JOINT CIRCULAR No. 223/TT-LB GUIDING THE IMPLEMENTATION OF RETIREMENT REGIME DUE TO ORGANIZATIONAL AND STAFF REORGANIZATION

CIRCULAR

OF THE ORGANIZATION AND STAFF BOARD OF THE GOVERNMENT - MINISTRY OF LABOR, WAR INVALIDS AND SOCIAL AFFAIRS - MINISTRY OF FINANCE

GUIDELINES FOR IMPLEMENTING RETIREMENT BENEFITS DUE TO REORGANIZATION OF ORGANIZATIONS AND PERSONNEL

Implementing Decree No. 29/CP dated May 8, 1996 of the Government on retirement benefits due to reorganization of organizations and personnel; the Joint Board of the Organization and Staff Office of the Government, Ministry of Labor, War Invalids and Social Affairs, and Ministry of Finance provide guidelines for implementing retirement benefits due to reorganization of organizations and personnel as follows:

I. SCOPE AND OBJECTS:

Civil servants elected or appointed to positions in Party organizations, People's Committees, and mass organizations at provincial and centrally-administered city levels; cities under provinces, districts, counties, and towns include the following positions:

a. Elected civil servants include:

- Chairperson, Vice-Chairperson of the People's Council;

- Chairperson, Vice-Chairperson of the People's Committee;

- Secretary of the People's Council.

- Specialized member of the Provincial People's Committee.

b. Appointed civil servants of Party organizations, People's Committees, and mass organizations include:

Party organization:

- Secretary, Deputy Secretary;

- Member of the Standing Committee;

- Director, Deputy Director, Member of the Inspection Committee;

- Head of Department;

- Secretary, Deputy Secretary of the Party Committee of the administrative unit.

People's Committee and mass organizations:

- Chairperson, Vice-Chairperson of the People's Committee;

- Chairperson, Vice-Chairperson, Secretary, Deputy Secretary of mass organizations;

- Member of the Standing Committee.

II. CONDITIONS FOR RECEIVING MONTHLY RETIREMENT BENEFITS:

The objects specified in Point I of this Circular, due to organizational and personnel reorganization in 1996, shall be entitled to monthly retirement benefits according to point a, Clause 1, Article 27 of the Social Insurance Charter issued together with Decree No. 12/CP dated January 26, 1995 of the Government if they meet one of the following conditions:

1. Male aged 55 years old, female aged 50 years old, and having contributed to social insurance for at least 20 years.

2. Male aged 50 years old, female aged 45 years old, and having contributed to social insurance for at least 20 years, during which period there must have been at least 15 years of work in one of the following situations:

a. Regularly working for 15 years in heavy, hazardous jobs, with breaks included in the calculation;

b. Regularly working for 15 years in areas with regional allowances of coefficient 0.7 or higher, with breaks included in the calculation;

c. Working for 10 years in the South before April 30, 1975, in Laos before August 31, 1989 (if working in two or three of these areas, the periods can be combined for calculation purposes).

If a person meets two or three of the situations mentioned in points a, b, and c, only the most advantageous situation will be considered for reducing the retirement age according to Clause 2, Article 1.

III. RIGHTS AND BENEFITS:

Those who meet the conditions stipulated above shall receive monthly pension according to point a, Clause 1, Article 27 of the Social Insurance Charter issued together with Decree No. 12/CP of the Government:

Monthly pension is calculated based on the number of years of social insurance contributions and the average monthly salary used as the basis for social insurance contributions as follows:

For workers who have contributed to social insurance for at least 15 years, the monthly pension is 45% of the average monthly salary used as the basis for social insurance contributions, with an additional 2% for each additional year of contribution. The maximum monthly pension is 75% of the average monthly salary used as the basis for social insurance contributions.

In addition to the monthly pension, those retiring under Decree No. 29/CP dated May 8, 1996 of the Government also enjoy rights and benefits as stipulated in Clauses 2, 3, and 4, Article 27 of the Social Insurance Charter issued together with Decree No. 12/CP of the Government.

IV. IMPLEMENTATION

This Circular takes effect from May 8, 1996 until December 31, 1996. Civil servants elected for the term 1989-1994 who now leave their elected positions due to organizational and personnel reorganization shall also follow the guidelines provided in this Circular.

Any issues encountered during implementation should be reported to the Joint Board for study and resolution./.