Joint Circular No. 270/2003/TTLT-BQP-BCA-BLDTBXH guiding the implementation of certain points of Government Decree No. 89/2003/NĐ-CP dated August 5, 2003 on amending and supplementing some articles of the Social Insurance Regulation for officers, professional soldiers, non-commissioned officers, and soldiers of the People's Army and police from the issuance of Government Decree No. 45/CP dated July 15, 1995.

JOINT CIRCULAR

Guidelines for Implementing Certain Points of Decree No. 89/2003/NĐ-CP dated August 5, 2003 of the Government on Amending and Supplementing Certain Provisions of the Social Insurance Regulations for Officers, Professional Soldiers, Non-Commissioned Officers, and Soldiers of the People's Army and Police issued together with Decree No. 45/CP dated July 15, 1995

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Implementing Decree No. 89/2003/NĐ-CP dated August 5, 2003 of the Government on Amending and Supplementing Certain Provisions of the Social Insurance Regulations (SIR) for officers, professional soldiers, non-commissioned officers, and soldiers of the People's Army and Police issued together with Decree No. 45/CP dated July 15, 1995 of the Government (referred to as the SIR for military personnel and police), following the unified opinion of the Ministry of Finance (in Circular No. 11265 TC/HCSN dated October 29, 2003), the Joint Ministry of National Defense - Public Security - Labor - Invalids and Social Affairs provides guidelines for implementing certain points as follows:

I. SOCIAL INSURANCE BENEFITS TO BE ENJOYED

1. The sick leave allowance as stipulated in Clause 1, Article 1 of Decree No. 89/2003/NĐ-CP is as follows:

Military personnel and police officers who have children (including adopted children under the provisions of the Marriage and Family Law) under seven years old suffering from illness, confirmed by a healthcare organization designated by the Ministry of Health, must take time off work to care for their sick child, shall be entitled to social insurance benefits. In cases where both parents participate in social insurance and the child is ill, only one parent may receive social insurance benefits during the period of taking time off work to care for the sick child. The maximum duration for receiving benefits to care for a sick child is as follows:

- 20 days within a year for children under three years old;

- 15 days within a year for children aged three to under seven years old.

2. The maternity leave allowance as stipulated in Clause 2, Article 1 of Decree No. 89/2003/NĐ-CP is as follows:

Female military personnel and female police officers who are pregnant or give birth (regardless of the number of births) shall enjoy maternity leave benefits according to the provisions of Articles 9 and 10 of the SIR for military personnel and police.

3. The method of calculating the percentage of monthly pension stipulated in Point 1, Clause 5, Article 1 of Decree No. 89/2003/NĐ-CP is as follows:

a) Male military personnel and police officers with at least 15 years of social insurance contributions shall be calculated at 45% of the average monthly salary used as the basis for social insurance contributions; thereafter, for each additional year beyond the 16th year, an additional 2% will be added. The maximum monthly pension rate shall be 75% of the average monthly salary used as the basis for social insurance contributions.

Example 1: Comrade Dang Van Trung, Major, has 27 years of service and retired in September 2003. The calculation of the percentage of his monthly pension is as follows:

+ 15 years: 45%.

+ From the 16th to the 27th year (12 years): 2% x 12 (years) = 24%.

+ The percentage for calculating Comrade Trung's monthly pension is:

45% + 24% = 69%

b) Female military personnel and police officers with at least 15 years of social insurance contributions shall be calculated at 45% of the average monthly salary used as the basis for social insurance contributions; thereafter, for each additional year beyond the 16th year, an additional 3% will be added. The maximum monthly pension rate shall be 75% of the average monthly salary used as the basis for social insurance contributions.

Example 2: Comrade Nguyen Thi Hoa, Captain, has 25 years of service and retired in March 2003. The calculation of the percentage of her monthly pension is as follows:

+ 15 years: 45%.

+ From the 16th to the 25th year (10 years): 3% x 10 (years) = 30%.

+ The percentage for calculating Comrade Hoa's monthly pension is:

45% + 30% = 75%.

4. The method of calculating a lower monthly pension stipulated in Point 2, Clause 5, Article 1 of Decree No. 89/2003/NĐ-CP is as follows:

a) Military personnel and police officers who receive a monthly retirement benefit at a lower rate as prescribed in Clauses 1 and 2 of Article 24 of the SIR for military personnel and police shall calculate their pension as prescribed in point 3 above, but for each year they retire before the age specified in Clauses 1, 2, and 3 of Article 23 of the SIR for military personnel and police, the average monthly salary used as the basis for social insurance contributions shall be reduced by 1%.

