Reducing the age for social pension benefits to 75, how many people will benefit?

Reducing the age for social pension benefits

Related to the report Revised Social Insurance Law project The Government has just sent to the National Assembly a proposal to supplement social pension benefits to form a system insurance Multi-layered society is one of the new points compared to current regulations.

The 2014 Social Insurance Law stipulates compulsory social insurance, voluntary social insurance and insurance retirement supplement.

This revised draft of the Social Insurance Law adds a chapter on social pension benefits. Specifically, Vietnamese citizens aged 75 or older without a pension, monthly social insurance benefits and other monthly social benefits will be entitled to pension benefits social security guaranteed by the state budget.

According to the benefit level statement Monthly social pension is regulated by the Government in accordance with socio-economic development conditions and the state budget capacity in each period.

The State encourages localities to According to socio-economic conditions, the ability to balance the budget combined with mobilizing social resources to provide additional support for social pension beneficiaries.

Reducing the age for social pension benefits

According to the draft law, the Government reports to the National Assembly Decide to gradually adjust and reduce the age for social pension benefits in accordance with the capacity of the state budget in each period.

Reducing the age for social pension benefits from 80 years old down to 75 years old will help expand the number of beneficiaries of social pension benefits to about 800 thousand elderly people receiving social pension benefits and health insurance.

More monthly allowance

The next new point of the law project is the monthly allowance paid by the Social Insurance Fund for the period not yet eligible for pension and before when reaching the age to receive social pension benefits.

Specifically, when employees reach retirement age, they have time to pay social insurance (including both mandatory and voluntary) but are not yet eligible. Receiving a pension (under 15 years of payment) and not yet old enough to receive social pension benefits (under 75 years old), you can choose to receive a monthly benefit.

Amount of benefit This depends on the time of paying salary and monthly social insurance payment of the employee. Besides, during the period of receiving monthly benefits, you will also receive health insurance.

According to the Government, this regulation helps increase the number of monthly subsidy recipients without much increase in the state budget.

At the same time, the Basic Social Insurance Fund also is not affected because monthly benefits are implemented on the principle of contribution – benefit.

According to calculations, employees have a social insurance payment period of 5 years with a monthly salary for insurance payment. The current average mandatory requirement is that when reaching retirement age, you will receive a monthly allowance if you do not withdraw social insurance in one lump sum.

The draft law inherits current regulations such as social pension benefits. Social insurance guaranteed by the state budget will continue to be implemented by localities along with other policies for the elderly and monthly benefits guaranteed by the social insurance fund will be implemented by the Social Insurance agency. show.