JOINT CIRCULAR No. 29/TT-LB GUIDING TEMPORARILY THE ISSUANCE AND MANAGEMENT OF PENSION AND SOCIAL ASSISTANCE BENEFITS

CIRCULAR

GUIDELINES FOR TEMPORARY ISSUES REGARDING THE DISTRIBUTION AND MANAGEMENT OF PENSION AND SOCIAL ASSISTANCE BENEFITS

JOINT MINISTRY OF FINANCE - LABOR - WAR INVALIDS AND SOCIAL AFFAIRS

In order to link the collection of the Social Insurance Fund with the payment of pensions and social assistance for war invalids at the local level, and to enhance the responsibility of local authorities towards beneficiaries of war invalids' policies; based on the directives of the Chairman of the Council of Ministers, the Joint Ministry of Finance - Labor - War Invalids and Social Affairs hereby provides temporary guidelines for the distribution, management, and payment of pensions and social assistance for war invalids as follows:

I. GENERAL PRINCIPLES

1. To ensure timely funding for the payment of pensions and social assistance to social policy beneficiaries in the locality, from now on, the financial resources allocated from the central budget to ensure this purpose will be transferred by the Ministry of Finance directly through the KBNN system in the form of "delegated funds from the central budget" to the provincial Departments of Finance (or Departments of Finance and Prices) for management and distribution to the local Department of Labor - War Invalids and Social Affairs to organize the payment of pensions and social assistance for war invalids. This fund will not be decentralized to the locality but will be guaranteed by the State Budget.

2. Annually, based on reviewing the plans for collecting and spending the Social Insurance Fund and social assistance for war invalids in each locality, the Ministry of Finance together with the Ministry of Labor - War Invalids and Social Affairs will determine the plan for collecting the Social Insurance Fund and spending on pensions and social assistance for war invalids for the entire sector and each locality nationwide, to be compiled into the state budget and submitted to the Council of Ministers for approval by the National Assembly. Based on this, the amount of central budget funds transferred to the localities (the difference between revenue and expenditure) to ensure sufficient funding for social insurance payments will be determined.

In cases where localities face difficulties in collecting funds to make payments, the Chairman of the Provincial People's Committee shall promptly report to the Ministry of Finance for appropriate measures to ensure timely payment of pensions and social assistance for war invalids.

3. With the central budget funds transferred plus the local Social Insurance Fund revenue (8%), the Department of Finance will transfer funds to the Department of Labor - War Invalids and Social Affairs to distribute to district and county labor - war invalids and social affairs agencies, or if agreed upon by the Department of Labor - War Invalids and Social Affairs, the Department of Finance (based on the social insurance revenue and expenditure plan for each district and county that has been mutually agreed upon) may directly transfer funds through the KBNN system to district and county labor - war invalids and social affairs agencies to ensure the payment of pensions and social assistance for war invalids within their respective districts and counties.

The local Department of Labor - War Invalids and Social Affairs is responsible for: preparing plans for collecting 8% of the Social Insurance Fund, plans for spending on pensions and social assistance for war invalids, and submitting them to the finance department at the same level; organizing direct payments to beneficiaries of social insurance policies, and preparing final reports on war invalids and social affairs expenses according to current regulations to be reviewed and consolidated into the state budget settlement by the finance department.

II. CONTENT OF EXPENSES FOR PENSIONS AND SOCIAL ASSISTANCE FOR WAR INVALIDS

1. The delegated funds from the central budget transferred to the locality through the Department of Finance, combined with the local Social Insurance Fund revenue (8%), are used to pay benefits to individuals according to national policies and specific items as follows:

- Pension expenses: including initial benefit payments and regular monthly pension payments for retired cadres, civil servants, workers, and military personnel.

- Expenses for loss of working capacity and work-related accidents: including initial or one-time payments and regular monthly payments for cadres, civil servants, and workers who have left their jobs due to loss of working capacity (including rubber industry workers).

- Disability benefits for war invalids and disabled veterans: including regular monthly disability benefits, support services for severely injured war invalids and disabled veterans, and other benefits for war invalids and disabled veterans as stipulated under the central budget allocation.

