Decree No. 208/2004/ND-CP on Adjusting Pensions and Social Insurance Benefits

DECREE OF THE GOVERNMENT

Regarding the adjustment of pension and social insurance benefits 

THE GOVERNMENT

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

Pursuant to the Labor Code on June 23, 1994 and the Law Amending and Supplementing Certain Provisions of the Labor Code on April 2, 2002;

Pursuant to Resolution No. 17/2003/QH11 dated November 4, 2003 on the state budget for 2004 and Resolution No. 19/2003/QH11 dated November 26, 2003 on the tasks of the 11th National Assembly session in 2004;

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

DECREE:

Article 1. Adjust the monthly pension and social insurance benefits for the following categories:

1. Civil servants, public officials, workers, employees, members of armed forces, and persons engaged in confidential work receiving monthly retirement pay according to the salary scale and table prescribed by the State.

2. Workers, employees, and laborers receiving monthly retirement pay who have both periods of time receiving salaries according to the salary scale and table prescribed by the State and periods of time receiving salaries not according to the salary scale and table prescribed by the State.

3. Workers and employees currently receiving monthly disability benefits, including those receiving monthly benefits under Decision No. 91/2000/QĐ-TTg dated August 4, 2000 of The Prime Minister.

4. Rubber plantation workers currently receiving monthly benefits.

5. Village, ward, and town officials currently receiving monthly allowances under Decree No. 09/1998/NĐ-CP dated January 23, 1998 and Decree No. 121/2003/NĐ-CP dated October 21, 2003 of the Government.

Article 2. From October 1, 2004 to September 30, 2005, increase the current monthly retirement pay and monthly benefits by 10% for the subjects enjoying retirement pay and monthly benefits before October 1, 2004 as stipulated in Article 1 of this Decree.

Article 3. The average monthly salary paid for social insurance contributions serving as the basis for calculating retirement pay, one-time social insurance benefits, one-time pension, and adjustment of retirement pay for those receiving salaries according to the new salary scale and table prescribed in Resolution No. 730/2004/NQ-UBTVQHK11 dated September 30, 2004 of the Standing Committee of the National Assembly regarding approval of the position salary table and position allowance table for state leaders; the specialized and vocational salary table for the judiciary and prosecution sectors; Decision No. 128/QĐ-TW dated December 14, 2004 of the Central Committee's Secretariat concerning the salary system for Party cadres, civil servants, employees, and mass organizations; Decree No. 204/2004/NĐ-CP dated December 14, 2004 of the Government concerning the salary system for cadres, civil servants, employees, and armed forces; and Decree No. 205/2004/NĐ-CP dated December 14, 2004 of the Government concerning the salary scale and table and various allowances applicable in state-owned companies, from October 1, 2004 to September 30, 2005 shall be as follows:

1. The average monthly salary paid for social insurance contributions serving as the basis for calculating retirement pay and social insurance benefits shall be calculated as follows:

a) For the period of social insurance contributions made before October 1, 2004: calculated based on the salary received and contributed according to the provisions of Decree No. 25/CP dated May 23, 1993 of the Government, Decree No. 26/CP dated May 23, 1993 of the Government, Resolution No. 35/NQ-UBTVQHK9 dated May 17, 1993 of the Standing Committee of the National Assembly, and Decision No. 69-QĐ/TW dated May 17, 1993 of the Central Committee's Secretariat;

b) For the period of social insurance contributions made from October 1, 2004 onwards: calculated based on the salary within the new salary scale and table prescribed in the Government's Decrees, the Standing Committee's Resolutions, and the Central Committee's Decisions concerning the new salary system mentioned above.

2. For those retiring from October 1, 2004 to September 30, 2005, the retirement pay of retirees will be adjusted once at the time of retirement with an increase corresponding to the retirement date according to the following regulations:

Article 4. For those retiring under the provisions of Clause 2, Article 1 of this Decree, only the portion of retirement pay based on the salary within the salary scale and table prescribed by the State will be adjusted. The adjustment levels will be implemented according to the provisions of Article 2 and Clause 2, Article 3 of this Decree.

Article 5. The average monthly salary paid for social insurance contributions serving as the basis for calculating retirement pay for those retiring before October 1, 2004 and those who started to enjoy retirement benefits from October 1, 2004 to before October 1, 2005 shall be calculated based on the salary prescribed in the documents specified in Subparagraph a, Clause 1, Article 3 of this Decree. The adjustment of retirement pay will be carried out according to the adjustment level of retirement pay for those retiring before October 1, 2004.

Article 6. The funding for adjusting retirement pay and monthly benefits applicable to the subjects stipulated in Article 1 of this Decree shall be as follows:

1. Funding for adjusting retirement pay and social insurance benefits before October 1, 1995 shall be guaranteed by the state budget.

2. Funding for adjusting retirement pay and social insurance benefits from October 1, 1995 onwards (including village, town, and township cadres currently receiving monthly social insurance benefits according to Decree No. 09/1998/NĐ-CP dated January 23, 1998 and Decree No. 121/2003/NĐ-CP dated October 21, 2003 of the Government) shall be guaranteed by the social insurance fund.

Article 7. This Decree shall take effect fifteen days after its publication in the Official Gazette.

The subjects stipulated in Article 1 of this Decree shall enjoy the adjusted monthly retirement pay and benefits according to the provisions of this Decree starting from October 1, 2004.

Article 8.

1. The Ministry of Labor, Invalids and Social Affairs shall be responsible for:

a) Guide the implementation of the adjustment of retirement pay and social insurance benefits as prescribed in this Decree;

b) Propose the Government to continue adjusting the monthly retirement pay and social insurance benefits of the subjects stipulated in Article 1 of this Decree from October 1, 2005 to October 1, 2008.

2. The Ministry of Finance shall ensure the funding for adjusting retirement pay for those retiring, leaving work to receive disability benefits, including those receiving monthly benefits under Decision No. 91/2000/QĐ-TTg dated August 4, 2000, and rubber plantation workers' benefits before October 1, 1995.

3. The Vietnam Social Security shall ensure the funding for adjusting retirement pay for those retiring and providing benefits for village, town, and township cadres from October 1, 1995 onwards; organize guidance for local social security agencies to implement the adjustment of retirement pay and social insurance benefits and organize timely payment to the subjects in accordance with this Decree.

Article 9. The Ministers, Heads of ministerial-level agencies, Heads of agencies under the Government, Chairpersons of provincial people's committees, and chairpersons of municipal people's committees directly under the central government are responsible for implementing this Decree./.