Circular No. 05/2015/TT-BLDTBXH dated February 02, 2015, guidance on adjustments to pensions, social insurance benefits and monthly benefits under the Decree No.09/2015/ND-CP

CIRCULAR

GUIDANCE ON ADJUSTMENTS TO PENSIONS, SOCIAL INSURANCE BENEFITS AND MONTHLY BENEFITS UNDER THE GOVERNMENT’S DECREE NO.09/2015/ND-CP DATED JANUARY 22, 2015

Pursuant to the Government's Decree No. 106/2012/ND-CP dated December 20, 2012, defining the functions, tasks, powers and organizational structure of the Ministry of Labor, Invalids and Social Affairs;

Pursuant to the Government’s Decree No. 09/2015/ND-CP dated January 22, 2015 adjusting pensions, social insurance benefits and monthly benefits with respect to retired commune officials (hereinafter referred to as the Decree No. 09/2015/ND-CP);

At the request of Director General of the Department of Social Insurance;

The Minister of Labor, Invalids and Social Affairs promulgates the Circular providing guidance on adjustments to pensions, social insurance benefits and monthly allowances according to the Government’s Decree No. 09/2015/ND-CP dated January 22, 2015.

Article 1. Regulated entities

1. Officials, public servants, workers and employees (including persons participating in voluntary social insurance, retired persons on monthly benefits transferred from Nghe An Peasant Social Insurance under the Prime Minister’s Decision No. 41/2009/QD-TTg dated March 16, 2009); servicemen, the People’s policemen, and cipher officers on pensions before January 01, 2015.

2. Officials of communes, wards and commune-level towns as prescribed in the Government’s Decree No. 92/2009/ND-CP dated October 22, 2009, Decree No. 121/2003/ND-CP dated October 21, 2003 and Decree No. 09/1998/ND-CP dated January 23, 1998 who are on pensions, monthly benefits before January 01, 2015.

3. Persons on monthly benefits for loss of capacity for work; persons on monthly benefits as prescribed in the Prime Minister’s Decision No. 91/2000/QD-TTg dated August 04, 2000, Decision No. 613/QD-TTg dated May 06, 2010; rubber workers on monthly benefits before January 01, 2015.

Article 2. Adjustments to pensions, social insurance benefits and monthly benefits

Level of pensions, social insurance benefits and monthly benefits to the subjects as prescribed in Article 1 hereof is adjusted as follows:

Example 1: Mr. A’s pension in December 2014 is VND 4,011,800.

Mr. A’s pension as of January 2015 shall be adjusted as follows:

VND 4,011,800/month x 1.08 = VND 4,332,744/month

Example 2: Mr. B is a retired commune official. His monthly benefit in December 2014 as prescribed in the Decision No. 09/1998/ND-CP is VND 1,493,000.

Mr. B’s monthly benefits as of January 2015 shall be adjusted as follows:

VND 1,493,000/month x 1.08 = VND 1,612,440/month

Example 3: Mr. C’s monthly benefit for loss of capacity for work in December 2014 is VND 1,621,200.

Mr. C’s monthly benefits for loss of capacity for work as of January 2015 shall be adjusted as follows:

VND 1,621,200/month x 1.08 = VND 1,750,896/month

Article 3. Implementation

1. People’s committees of central-affiliated cities and provinces shall be responsible for directing Services of Labor, Invalids and Social Affairs and relevant functional agencies to inspect and speed up the execution of provisions as set out hereof.

2. Vietnam Social Insurance shall be responsible for making adjustments to pensions, social insurance benefits and monthly benefits as prescribed in the Decree No. 09/2015/ND-CP and instructions as set out hereof; formulating reports according to Form as prescribed hereof and making submission of reports to the Ministry of Labor, Invalids and Social Affairs and the Ministry of Finance before June 01, 2015.

Article 4. Effect

This Circular takes effect since March 20, 2015; schemes as prescribed hereof shall be put into force since January 01, 2015.

Difficulties that arise during the implementation of this Circular should be reported to the Ministry of Labor, Invalids and Social Affairs for study and handling. /.