Consolidated Document number 57/VBHN-BTC Circular guiding certain provisions stipulated in Decree number 88/2016/NĐ-CP dated July 1, 2016 of the Government on voluntary supplementary pension programs

MINISTRY OF FINANCE --------	SOCIALIST REPUBLIC OF VIET NAM Independence - Freedom - Happiness ---------------
Number: 57/CONSOLIDATED DOCUMENT - MINISTRY OF FINANCE	Hanoi, December 31, 2020

CIRCULAR[1]

GUIDANCE ON CERTAIN PROVISIONS OF THE DECREE NO. 88/2016/ND-CP OF JULY 1, 2016 ISSUED BY THE GOVERNMENT ON THE VOLUNTARY PENSION SUPPLEMENT PROGRAM

Circular No. 86/2017/TT-BTC dated August 15, 2017 issued by the Ministry of Finance provides guidance on certain provisions of Decree No. 88/2016/ND-CP dated July 1, 2016 issued by the Government on the voluntary pension supplement program, which took effect from October 1, 2017, amended and supplemented by:

Circular No. 84/2020/TT-BTC dated October 1, 2020 issued by the Ministry of Finance amends and supplements regulations on periodic reporting systems within the authority of the Minister of Finance in the field of financial banking, which took effect from November 15, 2020.

Pursuant to Decree No. 87/2017/ND-CP dated July 26, 2017 issued by the Government on the functions, tasks, powers, and organizational structure of the Ministry of Finance;

Pursuant to Decree No. 88/2016/ND-CP dated July 1, 2016 issued by the Government on the voluntary pension supplement program;

At the proposal of the Director of the Department of Financial Affairs of Banks and Financial Institutions,

The Minister of Finance promulgates this Circular to provide guidance on implementing certain provisions of Decree No. 88/2016/ND-CP dated July 1, 2016 issued by the Government on the voluntary pension supplement program.[2]

Article 1. Scope of Regulation

This Circular provides guidance on investment, accounting, determination of net asset value, and reporting requirements for pension fund management enterprises and supervisory banks as stipulated in Decree No. 88/2016/ND-CP dated July 1, 2016 issued by the Government on the voluntary pension supplement program (hereinafter referred to as Decree No. 88/2016/ND-CP).

Article 2. Applicability

1. Pension fund management enterprises.

2. Supervisory banks; depositary organizations.

3. Organizations and individuals providing services related to the establishment, operation, management, and supervision of voluntary pension supplement funds.

Article 3. Investment of pension funds

1. Pension fund investment activities shall be carried out in accordance with Article 20 of Decree No. 88/2016/ND-CP based on compliance with legal regulations, self-responsibility for investment activities, ensuring safety and efficiency, in line with the objectives and investment policies of the pension fund as stipulated in the fund's charter.

2. In addition to complying with Article 20 of Decree No. 88/2016/ND-CP, pension funds may invest up to twenty percent (20%) of the total value of the fund’s assets in certificates of securities investment funds.

3. In cases where investments are made in certificates of securities investment funds managed by pension fund management enterprises, such enterprises may only charge a one-time management fee.

4. Based on market conditions and pension fund investment activities, the Ministry of Finance may adjust the investment portfolio and limits as stipulated in Clause 2 of this Article.

Article 4. Accounting of pension funds

Pension funds shall apply the accounting regime for open-ended funds as prescribed in Circular No. 198/2012/TT-BTC dated November 15, 2012 issued by the Ministry of Finance on the accounting regime applicable to open-ended funds, Circular No. 181/2015/TT-BTC dated November 13, 2015 issued by the Ministry of Finance on the accounting regime applicable to exchange-traded funds, and any subsequent amendments and supplements to account for and record the business operations of the fund.

Article 5. Determination of Net Asset Value of Pension Funds

1. Monthly, pension fund management enterprises are responsible for determining the net asset value of the pension fund and the individual retirement account value as stipulated in Point c Clause 1 Article 21 and Point c Clause 1 Article 22 of Decree No. 88/2016/ND-CP.