Example 3: Comrade Tran Van An, aged 51, has 26 years of social insurance contributions, does not meet the conditions for retirement as stipulated in Clause 4 of Article 23 of the SIR for military personnel and police, has a reduced ability to work by 61%, retired in July 2003. The calculation of the percentage of his monthly pension is as follows:

+ 26 years of social insurance contributions amount to 67%.

+ The percentage reduction due to retiring before the age of 55 as stipulated above:

(55 years - 51 years) x 1% = 4%

+ The percentage for calculating Comrade An's monthly pension is: 67% - 4% = 63%

b) Male military personnel and police officers aged 50 or older but under 55, and female military personnel and police officers aged 45 or older but under 50, with at least 30 years of social insurance contributions, shall receive a pension calculated as prescribed in point 3 above, but for each year they retire before the age specified in Clause 1 of Article 23 of the SIR for military personnel and police, there is no need to reduce 1% of the average monthly salary used as the basis for social insurance contributions.

Example 4: Comrade Tran Van Duy, Captain of the Police, has 50 years and 5 months of age and 30 years of social insurance contributions, retired in July 2003. The calculation of the percentage of his monthly pension is as follows:

+ 15 years of social insurance contributions amount to: 45%

+ From the 16th to the 30th year (15 years): 2% x 15 (years) = 30%

45% + 30% = 75%

+ According to the provision in sub-point b of point 4 above, Comrade Duy is not subject to a percentage reduction compared to the age of 55 stipulated in Clause 1 of Article 23 of the SIR for military personnel and police because he has accumulated at least 30 years of social insurance contributions. Therefore, the percentage for calculating Comrade Duy's monthly pension is 75%.

c) Military personnel and police officers who retire with a lower pension as stipulated in Clauses 1 and 2 of Article 24 of the SIR for military personnel and police, if they have a period of work prior to the implementation of the SIR that can be considered as having contributed to social insurance before the age of 16, then each year of work before the age of 16 shall be calculated at 2% for males and 3% for females of the average monthly salary used as the basis for social insurance contributions to offset the total percentage of the pension that must be reduced due to retiring before the age, but the maximum offset shall not exceed the percentage of the pension that must be reduced due to retiring before the age.

5. The method of calculating a one-time allowance upon retirement as stipulated in Point 3, Clause 5, Article 1 of Decree No. 89/2003/NĐ-CP is as follows:

In addition to the monthly pension, male military personnel and public security officers who have contributed to social insurance for over 30 years, and female military personnel and public security officers who have contributed for over 25 years, upon retirement shall be granted a one-time allowance calculated as follows: from the 31st year onwards for male military personnel and public security officers, and from the 26th year onwards for female military personnel and public security officers, each year of social insurance contribution entitles them to receive half (1/2) of a month's average salary used as the basis for social insurance contributions, but not exceeding five months in total.

Example 5: Comrade Do Thi Lien, Major, with 36 years of social insurance contributions, retired in June 2003; the one-time allowance upon retirement is calculated as follows:

From the 26th to the 36th year (11 years): 0.5 months' salary x 11 (years) = 5.5 months' salary, but the maximum is capped at 5 months; therefore, Comrade Lien is entitled to a one-time allowance equivalent to 5 months' average salary used as the basis for social insurance contributions.

6. The method of calculating the average monthly salary used as the basis for determining the pension as stipulated in Point 2, Clause 6, Article 1 of Decree No. 89/2003/NĐ-CP is as follows:

Military personnel and public security officers who have contributed to social insurance for at least 15 years under wage levels applicable to heavy, hazardous, or dangerous work or extremely heavy, hazardous, or dangerous work (as listed in the occupational classification issued by the Ministry of Labor, Invalids, and Social Affairs) and then transferred to other jobs with lower wages, if their average wage over the last five years before retirement is lower than the average wage over the continuous five years working in heavy, hazardous, or dangerous work, shall, upon retirement, base their pension calculation on the highest average wage contributions for the five consecutive years working in heavy, hazardous, or dangerous work.

Example 6: Comrade Nguyen Thi Duc has 25 years and 3 months of social insurance and military service, including 12 years of active service (12% seniority) and 15 years and 6 months in heavy, hazardous work (repairing weapons). She retired in August 2003 as a professional military officer and clerical staff. Comrade Duc's highest average wage contribution for the five consecutive years working in heavy, hazardous work was 1,050,000 VND, and her average wage contribution for the last five years before retirement was 920,000 VND. Therefore, Comrade Duc will base her pension calculation on the wage of 1,050,000 VND.

