(Chinhphu.vn) - Sending comments to the 4th Session, National Assembly XIV, the voters of Dong Nai Province proposed to reconsider the regulation of the time of paying social insurance and the rate of pension from 2018 according to schedule of 35 years for men and 30 years for women instead of 30 years for men and 25 years for women as today. Because this regulation will affect the benefits of participantswho participate insocial insurance.

Regarding this issue, The Ministry of Labor, War Invalids and Social Affairs responds to voters as follows:

The Social Insurance Law 2014 was developed in the context that Vietnam was undergoing a period of golden population structure, but it also entered the period of population aging with the speed assessed as the fastest in the world; the increase in the number of pensioners was higher than the growth rate of social insurance participants; The rapidly increasing life expectancy of the population leaded to a longer period of average pension than before; Social insurance policies, which were designed for the initial target of workers and State employees, were guaranteed by the State budget to expand to other employees but they were not adjusted appropriately; The ratio between the retirement pension and the average salary of social insurance of employees is much higher than that of other countries with similar premiums, thus leading to an imbalance in the social insurance fund in the near future.

Therefore, one of the goals set forth when amending the Law on Social Insurance in 2006 was that there should be policy adjustments to ensure the balance of retirement and death funds in the long term in the direction of either increasing the premium, or reduced the level of enjoyment.

The increase in the rate of premiums to pension and death fund were adjusted in the period from 2010 to 2014 in accordance with the Law on Social Insurance in 2006 and is considered to reach the threshold for businesses to implement. It is difficult to increase more.

Therefore, in order to ensure the balance of the social insurance fund, it is necessary to consider adjusting the rate of retirement pension in accordance with the principle of contribution and benefits. However, the adjustment for reducing the maximum pension benefit rate from 75% to about 50% - 55% (the average level in the world) as recommended by international organizations is difficult to implement. Therefore, the Law on Social Insurance in 2014 was adopted by the National Assembly in the direction of maintaining a maximum pension rate of 75%, However, it is necessary to extend the time to contribute to achieve this rate for 5 years for both men and women.

Specifically, according to the provisions of Clause 2, Article 56 and Clause 2, Article 74 of the Law on Social Insurance 2014:From 2018, the number of years of paying social insurance to achieve the 75% pension rate of male employees is 31 years for retirees in 2018; 32 years for retirees in 2019; 33 years for retirees in 2020; 34 years for retirees in 2021; 35 years for people who retire from 2022 onwards. Particularly for female workers, from 2018 onwards, the time to pay social insurance to reach the pension rate is 30 years at most.

In this issue, the Ministry of Labor, War Invalids and Social Affairs actively organized a research and an assessment of the impact of this regulation, proposed plans to report to the Government and on November 21, 2017, the Government had a Report No. 548 / BC-CP reports to the National Assembly on the handling of the difference between the pension level for retirees before and after the date of January 1, 2018 according to the provisions of the Law on Social Insurance 2014.