- One-time benefits for demobilized military personnel returning to their home regions (excluding funds already provided by the military).

- Benefits for veteran cadres and those who have contributed to the revolution: including preferential benefits and regular monthly living allowances.

- Funeral and bereavement benefits: including initial and one-time payments, and regular monthly payments (commonly known as烈士抚恤金和牺牲的工人职员遗属抚恤金)。

- Costs for exhumation, relocation, and reburial of martyrs' graves as specified in the prescribed standards.

- Management fees and other costs as specified in the prescribed standards, funded from the central budget.

2. Additionally, expenditures for war invalids and social affairs at the local level that do not fall under the delegated funds from the central budget transferred to the locality include:

- Supplementary expenditures for war invalids and social affairs beneficiaries as stipulated by local people's committees at various levels beyond the general national policies (if applicable), such as price subsidies, holiday gifts, additional assistance to families of war invalids and martyrs, etc. These expenditures are to be covered by the local budget and cannot be deducted from the centrally adjusted budget or requested as supplementary funding from the central budget.

- Expenditures for facilities and social welfare recipients managed by the locality.

- Expenditures for administrative operations, procurement, and maintenance of facilities for war invalids and disabled veterans managed by the locality.

3. The central budget directly allocates funds to the Ministry of Labor - War Invalids and Social Affairs, including expenditures for facilities under the management of the Ministry of Labor - War Invalids and Social Affairs, such as:

- Expenditures for rehabilitation centers.

- Expenditures for facilities caring for war invalids and disabled veterans, special beneficiaries of social policies, and children of martyrs.

- Other expenses.

For some expenses currently directly paid by the Ministry of Labor, Invalids, and Social Affairs such as pension payments, wheelchair distribution, and other orthopedic devices (if applicable), these will now be transferred to the People's Committee of Labor, Invalids, and Social Affairs at the local level to prepare budgets for direct payment of costs to beneficiaries.

III. ESTABLISHING AND REVIEWING BUDGETS, DISTRIBUTION, SETTLING ACCOUNTS FOR SOCIAL WELFARE EXPENSES

1. The establishment and review of plans for social insurance fund revenue collection and budget for invalids and social welfare by local labor, invalids, and social affairs agencies shall continue to be implemented according to current guidelines issued by the Ministry of Labor, Invalids, and Social Affairs.

a. The plan for collecting the social insurance fund (8% of total salary fund) and organizing collection at the local level shall continue to be carried out as directed in Circular No. 22/TT-LB dated June 16, 1989, jointly issued by the Ministry of Finance and the Ministry of Labor, Invalids, and Social Affairs, and supplemented by additional guidance from the Ministry of Finance.

b. The budget for expenditures on invalids and social welfare must clearly reflect each item of expenditure listed in Point 1, Part II of this Circular, and must provide detailed analysis regarding the number of each type of beneficiary receiving monthly pensions, disability allowances, and one-time allowances (specifying the time and average amount of the one-time allowance) during the year, planning and totaling the amount spent on each type of beneficiary under current allowance systems.

The budget must include an explanatory analysis detailing the spending situation for policy beneficiaries in previous years and quarters, and the planned spending for the current year and quarter.

c. The annual budget (with quarterly projections) and quarterly budgets within the planning year of the Department of Labor, Invalids, and Social Affairs must be divided into two parts and submitted as follows:

- The portion of the budget for expenditures from the social insurance fund revenue and centrally allocated funds transferred to the locality shall be sent to the Department of Finance for review and submission to the provincial People's Committee (city, special zone) for approval before sending to the Ministry of Finance and the Ministry of Labor, Invalids, and Social Affairs.

For localities with significant needs for expenditures on invalids and social welfare, the Ministry of Finance will coordinate with the Ministry of Labor, Invalids, and Social Affairs to organize meetings with the locality to review the aforementioned budget.

- The portion of the budget for expenditures from locally allocated funds shall be sent to the Department of Finance for review and consolidation into the local government budget for submission to the provincial People's Committee, city, or special zone for approval and notification.