7. The method of calculating the average monthly salary used as the basis for determining the pension as stipulated in Point 3, Clause 6, Article 1 of Decree No. 89/2003/NĐ-CP is as follows:

Public security officers who have at least 20 years of seniority and, upon organizational request, transfer to work in Party, State, or mass organizations outside the public security force, if their retirement wage is lower than their active-duty wage, shall base their pension calculation on the average wage contribution for the last five years before transferring out of the public security force.

Example 7: Comrade Pham Van Dai, Lieutenant Colonel, has 22 years of seniority and transferred to work in the Inspection Department of Ha Tay Province in 1993. His average wage for the last five years before transferring was 1,700,000 VND/month (calculated based on the minimum wage at the time of receiving social insurance benefits). He retired in November 2003, and his average wage for the last five years before retirement was 1,550,000 VND/month. According to the above regulation, the wage of 1,700,000 VND/month will be used as the basis for calculating Comrade Dai's pension.

8. The method of calculating the average monthly salary used as the basis for determining the pension as stipulated in Point 4, Clause 6, Article 1 of Decree No. 89/2003/NĐ-CP is as follows:

Public security officers who have between 15 and less than 20 years of seniority and are transferred to work in Party, State, or mass organizations outside the public security force, or those who have at least 20 years of seniority and voluntarily transfer to work outside the public security force with a wage under the State sector, if their average wage for the last five years before retirement is lower than their average wage for the last five years while serving, shall base their pension calculation on the average wage contribution for ten years of social insurance, including the last five years before transferring out of the public security force plus the last five years before retirement.

Example 8: Comrade Nguyen Van Phong, former Major, has 21 years of seniority and an average wage for the last five years before transferring out of the public security force of 1,456,000 VND/month (converted based on the minimum wage at the time of receiving social insurance benefits). In June 1996, he voluntarily transferred to work at the Industry Department of Hanoi City. By October 2003, he met the conditions for monthly retirement benefits according to the Social Insurance Regulations issued with Decision No. 12/CP dated January 26, 1995, with an average wage contribution for the last five years before retirement of 1,000,000 VND/month. According to the above regulation, the wage for calculating Comrade Phong's pension is:

(1,456,000 VND + 1,000,000 VND) / 2 = 1,228,000 VND/month.

9. For military personnel and public security officers receiving pensions as stipulated in Point 6, Clause 6, Article 1 of Decree No. 89/2003/NĐ-CP:

Those who are entitled to a pension as stipulated in Points 6, 7, and 8 above shall not be entitled to the monthly allowance as provided in Article 3 of Decision No. 812/TTg dated December 12, 1995, of the Prime Minister, specifically: Upon retirement, they shall not be entitled to additional monthly allowances based on active service years (for military personnel) or seniority (for public security officers) and the minimum wage at the time of retirement.

10. For military personnel and public security officers who have contributed to social insurance for at least 20 years when demobilized or discharged as stipulated in Point 1, Clause 7, Article 1 of Decree No. 89/2003/NĐ-CP:

Military personnel when demobilized (including those demobilized within one year) and public security officers when discharged, having contributed to social insurance for at least 20 years but not meeting the conditions for retirement benefits as stipulated in Article 23 or Clauses 1 and 2 of Article 24 of the Social Insurance Regulations for military personnel and public security officers, may choose one of the three methods specified in Subparagraphs a, b, and c below:

a) Demobilization (for military personnel) or discharge (for public security officers): Military personnel and public security officers receiving a demobilization or discharge allowance from the social insurance fund shall be entitled to a demobilization allowance calculated as follows:

'Demobilization Allowance = Number of years of service counted towards active service x 1.5 months' salary.

In cases where there has been continuous work experience including time as workers or civil servants, such time shall be counted for retirement benefits as if the individual were a worker or civil servant leaving their job: for each year of work, one month's salary shall be received.

b) Retirement benefit waiting period until reaching the age to receive monthly pension: The Military Social Insurance Agency or Public Security Social Insurance Agency shall establish a waiting-for-retirement file, which must include a voluntary application from the individual and confirmation from the competent authority.

b1) During the waiting period until reaching the age to receive monthly pension, the individual does not receive salary or social insurance benefits but manages their own social insurance record.

b2) Military personnel and public security officers who have worked for twenty years under normal conditions shall wait until they reach fifty-five years old for males and fifty years old for females.

