Social insurance is really a pillar of social security

Under Resolution No. 28-NQ / TW dated May 23, 2018 on reforming social insurance policy, the Party Central Committee set the goal of "gradually expanding the coverage of social insurance, towards the goal of all-people social insurance coverage" with 11 reform contents and five groups of main tasks, which are considered a key to make social insurance a pillar of social welfare system. Reform of social insurance policy is both urgent and enduring. It should combine with inheritance, stability, innovation and development and must be put into relation with the development of other social policies, especially those regarding salary, income and social support so that all citizens could access social welfare services.

(Source: Internet)

The development of social insurance policy enforcement system should be streamlined, professional, efficient and modern, thus strengthening trust and satisfaction of people and stakeholders as well. Therefore, Resolution No.28-NQ/TW also stated: "Comprehensive reforms to expand the coverage of social insurance, towards the goal of social insurance for the whole population; ensure balanced social insurance fund in the long term, adjust relatively independent pension in relation to the salary of working persons and change the way of adjusting the pension in the direction of sharing”.

Therefore, the reform of social insurance policy needs high political will and joint efforts of the entire political system. The functional agencies, social security sector and trade unions should take the initiative in coordinating the reform of social insurance policy and strengthening the management of social insurance in the direction of expanding coverage, diversifying social insurance premiums and benefits for proper groups in accordance with the principle of "benefit commensurate with contribution, sharing and guarantee interests and obligations of parties concerned, including State management agencies, organizations, businesses, workers and citizens”, combining the reform of social insurance policy with the reform of wage policy, labor market and social insurance fund management mechanism under a roadmap suitable to the State's economic and budget potential; ensuring the safety of social insurance fund, especially pension fund, and in accordance with global integration commitments; enhancing trust and satisfaction of the people and social insurance participants’. At the same time, it is necessary to study specific solutions to meet the requirements of both expanding lump-sum social insurance for those who suffer serious diseases shortening life expectancy and  reducing the number of lump-sum social insurance beneficiaries due to the lack of participation time or unstable employment, towards the goal of achieving social insurance coverage for the entire population, maintaining jobs, ensuring the legitimate interests of businesses and employees; increasing the authority and responsibility of social insurance agencies for law compliance, prevention of debt evasion and fraud, embezzlement of social insurance fund, ensuring political stability, social progress and justice, improvement of local lives and sustainable national development.

Many benefits for the people

Generally, Resolution No. 28-NQ / TW on reforming social insurance policy has three major breakthroughs:

Firstly, expanding the coverage of social insurance towards the goal of social insurance for the entire population by building a multi-pillar social insurance system, amending regulations on minimum social insurance payment conditions so as to enjoy pension in the direction of reducing the social insurance payment duration to 15 years and the roadmap towards 10 years; adjusting the pension calculating formula on the principle of fairness, pay-enjoy and sharing; expanding the compulsory social insurance coverage to individual business owners, managers of cooperatives who do not receive wages and laborers working on flexible setting; strengthening the linkage and support among policies; reforming policy design and implementation to strengthen stakeholders’ trust; accelerating workers’ movement from the informal sector to the formal one.

Secondly, ensuring financial balance of social insurance fund in the long term. Specifically, fixing flaws in pension system towards more flexible conditions on eligibility and more stringent regulations on lump-sum social insurance entitlements, and increasing the actual average retirement age. Revising regulations on contribution to reach the goal of expanding coverage with modest entitlements instead of high entitlements but narrowed coverage. Adjusting maximum pension rate in line with international practices.

Thirdly, adjusting the relatively independent pension and in relation to workers’ salaries

Thus, the implementation of the above three breakthroughs will bring great benefits such as expanding the safety network, facilitating public access to "the right to be ensured social security" as regulated in the Constitution, strengthening trust and satisfaction of the people as well as those joining social insurance, creating a foundation for sustainable development. With the goal of gradually reducing the minimum social insurance payment duration from 20 years to 15 years and then 10 years to get pension, old workers with limited participation in social insurance still access and enjoy its benefits.

Additionally, in order to reduce cases of lump-sum social insurance benefits towards the goal of long-term social security, Resolution No.28-NQ/TW stipulated increasing benefits if retaining social insurance participation for pension and decreasing benefits if requesting one-time social insurance benefits. At the same time, regulations will be amended to encourage employees to participate in social insurance for a longer period, gradually increasing the average retirement age, deducting pensions for employees who want to receive early retirement benefits. Compulsory social insurance participants will be expanded to business owners and managers, cooperative managers without salaries, and employees working on flexible setting. The Resolution also set out the task of studying and designing flexible voluntary short-term social insurance packages so that employees have many choices to participate and enjoy. At the same time, favorable conditions will be created for switch between voluntary and compulsory social insurance, towards achieving compulsory social insurance for all paid employees when they meet necessary requirements./.