2. Pension fund management enterprises must establish a regulation for determining the net asset value and individual retirement account value as a basis for implementation. The regulation must include the following basic contents:

a) Principles for determining the net asset value of the pension fund and the individual retirement account value;

b) Detailed procedures for implementing valuation methods for each type of investment asset of the pension fund;

c) The level of error for which the pension fund management enterprise is responsible for compensating participants according to Point b Clause 1 Article 23 of Decree No. 88/2016/ND-CP.

3. Regulations for determining the net asset value of the pension fund and the individual retirement account value must be stipulated in the fund's charter as prescribed in Point m Clause 1 Article 14 of Decree No. 88/2016/ND-CP. The regulation must be published on the website of the pension fund management enterprise and simultaneously sent to the supervisory bank for inspection and supervision as prescribed in Point c Clause 4 Article 16 of Decree No. 88/2016/ND-CP.

4. The determination of market values of pension fund assets shall be conducted according to the method prescribed in Article 19 of Circular No. 183/2011/TT-BTC dated January 20, 2016 issued by the Ministry of Finance guiding the establishment and management of open-ended funds and any subsequent amendments and supplements.

5. When pension fund management enterprises incorrectly determine the net asset value of the pension fund or the individual retirement account value and actual losses occur for participants, the pension fund management enterprise must compensate the participants according to Article 23 of Decree No. 88/2016/ND-CP. The level of error requiring compensation is specified in the regulation for determining the net asset value of the pension fund and the individual retirement account value as stipulated in Clause 2 of this Article but not less than 0.75% of the net asset value of the fund.

6. Supervisory banks are responsible for checking and confirming the net asset value of the pension fund and the individual retirement account value as prescribed in Point c Clause 4 Article 16 of Decree No. 88/2016/ND-CP. If incorrect valuation of the net asset value or individual retirement account value is discovered, the supervisory bank must notify and require the pension fund management enterprise to adjust within twenty-four (24) hours.

7. Within a maximum period of three (03) working days from the valuation date, the net asset value of the pension fund must be published on the websites of the pension fund management enterprise and the retirement agent.

Article 6. Reporting System for Pension Fund Management Enterprises

1. In addition to complying with the financial reporting system as prescribed in Point c Clause 1 Article 32 Decree No. 88/2016/ND-CP, pension fund management enterprises must implement a reporting system on pension fund management activities and risk management, internal control systems, specifically as follows:

a) Supplementary voluntary pension fund management activity report according to Appendix 1 issued together with this Circular. The report shall be conducted annually; the deadline for submitting the report is no later than three months after the end of the year;

b) Report on assets of supplementary voluntary pension funds according to Appendix 2 issued together with this Circular. The report shall be conducted quarterly; the deadline for submitting the report is no later than twenty days after the end of the most recent quarter;

c) Report on investment activities of supplementary voluntary pension funds according to Appendix 3 issued together with this Circular. The report shall be conducted quarterly; the deadline for submitting the report is no later than twenty days after the end of the most recent quarter;

d) Report on risk management and internal control systems according to Appendix 4 issued together with this Circular. The report shall be conducted annually; the deadline for submitting the report is no later than three months after the end of the year.

2. The reports prescribed in Clause 1 of this Article shall be submitted to the Ministry of Finance and the Ministry of Labor, Invalids and Social Affairs in accordance with Article 32 of Decree No. 88/2016/ND-CP.

3.[3] The method of submitting reports shall be carried out through one of the following methods:

a) Directly in paper form;

b) Through postal service in paper form;

c) Sending via email or specialized information software system;

d) Other methods as prescribed by law.

Article 7. Reporting System for Supervisory Banks

1. Supervisory banks have the responsibility to implement a reporting system on the results of inspections and supervision of pension fund management activities of pension fund management enterprises as prescribed in Article 33 of Decree No. 88/2016/ND-CP. The report format is as prescribed in Appendix 5 issued together with this Circular.