Military personnel and public security officers who have contributed to social insurance for twenty years, including at least fifteen years in hazardous occupations, or fifteen years working in areas with regional allowances of 0.7 or higher, or ten years in combat zones B, C, K, or international missions, shall wait until they reach fifty years old for males and forty-five years old for females.

b3) During the waiting period, if they continue to work in positions required to participate in mandatory social insurance, they shall continue to contribute to social insurance; the subsequent contribution period shall be added to the previous contribution period to calculate future social insurance benefits and shall be entitled to social insurance benefits as prescribed in Decree No. 12/CP dated January 26, 1995 and Decree No. 01/2003/NĐ-CP dated January 9, 2003 of the Government.

b4) During the waiting period, if they fall ill or suffer an accident resulting in reduced health, they may submit an application to the provincial social insurance agency (referred to as the provincial social insurance agency) where they reside to request a health assessment; if their labor capacity is reduced by 61% or more and meets the conditions stipulated in Clauses 1 and 2 of Article 24 of the Social Insurance Charter for military personnel and public security officers, the Director of the provincial social insurance agency shall issue a decision to receive monthly pension benefits at the lower rate specified in the Social Insurance Charter for military personnel and public security officers; the pension payment period begins from the month following the month when the medical examination results are available.

b5) During the waiting period, if they die without continuing to participate in social insurance, they shall be entitled to the death benefit as prescribed in Section V of the Social Insurance Charter for military personnel and public security officers, calculated based on the minimum wage level at the time of death; the process of establishing a claim for death benefits and paying funeral expenses, lump-sum or monthly survivor benefits shall be handled by the provincial social insurance agency where the military personnel or public security officer resides legally.

c) Preservation of social insurance contribution period: Military personnel and public security officers who voluntarily apply to preserve their social insurance contribution period and not receive a one-time benefit from the social insurance fund, with confirmation from the head of the competent unit, shall have their contribution period and contribution level recorded on their social insurance record by the Military Social Insurance Agency or Public Security Social Insurance Agency.

c1) During the preservation period, if they do not continue to participate in social insurance, they do not receive salary or social insurance benefits but manage their own social insurance record.

c2) During the preservation period, if they continue to work in positions required to participate in mandatory social insurance, they shall continue to contribute to social insurance; the subsequent contribution period shall be added to the previous contribution period to calculate future social insurance benefits and shall be entitled to social insurance benefits as prescribed in Decree No. 12/CP and Decree No. 01/2003/NĐ-CP.

c3) If they do not continue to participate in social insurance and fall ill or suffer an accident resulting in reduced health, they may submit an application to the provincial social insurance agency where they reside legally to request a health assessment; if their labor capacity is reduced by 61% or more and meets the conditions stipulated in Clauses 1 and 2 of Article 24 of the Social Insurance Charter for military personnel and public security officers, the Director of the provincial social insurance agency shall issue a decision to receive monthly pension benefits at the lower rate specified in the Social Insurance Charter for military personnel and public security officers; the pension payment period begins from the month following the month when the medical examination results are available.

c4) If they do not participate in social insurance and reach the required age, they may submit an application along with their social insurance record to the provincial social insurance agency where they reside legally; the Director of the provincial social insurance agency shall issue a decision to receive monthly pension benefits as prescribed in Clauses 1 and 2 of Article 23 of the Social Insurance Charter for military personnel and public security officers.

c5) If they do not continue to participate in social insurance and die, their dependents shall be entitled to the death benefit as prescribed in Section V of the Social Insurance Charter for military personnel and public security officers, calculated based on the minimum wage level at the time of death; the process of establishing a claim for death benefits and paying funeral expenses, lump-sum or monthly survivor benefits shall be handled by the provincial social insurance agency where the military personnel or public security officer resides legally.

11. For military personnel discharged from service and public security officers demobilized before reaching the required age and social insurance contribution period to receive the retirement benefits as stipulated in Point 2, Clause 7, Article 1 of Decree No. 89/2003/NĐ-CP:

If military personnel and public security officers wish to preserve their social insurance contribution period before discharge or demobilization, they must submit a voluntary application confirmed by the unit head; the Military Social Insurance Agency or Public Security Social Insurance Agency shall record the contribution period and level on their social insurance record to facilitate future contributions when conditions permit.

a) After discharge or demobilization, if they continue to participate in social insurance, the subsequent contribution period shall be added to the previous contribution period to calculate future social insurance benefits and shall be entitled to social insurance benefits as prescribed in Decree No. 12/CP and Decree No. 01/2003/NĐ-CP.

b) If they are discharged or demobilized and do not continue to participate in social insurance within six months or wish to receive a benefit from the social insurance fund due to illness, the Director of the provincial social insurance agency shall issue a decision to pay the discharge or demobilization benefit as prescribed in Decision No. 595/TTg dated December 15, 1993 of the Prime Minister, calculated based on the minimum wage level at the time of receiving the benefit.

c) If they do not continue to participate in social insurance and die, their dependents shall be entitled to the death benefit as prescribed in Section V of the Social Insurance Charter for military personnel and public security officers, calculated based on the minimum wage level at the time of death, handled by the provincial social insurance agency where the military personnel or public security officer resides legally.

