Chairman Hue highlighted the issuance of two crucial resolutions, namely Resolution No. 27-NQ/TW on wage policy reform and Resolution No. 28-NQ/TW on social insurance policy reform, during the 7th Central Committee Plenum of the 12th tenure.

National Assembly Chairman Vuong Dinh Hue delivered a speech (Photo: Lam Hien)

Assertively, it must be clearly designed as a state responsibility.

Regarding social insurance policy reform, Chairperson Hue stressed: The central authority unanimously issued a resolution on this matter, signifying a very fundamental change in social insurance policy orientation. The primary objective is to establish a multi-tiered social insurance system, specifically comprising three tiers: the first tier involves pension funds from taxes; the second is mandatory social insurance, and the third tier encompasses voluntary social insurance combined with commercial insurance to form a multi-tiered system, ultimately aiming for nationwide social insurance coverage.

To establish such a multi-tiered social insurance system, the draft amended Law on Social Insurance has supplemented social retirement benefits, reflecting the essence of Resolution No. 28 - NQ/TW.

According to the National Assembly Chairman, it is possible to regulate the gradual reduction of the retirement age and the specific level of benefits. This responsibility might be entrusted to the National Assembly Standing Committee for examination and decision-making in each period, based on the government's proposals and considering the state budget's capacity. Perhaps we should design regulations with specifics, meaning that the current benchmark age of 80 could gradually decrease to 75, and further revisions could be considered in the future, accompanied by an increase in the specific benefit levels.

The National Assembly Chairman also mentioned that the draft law currently lacks clear provisions regarding retirement insurance benefits for the elderly, leading to confusion between those eligible for social retirement benefits and those entitled to benefits under the amended Elderly Law. Hence, according to Hue, the most critical issues regarding the eligible age and benefit levels should have flexible regulations to avoid future legislative revisions while ensuring smooth operation. The government will propose this, and subsequently, the National Assembly Standing Committee will decide.

Moreover, the National Assembly Chairman proposed that, within the four articles from Article 20 to Article 24 of the draft Law on Social Retirement Benefits, there must be explicit provisions stating that this expense is covered by the state budget; otherwise, it might pose considerable difficulties in the future.

Secondly, this draft law also amends the conditions for receiving retirement benefits by reducing the minimum years of social insurance contribution required for pension eligibility from 20 years to 15 years and eventually to 10 years. This aims to increase the number of beneficiaries and provide access to social insurance benefits for elderly workers with lower years of social insurance contributions.

Numerous revolutionary changes are underway.

Thirdly, the method of calculating social insurance contributions has changed, with some revolutionary alterations, as affirmed by the National Assembly Chairman.

Regarding the conditions for receiving social retirement benefits, after consulting experts, Hue mentioned concerns about whether the regulations stipulating that Vietnamese citizens aged 75 and above without pensions, monthly social insurance allowances, or other monthly social allowances would receive social retirement benefits ensured by the state budget are adequate. Some argue whether additional criteria should be added, such as having no individual income or other stipulations, as there are private business owners—should they be subject to these additional criteria?

Discussion in Group 4 on November 2nd (Photo: Lam Hien)

Concerning the provision of one-time social insurance payouts, this is the most concerning issue for workers. The draft law proposes two options: the first suggests different one-time payouts for two different groups of workers, while the second stipulates that 'after 12 months of not being obligated to participate in compulsory social insurance, not participating in voluntary social insurance, and having less than 20 years of social insurance contributions, individuals can request a partial settlement, capped at a maximum of 50% of the total contribution period to the retirement and survivorship fund. The remaining contribution period will be retained for the workers to continue participating and enjoying social insurance benefits.'

Both design options in the draft law have their merits and drawbacks. Some suggest integrating these options into a more diverse choice for workers.

Regarding the expansion of mandatory social insurance coverage, the National Assembly Chairman suggested following global experience: gradual expansion over time, the necessity of an initial support mechanism to encourage gradual participation. There could be various packages based on the principle of 'more contributions, more benefits,' with the option for progressive contribution amounts for individuals to choose from./.