Two plans on lump-sum social insurance were submitted to the NA.

Presenting the Report on receptions, explanations, and revisions of the draft Law on Social insurance (amended), Chairwoman of the National Assembly's Committee of Social Affairs Committee Nguyen Thuy Anh stated clearly that for individuals who have not yet reached the retirement age and are no longer contributing to social insurance, besides inheriting the provisions of Article 60 of the current Law on Social insurance for cases eligible for lump-sum social insurance such as: those who have reached the retirement age but have not enough years of social insurance premiums to receive a pension; going abroad to settle; or suffering from one of the life-threatening diseases such as cancer, polio, ascites due to cirrhosis, severe tuberculosis, or AIDS, the draft law also stipulates conditions for receiving lump-sum social insurance for individuals who have not reached the retirement age, are no longer contributing to social insurance, but have paid social insurance premiums for under full 20 years, and request to receive lump-sum social insurance, it was submitted by the Government at the Sixth Session under two options:

Option 1: Employees are divided into two groups:

Group 1, continues to apply the conditions for receiving lump-sum social insurance benefits as stipulated in Resolution No. 93/2015/QH13 dated June 22, 2015 of the National Assembly on implementing policies for lump-sum social insurance benefits for employees, that is: Employees who participated in social insurance before the effective date of the Law (expected on July 1, 2025), after 12 months of not being subject to mandatory social insurance, and not participating in voluntary social insurance.

Group 2, employees who start participating in social insurance from the effective date of the Law onwards, will not apply the conditions for receiving lump-sum social insurance benefits.

Chairwoman of the Social Affairs Committee Nguyen Thuy Anh presented the Report on the reception, explanations, and revisions of the draft Law on Social insurance (amended). (Photo: National Assembly)

Option 2: Employees will be partially settled, but not exceeding 50% of total period of social insurance premium payment into the retirement and survivor allowance fund. The remaining period of social insurance premium payment will be reserved for employees to continue participating and enjoying social insurance benefits.

In accordance with point 6, section III of Resolution 28-NQ/TW, there are appropriate regulations to reduce the situation of receiving lump-sum social insurance by increasing benefits if the period of social insurance premium payment is reserved for retirement benefits and reducing benefits if receiving lump-sum social insurance. Additionally, the regulations are amended to encourage employees to participate in social insurance for a longer period, gradually increase the average retirement age, and increase the reduction rate of pension benefits for employees who wish to receive early retirement benefits.

The Chairman of the Social Affairs Committee stated that the majority of opinions in the National Assembly Standing Committee agreed with Option 1, which is also the opinion of the majority of workers in some localities surveyed by the presiding agency.

The National Assembly Standing Committee believes that, in order to best limit the situation where employees choose to receive lump-sum social insurance and to ensure social security for employees, no matter which option they choose, the Government must implement additional solutions to support employees in difficult situations who need money to cover their living expenses. Otherwise, employees will still need to receive lump-sum social insurance to have cash to solve immediate difficulties.

Adding general principles on supplementary pension insurance.

Regarding supplementary pension insurance, the Chairwoman of the Social Affairs Committee stated that the appraisal report of the Social Affairs Committee, as well as the opinions of National Assembly delegates, all suggest adding general principles on supplementary pension insurance because it is a layer in the multi-layer social insurance system as per Resolution No. 28-NQ/TW and serves as a basis for the Government to establish detailed regulations and organize implementation.

Overview of the Session

The Standing Committee of the National Assembly directed the appraisal agency to coordinate with the drafting agency to study and incorporate several contents based on the opinions of National Assembly delegates and the Government's proposal in Report No. 234/BC-CP, specifically:

Supplementing Chapter VII with four articles (from Article 128a to Article 128d) containing general principles on supplementary pension insurance; adding Clause 4 to Article 136 authorizing the Government to stipulate detailed regulations on supplementary pension insurance.

The Chairwoman of the Social Affairs Committee stated that, after incorporating feedback and revisions, the draft Law now consists of 11 chapters and 147 articles (an increase of 1 chapter and 11 articles compared to the draft Law initially submitted by the Government), along with 15 new points./.