12. The calculation of the one-time pension benefit prescribed in Clause 8, Article 1 of Decree No. 89/2003/NĐ-CP:

The amount of the one-time pension for the families of military personnel and police officers on active duty (including the cases stipulated in Article 27 of the Social Insurance Regulations for Military Personnel and Police Officers) who die shall be calculated based on the time they have contributed to social insurance, with each year being equivalent to half (1/2) month of the average monthly salary used as the basis for social insurance contributions in the last five years before death, as prescribed in Article 26 of the Social Insurance Regulations for Military Personnel and Police Officers, but not exceeding a maximum of 12 months. For military personnel and police officers receiving subsistence allowances, it shall be calculated at a rate of two times the minimum wage per month. The lowest one-time pension benefit for military personnel and police officers shall be six months of the minimum wage.

Example 9: Mr. Nguyen Van Anh joined the military in February 1998 and died on February 16, 2003, with a total of 5 years and 1 month of social insurance contributions, and an average monthly salary in the last five years of 622,533 VND.

The one-time pension benefit is calculated as follows: 622,533 VND x 0.5 (month of salary) x 5 (years) = 1,556,332 VND (a fraction of a month is not counted), which is lower than six months of the minimum wage, which is 290,000 VND x 6 (months) = 1,740,000 VND. According to the above regulations, Mr. Anh's family will receive a one-time pension benefit of 1,740,000 VND.

13. The method of calculating social insurance contribution periods with fractional months for resolving benefits prescribed in Clause 9, Article 1 of Decree No. 89/2003/NĐ-CP:

a) When there are fractional months in the social insurance contribution period, the percentage of the retirement pension and one-time benefit upon retirement, and the one-time pension benefit shall be calculated as follows: less than three months of contributions are not counted, from three to six months inclusive, the calculation is half (1/2) of the benefit of one year of contributions; from seven to less than twelve months, the full benefit of one year of contributions is counted.

Example 10: Ms. Do Thi Xuan, Major, has 23 years and 4 months of service and retired in May 2003. The calculation of the monthly retirement pension percentage for Ms. Xuan is as follows:

- Fifteen years entitle her to 45%.

- From the sixteenth to the twenty-third year (eight years), an additional 3% per year:

3% x 8 (years) = 24%.

- Four fractional months are counted as an additional 3% x 0.5 (year) = 1.5%.

- In total, the percentage for calculating Ms. Xuan's monthly retirement pension is:

45% + 24% + 1,5% = 70,5%

Example 11: Mr. Tran Van Nhan, Senior Colonel of the People's Police, has 30 years and 6 months of service and received retirement benefits from April 2003. Mr. Nhan receives a monthly retirement pension percentage of 75% and a one-time benefit due to six fractional months (of the thirty-first year) as follows:

0.5 month of salary x 0.5 (year) = 0.25 month of the average salary of the last five years.

Example 12: Mr. Phan Van Truong, Major, has 13 years and 8 months of social insurance contributions, died on January 20, 2003, with an average monthly salary for the last five years of social insurance contributions of 1,100,000 VND. The calculation of the one-time pension benefit for Mr. Truong's family is as follows:

- Thirteen years of social insurance contributions:

0.5 month of salary x 13 (years) = 6.5 months of salary.

- Eight fractional months are counted as the benefit of one year: an additional 0.5 month of salary.

- In total, Mr. Truong's family receives seven months of the average salary of the last five years (6.5 months of salary + 0.5 month of salary):

1,100,000 VND x 7 (months) = 7,700,000 VND.

b) When determining the social insurance contribution period to calculate the retirement benefit (as stipulated in Articles 23 and 24 of the Social Insurance Regulations for Military Personnel and Police Officers), one year must be counted as twelve months. If the social insurance contribution period is still short by a maximum of six months and the military personnel or police officer wishes to receive a monthly retirement benefit, they may continue to contribute to social insurance once more with the Military Social Insurance or Police Social Insurance for the remaining months, with a monthly contribution rate of 15% of their last month's salary before retirement, and receive the retirement pension from the month following the completion of the required contribution period, as decided by the Director of the Military Social Insurance or Police Social Insurance. Specifically, collecting social insurance contributions to resolve retirement benefits for the following groups:

b1) Military personnel and police officers who are 55 years old for men and 50 years old for women but are still short by a maximum of six months and have contributed to social insurance for 20 years.

b2) Military personnel and police officers who are 50 years old for men and 45 years old for women, and have worked in heavy, hazardous, or dangerous jobs or in areas with a regional coefficient of 0.7 or higher for 15 years, or have served in battlefields B, C, or K for 10 years, but are still short by a maximum of six months and have contributed to social insurance for 20 years.

