JOINT CIRCULAR OF THE MINISTRY OF LABOR, WAR INVALIDS AND SOCIAL AFFAIRS AND THE MINISTRY OF FINANCE NO. 21/2000/TTLT-BLDTBXH-BTC DATED SEPTEMBER 25, 2000 GUIDING THE SUBSIDY REGIME FOR THOSE WHO HAVE REACHED THE RETIREMENT AGE AT THE TIME OF STOPPING MONTHLY DISABILITY ALLOWANCE

JOINT CIRCULAR

Guidelines for subsidies for those who have reached retirement age at the time of

ceasing to receive monthly disability allowance

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Implementing Decision No. 91/2000/QĐ-TTg dated August 4, 2000 of the Prime Minister on subsidies for those who have reached retirement age at the time of ceasing to receive monthly disability allowance, the Ministry of Labor, Invalids and Social Affairs and the Ministry of Finance provide guidance as follows:

Production facilities under the Vietnam Import-Export Construction Corporation (Ministry of Construction) producing building components and materials for housing sold to households in flood-prone areas in the Mekong Delta on deferred payment terms (as per Decision No. 105/2002/QD-TTg dated August 2, 2002) and to ethnic minority households in place in the Central Highlands provinces on deferred payment terms (as per Announcement No. 144/TB-VPCP dated September 12, 2002 of the Government Office).

1- Individuals currently receiving monthly disability allowance with a fixed term as stipulated in Decision No. 60/HĐBT dated March 1, 1990 of the Council of Ministers (now the Government) who, at the time of ceasing to receive the allowance, have reached retirement age (males aged 60 or older, females aged 55 or older) and have at least 15 years of actual service (service years calculated according to the calendar, excluding additional years converted based on coefficients).

2- Individuals who ceased to receive monthly disability allowance as stipulated in Decision No. 60/HĐBT mentioned above during the period from July 1, 1990 to June 30, 2000, and were alive on July 1, 2000, and who, at the time of ceasing to receive the allowance, had reached retirement age (males aged 60 or older, females aged 55 or older) and have at least 15 years of actual service (service years calculated according to the calendar, excluding additional years converted based on coefficients).

Subsidies provided for in this Circular shall not be granted to individuals eligible to continue receiving monthly disability allowance as specified in Article 2 of Decision No. 60/HĐBT dated March 1, 1990 of the Council of Ministers (now the Government).

II- SUBSIDY AMOUNT AND METHOD OF RECEIVING SUBSIDY:

1- Subsidy amount: VND 100,000/month, uniformly applied to the subjects mentioned in points 1 and 2 of Section I above, without considering the previous disability allowance received.

In addition to the VND 100,000/month subsidy, beneficiaries also enjoy health insurance benefits as prescribed in Decree No. 58/1998/NĐ-CP dated August 13, 1998 of the Government. The health insurance contribution for each beneficiary is 3% of the minimum wage, guaranteed by the State budget through the Vietnam Social Security. Upon the death of a beneficiary, the person responsible for burial receives funeral expenses equivalent to eight months of the minimum wage, as stipulated in Article 31 of the Social Insurance Regulations promulgated together with Decree No. 12/CP dated January 26, 1995 of the Government.

2- Method of receiving subsidy

a- Individuals currently receiving monthly disability allowance are eligible to receive the subsidy when meeting the following two conditions:

- At the time of ceasing to receive monthly disability allowance, males are aged 60 or older, females are aged 55 or older.

- Have at least 15 years of actual service (calculated according to the calendar).

The start date for receiving the VND 100,000/month subsidy is calculated from the month of ceasing to receive monthly disability allowance as stipulated in Decision No. 60/HĐBT dated March 1, 1990 of the Council of Ministers (now the Government).