In cases where the local Department of Finance agrees to directly allocate funds to labor, invalids, and social affairs agencies at the district and county levels upon agreement with the Department of Labor, Invalids, and Social Affairs, the preparation and review of the budget (including settlement of social insurance fund revenue and invalids and social welfare expenditures) will be agreed upon by the joint ministries but must comply with current regulations on procedures for preparing, reviewing, and submitting budgets.

d. The Ministry of Labor, Invalids, and Social Affairs will review quarterly and annual budget revenues and expenditures of subordinate units, consolidate them, and submit them to the Ministry of Finance according to current regulations.

e. Quarterly and annually, the Ministry of Finance will work with the Ministry of Labor, Invalids, and Social Affairs to allocate targets for social insurance fund revenue collection and invalids and social welfare expenditures, as well as centrally allocated funds transferred to the locality (after deducting local social insurance fund revenue) for each province, city, and special zone under central administration.

Targets for expenditures from centrally allocated funds are divided into two categories:

+ Expenditures for social insurance: only supplementary funds are allocated to ensure sufficient sources for payments (after deducting local social insurance fund revenue).

+ Expenditures for invalids and social welfare allowances.

2. Allocation of Funds:

a. Central budget funds allocated through the KBNN system to the account 936 "central budget funds entrusted" opened by the Department of Finance at the KBNN branch, according to the state budget classification, are as follows:

- Chapter 17, Type 13, Clause 02; Class 03; Social Insurance Fund (for state employees).

- Chapter 17A, Type 13, Clause 02; Class 1: social work expenses (for military personnel and those who have contributed to the revolution).

b. Funds allocated to the Ministry of Labor, Invalids, and Social Affairs for expenditures on subordinate institutions shall be in accordance with current regulations of the Ministry of Finance.

c. Local budget funds allocated to the Department of Labor, Invalids, and Social Affairs shall continue to be implemented according to current regulations of the Department of Finance.

3. The preparation and submission of final accounts for social insurance revenue and invalids and social welfare expenditures by local labor, invalids, and social affairs agencies shall temporarily continue to be implemented according to current guidelines of the Ministry of Labor, Invalids, and Social Affairs (including settlement forms and attached analytical explanations); however, the review and submission of consolidated final accounts by the Department of Labor, Invalids, and Social Affairs shall be regulated as follows:

a. The final account for social insurance fund revenue and expenditures funded by social insurance revenue (8% of the salary fund) and centrally allocated funds transferred to the locality shall be submitted by the Department of Labor, Invalids, and Social Affairs to the Department of Finance at the same level for verification and review; simultaneously, one copy shall be sent to the Ministry of Labor, Invalids, and Social Affairs.

After review, the Department of Finance shall process the submission to the Ministry of Finance for examination and consolidation into the final accounts of the state budget.

b. The final account for expenditures on invalids and social welfare funded by local budget allocations shall continue to be submitted to the Department of Finance according to current regulations.

4. Final accounts of expenditures by subordinate institutions of the Ministry of Labor, Invalids, and Social Affairs funded by central budget allocations shall be reviewed and consolidated by the Ministry of Labor, Invalids, and Social Affairs and submitted to the Ministry of Finance according to current regulations.

5. The Department of Finance shall have the responsibility to work with the Department of Labor, Invalids, and Social Affairs to regularly inspect labor, invalids, and social affairs agencies, finance departments, and KBNN branches at the district and county levels regarding the collection of the social insurance fund (8% of total salary fund), implementation of policies, and payment of pensions and invalids and social welfare allowances to beneficiaries, ensuring that social insurance funds are not misused for other purposes.

IV. IMPLEMENTATION PROVISIONS

1. This Circular takes effect from October 1, 1990.

2. The Department of Finance; the Department of Labor, Invalids and Social Affairs; and the Local Financial Supervision Office shall cooperate to discuss specific guidelines for consistent implementation at the local level. During the implementation process, if there are difficulties or obstacles, the Department of Labor, Invalids and Social Affairs and the Department of Finance are requested to promptly report to the Joint Ministry for study, with necessary supplements or amendments when required.