Workers able to collect insurance lump sum from 2016

Workers under certain circumstances could opt to receive a social insurance lump sum, rather than waiting until retirement age to collect insurance payments in the form of monthly pensions, as stated in a resolution ratified by National Assembly deputies on June 22.

The resolution, approved by 404 deputies, or 81.78%, followed a Government proposal on modifying Article 60 of the 2014 Law on Social Insurance. Proposed modifications are expected to create a flexible social insurance policy to meet the wishes of labourers. 

Under the resolution, workers can continue to reserve their social insurance premium paying period to be eligible for retirement pensions once they surpass the working age, as prescribed in the 2014 law. 

Workers entitled to a lump sum include those quitting their jobs after paying compulsory social insurance for one year and those who stopped paying voluntary insurance premiums after one year of doing so, but their total paying period is less than 20 years. 

The resolution also requests the Government popularise the Law on Social Insurance, ensure workers can reserve their premium paying period or receive a lump sum, publicise information on paying premiums and receiving insurance benefits to both employees and employers, increase inspections and strictly punish law violations. 

The resolution will take effect on January 1, 2016.
VNA