b3) Police officers who are 50 years old for men and 45 years old for women but are still short by a maximum of six months and have served for 30 years for men and 25 years for women.

b4) Military personnel who have served for at least five years in the military (regardless of age) but are still short by a maximum of six months and have served in the military for 25 years for men and 20 years for women.

b5) Military personnel and police officers who are 50 years old for men and 45 years old for women, have a reduced work capacity of 61% or more, but are still short by a maximum of six months and have contributed to social insurance for 20 years.

b6) Military personnel and police officers who have worked in particularly heavy, hazardous, or dangerous jobs for 15 years, have a reduced work capacity of 61% or more, regardless of age, but are still short by a maximum of six months and have contributed to social insurance for 20 years.

b7) Military personnel and police officers who are 60 years old for men and 55 years old for women but are still short by a maximum of six months and have contributed to social insurance for 15 years.

Example 13: Ms. Hoang Thi Hai, Major, born in February 1954, started contributing to social insurance in August 1983. Due to health reasons (reduced work capacity of 69%), she was discharged in March 2003 (salary paid until February 2003). Comparing with clause b.5 above, Ms. Hai is still short of five months of social insurance contributions to meet the conditions for receiving a monthly retirement benefit at a low pension level. If Ms. Hai voluntarily (with a request letter and confirmation from her unit) continues to contribute 15% of the five months' shortfall to the Military Social Insurance, the Director of the Military Social Insurance will issue a decision to receive the retirement pension from August 2003 (the month following the completion of the required contribution period of 20 years).

c) When determining the time of social insurance contributions for calculating monthly survivor benefits, one year must be counted as 12 months. If the time of social insurance contributions is still lacking a maximum of up to six months and the dependents wish to receive monthly survivor benefits, the dependents must make additional social insurance contributions once for the remaining months at a monthly contribution rate of 15% of the last month's salary before the military personnel or public security officer died; the monthly survivor benefit will be received from the month following the month when the full contribution period is calculated, as decided by the Director of the Military Social Insurance or Public Security Social Insurance.

Example 14: Mr. Duong Van Loc, a lieutenant of the public security force, started contributing to social insurance in June 1998; he fell ill and died in February 2003 (with 14 years and 9 months of contributions), his father, aged 63, mother, aged 53, wife, a civil servant working in Hanoi, and a daughter aged 10. If the family of Mr. Loc wishes to receive monthly survivor benefits (with a request letter and confirmation from the People's Committee of the commune or ward), then the dependents of Mr. Loc must contribute an additional 15% of the 3 months still lacking to the Public Security Social Insurance and the unit where Mr. Loc worked will prepare the file to transfer to the Public Security Social Insurance for the decision on receiving monthly survivor benefits. The local social insurances where Mr. Loc’s parents, wife, and daughter reside will pay the monthly survivor benefits starting from June 2003 (the month following the month when the full contribution period of 15 years is calculated).

14. The basis salary for social insurance contributions and the responsibility for such contributions as stipulated in Point 1 Clause 11 Article 1 of Decree No. 89/2003/ND-CP:

a) The monthly salary serving as the basis for social insurance contributions for military personnel and public security officers includes rank salary or grade salary, seniority allowance, position allowance, regional allowance, hardship allowance, and retention coefficient (if any); military personnel and public security officers contribute 5%, while employers contribute 15% to the Military Social Insurance or Public Security Social Insurance.

Example 15: Comrade Huynh Van Dung, a major with a rank salary coefficient of 5.30, as of March 2003 has 28 years and 4 months of service (seniority allowance of 28%), currently Deputy General Director of Joint Venture Company X of a military enterprise with foreign partners, with a position allowance equivalent to a coefficient of 0.5; the current monthly salary at the joint venture is 1,000 USD. The Military Social Insurance collects 20% (5% from Comrade Dung and 15% from the joint venture company) each month to settle social insurance benefits for Comrade Dung and record the social insurance book according to the following salary level:

- Rank salary: 290,000 VND x 5.30 = 1,537,000 VND

- Seniority allowance: 1,537,000 VND x 0.28 = 430,360 VND

- Position allowance: 290,000 VND x 0.5 = 145,000 VND

Total: = 2,112,360 VND/month

The social insurance contribution amount is: 2,112,360 VND x (5% + 15%) = 422,472 VND/month

b) For military personnel and public security officers working in enterprises where both the employer and the individual have made social insurance contributions prior to the issuance of this circular but not in accordance with paragraph a above and have not yet enjoyed social insurance benefits, the following shall apply:

b1) The entire period of contributions and the contribution levels not in accordance with paragraph a above to the Social Insurance of the Ministry of National Defense, the Ministry of Public Security, or the Social Insurance of the provinces, shall be confirmed on the social insurance book of each person by the provincial social insurance and accompanied by a letter and list sent to the Military Social Insurance or Public Security Social Insurance; if the military personnel or public security officers have not been issued a social insurance book, the provincial social insurance shall provide a confirmation of the contribution period and level based on the enterprise (or joint venture) salary for each person and transfer it to the Military Social Insurance or Public Security Social Insurance as the basis for back payment or refund of social insurance and establishment of the social insurance book.

b2) Based on the social insurance contribution level according to the salary in enterprises, joint ventures, the Social Insurance of the Ministry of National Defense, the Ministry of Public Security shall issue a decision to refund the difference of 5% (the portion contributed by the employee) between the enterprise or joint venture salary and the rank salary, grade salary, seniority allowance, regional allowance, and position allowance for cases where the enterprise or joint venture salary is higher than the rank salary, grade salary, seniority allowance, regional allowance, and position allowance.

b3) Based on the social insurance contribution level according to the salary in enterprises, joint ventures, the Social Insurance of the Ministry of National Defense, the Ministry of Public Security shall issue a decision to collect the difference of 5% (the portion contributed by the employee) between the rank salary, grade salary, seniority allowance, regional allowance, and position allowance and the enterprise or joint venture salary for cases where the rank salary, grade salary, seniority allowance, regional allowance, and position allowance are higher than the enterprise or joint venture salary.

b4) The amount of refund or collection is calculated based on the minimum wage and the exchange rate of the Vietnamese Dong to USD at the time of refund or collection. The stages of social insurance contributions only change when there is a change in one of the two factors: the rank salary of military personnel or public security officers, or the salary paid by the enterprise or joint venture. The seniority allowance is calculated based on the last point in time when there is a change in one of the two factors mentioned above.

b5) There will be no refund or collection of the social insurance contribution portion paid by the employer (15%).

b6) For military personnel and public security officers, the implementation of social insurance contributions before the issuance of this circular and the refund or collection of the difference as stipulated in this circular (if applicable) must be fully reflected in the social insurance book.

Example 16: Comrade Do Van Guang joined the military in July 1979, was promoted to Major in August 1997 with a rank salary coefficient of 4.80, and was concurrently appointed Deputy General Director of Joint Venture Y of a military enterprise with foreign partners with a fixed salary of 800 USD/month (this position is equivalent to a coefficient of 0.4); in October 2000, the military issued a decision to increase the Major's rank salary coefficient to 5.05. From August 1997 to March 2003, Comrade Guang and the joint venture both contributed to social insurance at a rate of 800 USD/month with the Hanoi Social Insurance, which has issued a complete social insurance book confirming the contribution level and period until March 2003.

The Military Social Insurance will base its calculation of the refund for Comrade Guang on the confirmation from the Hanoi Social Insurance as follows:

- From August 1997 to March 2003, totaling 68 months, social insurance contributions were made at a rate of 800 USD/month (using the VND/USD exchange rate in December 2003, the time of the refund decision):

15,500 VND x 800 (USD) x 68 (months) x 5% = 42,160,000 VND.

- From August 1997 to March 2003, the social insurance contributions should have been made based on the rank salary, seniority allowance, and position allowance as follows:

From August 1997 to September 2000, for 38 months, the salary coefficient was 4.80, seniority allowance was 21%, position allowance was 0.40, minimum wage was 290,000 VND; (at the time the Decision on retroactive payment was issued):

(290,000 VND x 4.80 x 1.21 + 290,000 VND x 0.4) x 38 (months) x 5% = 3,420,608 VND

From October 2000 to March 2003, for 30 months, the salary coefficient was 5.05, seniority allowance was 23%, position allowance was 0.4, minimum wage was 290,000 VND.

(290,000 VND x 5.05 x 1.23 + 290,000 VND x 0.4) x 30 (months) x 5% = 2,876,002 VND.

Total: 3,420,608 VND + 2,876,002 VND = 6,296,610 VND

The Social Insurance of the Military issued a Decision to retroactively pay Mr. Quang a difference amount of:

42,160,000 VND - 6,296,610 VND = 35,863,390 VND.