Example 1: Ms. Nguyen Thi A was born in September 1945, with 15 years of actual service (including 2 years converted based on coefficients, totaling 17 years). Ms. A stopped working and began receiving monthly disability allowance from March 1992, with an allowance period of 8 years and 6 months, and received her last monthly disability allowance of VND 190,000 in August 2000. According to Decision No. 60/HĐBT dated March 1, 1990, Ms. A ceased to receive monthly disability allowance in September 2000, but since she was already 55 years old at that time, she is entitled to receive a VND 100,000/month subsidy starting from September 2000.

Example 2: Mr. Tran Van B was born in April 1942, with 16 years of actual service (including 2 years and 6 months converted based on coefficients, totaling 18 years and 6 months). Mr. B stopped working and began receiving monthly disability allowance in June 1991, with an allowance period of 9 years and 3 months, and received his last monthly disability allowance in August 2000. At the cessation date in September 2000, Mr. B had not yet reached retirement age (58 years old), so he is not entitled to the VND 100,000/month subsidy.

Example 3Mr. Nguyen Van C was born in July 1940, with 15 years of actual service (no converted service time). Mr. C stopped working and began receiving monthly disability allowance from February 1993, with an allowance period of 7 years and 6 months, and received his last monthly disability allowance of VND 240,000 in July 2000. At the cessation date in August 2000, Mr. C had reached retirement age (60 years old), so he is entitled to receive a VND 100,000/month subsidy starting from August 2000.

Example 4: Ms. Bui Thi N was born in April 1944, with 14 years of actual service (including 1 year and 8 months converted based on coefficients, totaling 15 years and 8 months). Ms. N stopped working and began receiving monthly disability allowance from June 1993, with an allowance period of 7 years and 10 months, and received her last monthly disability allowance in March 2001. At the cessation date in April 2001, Ms. N had reached retirement age, but since she did not have at least 15 years of actual service, she is not entitled to the VND 100,000/month subsidy.

b- Individuals who ceased to receive monthly disability allowance between July 1, 1990 and June 30, 2000, and were alive on July 1, 2000, if they meet the conditions specified in subpoint a above, are eligible to receive the subsidy. The start date for receiving the subsidy is July 1, 2000.

Example 1: Mr. Nguyen Van D was born in May 1934, with 15 years of actual service (including 3 years converted, totaling 18 years). Mr. D stopped working and began receiving monthly disability allowance from May 1986, received his last monthly disability allowance of VND 170,000 in April 1994, and ceased to receive the allowance in May 1994 when he had reached retirement age (60 years old). On July 1, 2000, Mr. D was still alive.

Mr. D is eligible to receive the VND 100,000/month subsidy starting from July 1, 2000.

Example 2: Ms. Phan Thanh H was born in September 1940, with 15 years of actual work experience (including an additional 2 years converted according to a coefficient, totaling 17 years). Ms. H retired to receive monthly disability allowance from March 1986 for a period of 8 years and 6 months of allowance, receiving her last monthly allowance in August 1994 at a rate of 190,000 VND. In September 1994, when Ms. H stopped receiving the disability allowance, she had not yet reached retirement age (54 years old). As of July 1, 2000, Ms. H was still alive.

In the case of Ms. H, although she had 15 years of actual work experience, at the time she stopped receiving the disability allowance, she had not yet reached retirement age. Therefore, Ms. H did not meet the conditions to receive the allowance stipulated in Point 1 of this Section.

Example 3: Mr. Nguyen Van K was born in April 1936, with 13 years and 6 months of actual work experience (including an additional year and 10 months converted according to a coefficient, totaling 15 years and 4 months). Mr. K retired to receive monthly disability allowance from August 1989 for a period of 7 years and 2 months, receiving his last monthly disability allowance in September 1996. At the time he stopped receiving the disability allowance in October 1996, Mr. K had reached retirement age (60 years old). As of July 1, 2000, Mr. K was still alive.

In the case of Mr. K, although he had reached retirement age at the time he stopped receiving the disability allowance, his actual work experience was less than 15 years. Therefore, Mr. K did not meet the conditions to receive the allowance stipulated in Point 1 above.