2. The recipient of the report and the deadline for submitting the reports prescribed in Clause 1 of this Article shall be implemented in accordance with Article 33 of Decree No. 88/2016/ND-CP.

3.[4] The method of submitting reports shall be carried out through one of the following methods:

a) Directly in paper form;

b) Through postal service in paper form;

c) Sending via email or specialized information software system;

d) Other methods as prescribed by law.

Article 8. Implementation clause

[5]

1. This Circular takes effect from October 1, 2017.

2. The Director of the Ministry of Finance's Office, the Head of the Department of Banking and Financial Institutions, the Heads of relevant units under the Ministry of Finance, pension fund management enterprises, supervisory banks, and related organizations and individuals are responsible for implementing this Circular.

CERTIFIED CONSOLIDATED DOCUMENT DEPUTY MINISTER DEPUTY MINISTER Huynh Quang Hai

ANNEX 1

(Issued together with Circular No. 86/2017/TT-BTC dated August 15, 2017 of the Ministry of Finance guiding the implementation of certain provisions of Decree No. 88/2016/NĐ-CP dated July 1, 2016 of the Government on the voluntary supplementary pension program)

REPORT ON PENSION FUND MANAGEMENT ACTIVITIES OF VOLUNTARY SUPPLEMENTARY PENSION FUNDS

Respectfully submitted to:

- Ministry of Finance; - Ministry of Labor, Invalids and Social Affairs.

- Name of the voluntary pension fund management enterprise:...

- Address:

- Business registration certificate number...issued by...on...

- Reporting period year:...

- Names and addresses of service providers for the pension fund management enterprise (fund accounting, individual retirement account management) (if applicable);

- List of retirement agents.

1. General Report

Serial number	Index	Unit	- The book value of the security is determined according to the Accounting System of the State Bank and the guidance document of the State Bank on the accounting treatment of foreign securities investment operations.	Changes compared to the previous reporting period
I	Number of voluntary supplementary pension funds being managed
II	Total net asset value of the voluntary supplementary pension funds being managed
	Where:
1	Total contributions to voluntary supplementary pension funds during the period
2	Total payments from voluntary supplementary pension funds during the period
3	Total investment value at the end of the reporting period

2. Report for each voluntary supplementary pension fund being managed

(Detailed for each voluntary supplementary pension fund being managed)

- Name of the voluntary supplementary pension fund;

- Charter of the fund number...dated...; amended and supplemented charter number...dated...(if applicable); Specifically stating the investment policy of the voluntary supplementary pension fund, the proportion of investment in each type of asset as prescribed in Clause 3 Article 20 Decree No. 88/2016/ND-CP.

- Name of the depository organization;

- Name of the supervisory bank;

Serial number	Index	Unit	- The book value of the security is determined according to the Accounting System of the State Bank and the guidance document of the State Bank on the accounting treatment of foreign securities investment operations.	Changes compared to the previous reporting period
I	Total number of participants in the fund (I = 1 + 2)
1	Number of individual direct participants in the fund
2	Number of employees participating in the fund through employers (Detailed for each enterprise)
II	Net asset value of the fund
	Where:
1	Total contributions to voluntary supplementary pension funds during the period
2	Total payments from voluntary supplementary pension funds during the period
3	Total net asset value of the voluntary supplementary pension fund

..., date..., month..., year... LEGAL REPRESENTATIVE (Signature, full name, stamp)

ANNEX 2

(Issued together with Circular No. 86/2017/TT-BTC dated August 15, 2017 of the Ministry of Finance guiding the implementation of certain provisions of Decree No. 88/2016/NĐ-CP dated July 1, 2016 of the Government on the voluntary supplementary pension program)

REPORT ON ASSETS OF VOLUNTARY SUPPLEMENTARY PENSION FUNDS

(applicable to each voluntary supplementary pension fund)

Respectfully submitted to:

- Ministry of Finance; - Ministry of Labor, Invalids and Social Affairs.

