9. Contribution Level, Frequency, and Duration of the Employer

The employer specifically determines the contribution level, frequency, and duration as follows:

1. The contribution amount is either a fixed sum or a percentage of the employee's salary. The employer's contribution level shall not be lower than the minimum commitment level stipulated in Clause 2, Article 7 of this Circular.

2. The contribution frequency is monthly, every two months, every three months, or another frequency chosen by the employer based on their ability and needs.

3. The contribution period is agreed upon by the employer and employee, consistent with the voluntary supplementary pension program established by the employer and chosen by the employee to participate in. The contribution period is specified in detail in the agreement.

Article 10. Contribution Level, Frequency, Duration, and Method of Employee Contributions

In cases where the employee also contributes to the pension fund, the specific determination of the contribution level, frequency, duration, and method of contribution is as follows:

1. The contribution amount is either a fixed sum or a percentage of the employee's salary.

2. The contribution frequency is monthly, every two months, every three months, or another frequency chosen by the employee based on their ability and needs.

3. The contribution period is agreed upon by the employee and employer, consistent with the voluntary supplementary pension program established by the employer and chosen by the employee to participate in. The contribution period is specified in detail in the agreement.

4. The employee contributes to the pension fund through the employer who entrusts the contribution or deducts from the employee's monthly salary to contribute to the pension fund.

Article 11. Rights of Workers

When signing an agreement document, workers must be guaranteed the following rights:

1. Decide to participate in or cease participating in the voluntary supplementary pension program.

2. Decide on their contribution level, frequency, duration, method of contribution, and any changes thereto (if applicable), in accordance with the voluntary supplementary pension program established by the employer and chosen for participation by the worker.

3. Enjoy all benefits stipulated in the voluntary supplementary pension program they have joined, as detailed in the agreement document, and ensure compliance with legal provisions.

4. Negotiate with the employer to amend the contents of the agreement document or request the employer to fully implement the commitments made in the agreement document and the voluntary supplementary pension program.

5. Receive their employer's contributions and investment returns from such contributions when the employer unilaterally ceases participation in the voluntary supplementary pension program.

6. Unilaterally terminate the implementation of the agreement document.

7. Other rights agreed upon with the employer and as prescribed by law.

Article 12. Obligations of Workers

1. Fulfill the contribution commitment as agreed in the agreement document.

2. Notify the employer at least five working days in advance for any changes to the contribution level, frequency, duration, and method of contribution; three working days in advance for any temporary suspension or cessation of the agreement document.

3. Other obligations agreed upon with the employer and as prescribed by law.

Article 13. Rights of Employers

1. Determine the contribution level, frequency, and duration of their own contributions.

2. Negotiate with workers regarding changes to the agreement document contents related to their responsibilities and obligations.

3. Recover their contributions to workers and investment returns from such contributions in cases specified in the voluntary supplementary pension program and the agreement document.

4. Unilaterally terminate the implementation of the agreement document when workers violate legal provisions concerning the voluntary supplementary pension program or the company’s voluntary supplementary pension program.

5. Other rights agreed upon with workers and as prescribed by law.

Article 14. Obligations of Employers

1. Make contributions according to the agreed contribution level, frequency, and duration.

2. Adhere to and fulfill the contents of the agreement document and legal provisions.

3. Pay the amount entrusted by workers to the employer (if any).

4. Process procedures with the pension fund management company so that workers can enjoy benefits or continue contributing to the fund.

5. Other obligations agreed upon with workers and as prescribed by law.

Article 15. Workers Entrusting Employers

Workers entrust employers to perform the following tasks:

1. Sign a pension fund participation contract with the pension fund management company.

2. Select investment options as provided for in the pension fund charter.

3. Pay fees and expenses as provided for in the pension fund charter.

Article 16. Cases of temporary suspension from participation

The employee and the employer may agree on the temporary suspension from the voluntary supplementary pension program in one of the following cases:

1. The employee and the employer agree to suspend the implementation of the agreement.

2. The employee temporarily suspends the labor contract.

Article 17. Cases of termination of participation

The employee and the employer terminate their participation in the voluntary supplementary pension program in one of the following cases:

1. The agreement expires without an extension or renewal of the agreement.

2. The employee and the employer agree to terminate participation.

3. When the employee unilaterally terminates the implementation of the agreement.

4. When the employer unilaterally terminates the implementation of the agreement.

5. When the labor contract between the employee and the employer terminates before the expiration date of the agreement.

Chapter III

IMPLEMENTING PROVISIONS

Article 18. Effective Date

This Circular takes effect from December 15, 2018.

Article 19. Implementation

1. Employers, employees, pension fund management enterprises, and related organizations and individuals are responsible for implementing this Circular.

2. In case of difficulties during implementation, they are requested to report to the Ministry of Labor - Invalids and Social Affairs for consideration and resolution within its authority./.