III- DOCUMENTS AND PROCEDURES FOR REVIEWING ELIGIBILITY FOR ALLOWANCE:

1- The documents for receiving the allowance include:

- An application for allowance confirmed by the local authority where the applicant resides (for those who stopped receiving the disability allowance from July 1, 1990 to before July 1, 2000).

- Documents for receiving the disability allowance.

- Decision terminating the receipt of disability allowance.

- Decision of the Director of the Social Insurance Department of the province or centrally-administered city regarding allowances for those who have reached retirement age at the time they stopped receiving the monthly disability allowance.

2- Procedures for reviewing eligibility:

- For those currently receiving the monthly disability allowance, the Social Insurance Department of the province or centrally-administered city is responsible for reviewing the managed files, compiling a list of individuals meeting the conditions to receive the allowance stipulated in Section I of this Circular. The Director of the Social Insurance Department of the province or centrally-administered city will review and issue a decision adjusting the current disability allowance to a monthly allowance of 100,000 VND.

- For those who stopped receiving the monthly disability allowance between July 1, 1990 and before July 1, 2000, the Social Insurance Department of the district, county, or town will base their decisions on the termination of the allowance, compile a list of individuals still alive as of July 1, 2000, and review and compare the disability allowance files managed by the Social Insurance agency to accurately identify those eligible for the allowance. The Director of the Social Insurance Department of the province or centrally-administered city will review, issue a decision granting a monthly allowance of 100,000 VND to these individuals, and be responsible for these decisions.

IV- FUNDS TO ENSURE IMPLEMENTATION OF THE ALLOWANCE:

The funds to implement the allowance for the subjects specified in Section I of this Circular shall be guaranteed by the Central Budget through the Social Insurance agency.

V. IMPLEMENTATION

1- The People's Committee of the province or centrally-administered city under the Central Government shall direct all levels of government, the Department of Labor, Invalids, and Social Affairs, the Department of Finance and Prices, and related departments and agencies to inspect the implementation of Decision No. 91/2000/QĐ-TTg dated August 4, 2000 issued by the Prime Minister and this Circular at the local level.

2- The Ministry of Finance shall allocate funds from the Central Budget directly to the Vietnam Social Insurance based on the annual budget of the Vietnam Social Insurance for the subjects mentioned in Section I of this Circular.

3- The Vietnam Social Insurance shall organize the implementation and instruct the Social Insurance Departments of the provinces or centrally-administered cities to base on the managed disability allowance files to provide allowances to the subjects specified in this Circular; compile and report the number of recipients and the amount of funds disbursed (implemented by the Social Insurance Departments of the provinces or centrally-administered cities) to the Ministry of Labor, Invalids, and Social Affairs and the Ministry of Finance as the basis for allocating funds from the State Budget and annually settle accounts with the Ministry of Finance according to the current regulations.

4- The Department of Labor, Invalids, and Social Affairs shall cooperate with the Social Insurance Departments of the provinces or centrally-administered cities to submit to the People's Committee for consideration and decision on hardship allowances for those who have ceased receiving the monthly disability allowance but do not fall within the scope of the allowance stipulated in Points 1 and 2 of Section I of this Circular, when reaching retirement age (men aged 60 or older and women aged 55 or older) and facing significant difficulties in life. The level of hardship allowance shall be determined by the Chairman of the People's Committee of the province or centrally-administered city based on the financial balance of the locality.

This Circular takes effect from July 1, 2000. Those who meet the conditions to receive the allowance as stipulated in Subparagraph a and Subparagraph b of Point 2 of Section II above, if they receive the allowance late due to procedural delays, shall be entitled to back payment from the date they were entitled to receive the allowance according to this Circular.

During the implementation process, any issues should be reported to the Ministry of Labor, Invalids, and Social Affairs and the Ministry of Finance for resolution.