- Name of the voluntary pension fund management enterprise:...

- Address:

- Business registration certificate number...issued by...on...

- Reporting quarter...year...

- Name of the voluntary supplementary pension fund;

- Charter of the fund number...dated...; amended and supplemented charter number...dated...(if applicable); Specifically stating the investment policy of the voluntary supplementary pension fund, the proportion of investment in each type of asset as prescribed in Clause 3 Article 20 Decree No. 88/2016/ND-CP.

Unit of measurement:...VND

No.	Assets	Reporting period	Previous period	%/same period last year
1	Cash and cash equivalents
	=
	Bank deposits
	Cash equivalents
2	Government Bonds
3	Government-guaranteed bonds
4	Local government bonds
5	Investment certificates in securities
6	Receivables
	Interest and dividends received
	Other receivables
	Provision for doubtful debts
7	Total Assets

..., date..., month..., year... LEGAL REPRESENTATIVE (Sign, write full name and stamp)

ANNEX 3

(Issued together with Circular No. 86/2017/TT-BTC dated August 15, 2017 of the Ministry of Finance guiding the implementation of certain provisions of Decree No. 88/2016/NĐ-CP dated July 1, 2016 of the Government on the voluntary supplementary pension program)

REPORT ON INVESTMENT ACTIVITIES OF VOLUNTARY SUPPLEMENTARY PENSION FUNDS

(applicable to each voluntary supplementary pension fund)

Respectfully submitted to:

- Ministry of Finance; - Ministry of Labor, Invalids and Social Affairs.

- Name of the voluntary pension fund management enterprise:...

- Address:

- Business registration certificate number...issued by...on...

- Reporting quarter...year...

- Name of the voluntary supplementary pension fund;

- Charter of the fund number...dated...; amended and supplemented charter number...dated...(if applicable); Investment policy of the voluntary supplementary pension fund, the proportion of investment in each type of asset as prescribed in Clause 3 Article 20 Decree No. 88/2016/ND-CP.

Unit of measurement:...VND

I. REPORT ON THE INVESTMENT PORTFOLIO OF THE FUND

No.	Type of asset (specify in detail)	Quantity	Market price or fair value on the reporting date	Total value	Percentage / Total asset value of the fund
I	=
1	Cash
2	Bank deposits
	Total
II	Government Bonds
III	Government-guaranteed bonds
IV	Local government bonds
V	Investment certificates in securities
1
2
	Total
VI	Receivables
1	Interest and dividends received
2	Other receivables
3	Provision for doubtful debts
	Total
VII	Total Portfolio Value

II. REPORT ON THE RESULTS OF INVESTMENT ACTIVITY

No.	Index	Reporting period	Previous period	Cumulative since the beginning of the year
I	Income from investment activity
1	Interest and dividends received
2	Other income
II	Cost
1	Management fee paid to the pension fund management enterprise
2	Custody fee paid to the depository organization
3	Supervision fee paid to the supervisory bank
4	Service fees for fund accounting, individual retirement account management, and other related expenses paid by the pension fund management enterprise to service providers;
5	Audit fee paid to the auditing organization;
6	Expenses related to executing transactions involving fund assets
7	Other fees (specify in detail)
III	Net income from investment activity (I-II)
IV	Profit (loss) from investment activity
1	Actual profit (loss) generated from investment activity
2	Change in value of investments during the period
V	Change in net asset value of the Fund due to investment activities during the period (III + IV)
VI	Opening net asset value
VII	Change in net asset value of the Fund during the period:
	Of which
1	Change in net asset value of the Fund due to investment activities of the Fund during the period
2	Change in net asset value of the Fund due to contributions from participants during the period
3	Change in the net asset value of the Fund due to payments made to participants during the period
VIII	End-of-period net asset value