Example 17: Mr. Tran Van Hung joined the military in September 1997, in September 1994 he was a lieutenant colonel with a salary coefficient of 4.80, in June 1995 he was transferred to work as Deputy Director of Joint Venture A of a military enterprise with foreign countries (equivalent to a position with a coefficient of 0.4) at a rate of 600 USD per month, but from June 1995 to December 2000, he paid social insurance in Dong Nai Province at a rate determined according to the coefficient of 3.80 based on the minimum wage, from January 2001, he paid social insurance according to his rank and seniority allowances, position allowances, and has been issued a social insurance book by the Social Insurance of Dong Nai Province, clearly confirming the contribution level and period of social insurance as stated above.

The Social Insurance of the Military bases its calculation of the retroactive collection of the 5% social insurance difference for Mr. Hung on the confirmation of the Social Insurance of Dong Nai Province as follows:

From June 1995 to December 2000 (67 months), social insurance contributions were made according to the determined salary level with a coefficient of 3.80:

290,000 VND x 3.80 x 67 (months) x 5% = 3,961,700 VND

From June 1995 to December 2000 (67 months), calculating social insurance contributions according to the rank and seniority allowance with a position coefficient of 0.40 and seniority allowance of 23%:

* Social insurance contributions according to rank and seniority allowance:

290,000 VND x 4.80 x 1.23 x 67 (months) x 5% = 5,735,736 VND.

* Social insurance contributions according to position allowance:

290,000 VND x 0.4 x 67 (months) x 5% = 388,600 VND

Total: 5,735,736 VND + 388,600 VND = 6,124,336 VND.

The Social Insurance of the Military issued a Decision to retroactively collect a difference amount from Mr. Hung as follows:

6,124,336 VND - 3,961,700 VND = 2,423,636 VND

15. Calculation of social insurance benefits for military personnel and public security officers during maternity leave as stipulated in Point 2, Clause 11, Article 1 of Decree No. 89/2003/NĐ-CP:

The time female military personnel and female public security officers take off work before and after giving birth and the time military personnel and public security officers take off work to care for newborn adopted children shall be counted as the time for social insurance contributions to enjoy social insurance benefits. During this period, the Ministry of National Defense and the Ministry of Public Security do not have to contribute 15% of their salaries to the social insurance fund, while military personnel and public security officers do not have to contribute 5% of their salaries to the social insurance fund, which will be covered by the social insurance fund. This period includes:

a) The time female military personnel and public security officers receive wages during maternity leave for up to five or six months and additional leave due to multiple births as stipulated in Clauses 1 and 2 of Article 10 of the Social Insurance Regulations for Military Personnel and Public Security Officers.

b) The time military personnel and public security officers receive wages during leave to care for newborn adopted children as stipulated in Article 11 of the Social Insurance Regulations for Military Personnel and Public Security Officers.

The provisions above do not apply to cases where additional leave exceeds the prescribed period as stipulated in Clauses 1 and 2 of Article 10 of the Social Insurance Regulations for Military Personnel and Public Security Officers.

II. IMPLEMENTATION PROVISIONS

This Circular takes effect 15 days after its publication in the Official Gazette. The social insurance systems set forth in this Circular shall be applied from January 1, 2003.

Military personnel and public security officers who enjoy social insurance from January 1, 2003 onwards and have not yet been implemented according to Decree No. 89/2003/NĐ-CP and this Circular shall have the Social Insurance of the Ministry of National Defense and the Ministry of Public Security responsible for paying the remaining difference of one-time allowances to the beneficiaries; the Social Insurances of provinces and centrally-administered cities shall adjust pensions for the beneficiaries and report to the Vietnam Social Insurance.

2. No adjustment shall be made for cases that have enjoyed social insurance benefits from December 31, 2002 or earlier.

3. This Circular abolishes:

a) The following contents of Circular No. 29/TT-LB dated November 2, 1995, jointly issued by the Ministries of Labor, War Invalids and Social Affairs, National Defense, and Interior guiding certain provisions to implement the Social Insurance Regulations for Military Personnel and Public Security Officers promulgated together with Decree No. 45/CP dated July 15, 1995 of the Government:

- Point 1, Section II, Part B.

- Point 3, Section IV, Part B.

- Point 3, Section IV, Part B.

- Point 7, Section V, Part B.

b) Circular No. 05/2000/TTLT-BLĐTBXH-BQP-BCA dated February 18, 2000, jointly issued by the Ministries of Labor, War Invalids and Social Affairs, National Defense, and Public Security guiding the implementation of Decree No. 94/1999/NĐ-CP dated September 8, 1999 of the Government amending and supplementing certain provisions of the Social Insurance Regulations for Military Personnel and Public Security Officers promulgated together with Decree No. 45/CP dated July 15, 1995 of the Government.

In the process of implementing these regulations, if there are any difficulties, units should report them to the Joint Ministries of National Defense, Public Security, Labor, War Invalids and Social Affairs for consideration and resolution./.