..., date..., month..., year... LEGAL REPRESENTATIVE (Sign, write full name and stamp)

ANNEX 4

(Issued together with Circular No. 86/2017/TT-BTC dated August 15, 2017 of the Ministry of Finance guiding the implementation of certain provisions of Decree No. 88/2016/NĐ-CP dated July 1, 2016 of the Government on the voluntary supplementary pension program)

REPORT ON THE MANAGEMENT OF RISKS AND IMPLEMENTATION OF INTERNAL CONTROL SYSTEM IN THE MANAGEMENT OF PENSION FUNDS

Respectfully submitted to:

- Ministry of Finance; - Ministry of Labor, Invalids and Social Affairs.

- Name of the voluntary pension fund management enterprise:...

- Address:

- Business registration certificate number...issued by...on...

- Reporting period year:...

- Name and address of organizations providing services related to the pension fund management enterprise (fund accounting, individual pension account management) (if applicable).

1. General situation of the pension fund management enterprise

- Reissued Business Registration Certificate number... dated...;

- Subject to restructuring or special supervision;

- Complaints, accusations, disputes in the year related to pension fund management activities (if any);

- Cases of compensation for losses to fund participants;

- Minutes/reports of inspections and audits conducted by state management agencies during the year.

2. Situation of each voluntary supplementary pension fund

- Changes in depository organization;

- Changes in supervisory bank;

- Changes in the charter of the fund; Specifically mentioning changes in the investment policy of the voluntary supplementary pension fund.

3. Report on the implementation of the internal control system of the pension fund management enterprise in managing pension funds

- Evaluation of the implementation and application of the internal control system of the pension fund management enterprise in managing pension funds.

..., date..., month..., year... LEGAL REPRESENTATIVE (Signature, full name, stamp)

ANNEX 5

(Issued together with Circular No. 86/2017/TT-BTC dated August 15, 2017 of the Ministry of Finance guiding the implementation of certain provisions of Decree No. 88/2016/NĐ-CP dated July 1, 2016 of the Government on the voluntary supplementary pension program)

REPORT ON THE RESULTS OF SUPERVISION AND MONITORING BY THE SUPERVISORY BANK FOR THE PENSION FUND MANAGEMENT ENTERPRISE IN MANAGING PENSION FUNDS

Respectfully submitted to:

- Ministry of Finance; - Ministry of Labor, Invalids and Social Affairs.

- Name of supervisory bank:...

- Address:...

- Name of supervised pension fund management enterprise:...

- Address:...

- Business Registration Certificate for pension fund management services number... issued on...

- Name and address of organizations providing services related to the pension fund management enterprise (fund accounting, individual pension account management) (if applicable).

- Reporting period year:...

1. Regarding compliance with obligations of the pension fund management enterprise

- Evaluation of compliance with obligations under Decree No. 88/2016/ND-CP for pension fund management enterprises and service providers regarding compliance with obligations stipulated in Decree No. 88/2016/ND-CP, the fund charter, participation contracts, and related service contracts;

- Cases of compensation for losses to fund participants (if any);

- Regarding separate accounting and management of participants' assets and the pension fund management enterprise's assets.

2. Regarding investment activities

- Evaluation of compliance with the fund's investment policy according to the fund charter, and compliance with rights and responsibilities of parties involved in pension fund transactions and individual pension accounts.

3. Regarding management of individual pension accounts

- Evaluation of allocation of investment results, determination of the value of individual pension accounts.

4. Regarding the implementation of the internal control system of the pension fund management enterprise in managing pension funds

- Evaluation of the implementation of the internal control system of the pension fund management enterprise in managing pension funds;

- Evaluation of procedures and methods for determining the net asset value of pension funds;

- Evaluation of procedures and methods for allocating investment results, determining the value of individual pension accounts.

- Potential risks (if any).

..., date..., month..., year... AUTHORIZED REPRESENTATIVE OF THE SUPERVISORY BANK (Signature, full name, stamp)