Nghe An promotes payment of pensions and social insurance benefits via personal accounts
Nghe An Social Insurance has coordinated with relevant departments and branches to promote propaganda work for units, civil servants, public employees and workers to continue to strengthen the work of mobilizing pensioners, social insurance benefits, and unemployment benefits through non-cash payment methods.
This is the content of the implementation of Plan No. 1823/KH-BHXH dated June 9, 2020 of Vietnam Social Security on "Promoting the payment of pensions, social insurance benefits, and unemployment benefits without using cash through the banking system", Official Dispatch No. 4419/UBND-KSTT dated May 29, 2024 of Nghe An Provincial People's Committee on the development of non-cash payments in the payment of pensions and social insurance benefits on the basis of the National Population Database.
User convenience
In addition to paying pensions, unemployment insurance benefits, and social insurance in cash, the provincial Social Insurance has recently paid pensions and social insurance benefits through bank accounts. With this method, pensioners and social insurance beneficiaries do not need to go to a centralized location to receive money and sign a payment list every month, but are still guaranteed timely payment.
One of the localities that has done well in implementing the payment of unemployment insurance and social insurance benefits through personal accounts on the National Population Database is Vinh City. To implement this, on June 3, 2024, the Vinh City People's Committee issued Official Dispatch No. 2959/UBND-CA on the development of non-cash payments in the payment of pensions and social insurance benefits on the National Population Database. Vinh City also requested relevant agencies such as: Nghe An Provincial Social Insurance; State Bank of Vietnam, Nghe An Branch; Vinh City Post Office to pay attention and coordinate in the implementation. Strive to basically complete the payment process on the National Population Database by September 15, 2024. As of May 2024, Vinh City has 23,290 people receiving monthly pension and social insurance benefits via ATM cards/49,032 people receiving monthly pension and social insurance benefits, reaching a rate of 47.5%.
Right after the ward informed me about receiving pension through personal account, I immediately agreed. Because my son had instructed me on how to use ATM card, I was quite proficient. And if before, every time I had pension, I had to go to the cultural house to receive it directly, now, I don't need to go far because the bank has transferred the salary directly to my personal account, very convenient and fast.
Mr. Thai Ba Linh (retired officer of Ha Huy Tap ward, Vinh city)
Transferring pensions via ATM cards is a very correct policy, both creating favorable conditions for retired cadres and saving the effort of having to travel to receive cash, which is very inconvenient. Moreover, nowadays, all purchases and sales are transferred by bank transfer, so it is very practical for the Social Insurance to propagate, promote and encourage people not to receive their salaries in cash. Like my family, both my grandparents receive their pensions via ATM accounts.
Ms. Nguyen Thi Sam (retired cadre of Nghi Phu commune, Vinh city)
In addition to the many advantages of receiving pensions through ATM accounts for retired cadres, for employees receiving sick leave, maternity leave, convalescence, and health recovery benefits, the payment method via personal ATM cards also aims to limit the situation where employers are slow to pay short-term benefits to employees. Thereby, ensuring that participants receive full, fast, accurate, and timely benefits. As for the payment agency, the implementation of this method ensures the goal of cash safety during transportation and storage, avoiding errors, reducing pressure and time in payment organization and intermediary steps through the employer.
To encourage people to receive pensions, social insurance benefits, and unemployment benefits through bank accounts, recently, the Social Insurance Agency has coordinated with a number of local banks to send staff directly to pension and benefit receiving locations to encourage people to open accounts on the spot, completely free of charge.
Synchronize solutions
On May 31, 2024, Nghe An Provincial Social Insurance and Nghe An Provincial Police had a meeting to deploy the contents of developing non-cash payments in the payment of pensions and social insurance benefits based on the National Population Database. Also attending were representatives of the State Bank of Vietnam, Nghe An branch, Nghe An Provincial Post Office and a number of commercial joint stock banks in the province. At the meeting, after exchanging, discussing and assessing the difficulties and problems related to solutions to develop non-cash payments in the payment of pensions and social insurance benefits based on the National Population Database, the parties agreed to propose solutions to effectively implement the tasks and achieve the set targets.
This is one of the important solutions that Nghe An Social Insurance coordinates with relevant departments and sectors to effectively implement the policy of paying pensions, social insurance benefits, and unemployment insurance through personal accounts under the direction of Vietnam Social Insurance, which is also one of the important tasks in digital transformation of the Social Insurance sector.
As of May 2024, there were 162,591 people in the province receiving monthly pension and social insurance benefits, of which 43,149 people received monthly pension and social insurance benefits through personal accounts, accounting for 26.5%.
Mr. Hoang Van Minh - Director of Nghe An Social Insurance said: Determining the promotion of pension payment policy, non-cash social insurance regime brings convenience to both management agencies and people, helping to increase transparency and efficiency in payment management. In order to mobilize and encourage the development of recipients of social insurance regime, unemployment benefits through personal accounts to meet the target. In the past time, Nghe An Social Insurance has focused on solutions such as:
Advise the People's Committees of districts and towns to direct relevant departments, offices and units (post offices, banks, radio and television stations, etc.) to focus on promoting non-cash payments in all areas according to the policies of the Government and the Prime Minister, including payment of social insurance and unemployment benefits; thoroughly avoid acts that go against the policy (especially making it difficult to register for non-cash payment methods or directing organizations and individuals to use cash; in case of any problems or information that needs to be reflected on the payment of social insurance and unemployment benefits through non-cash payment methods, please contact the hotline number of the Social Insurance agency); direct the banking system in localities to enhance conditions for beneficiaries to easily access services and have preferential and incentive mechanisms for beneficiaries to open personal accounts.
Promote propaganda and implementation to each beneficiary; ensure effectiveness and suitability to the conditions of each locality. Coordinate with relevant local units, media agencies, and local newspapers to propagate and mobilize people to receive pensions, social insurance benefits, and unemployment benefits through non-cash payment methods and include them in the annual propaganda plan.
For beneficiaries of one-time social insurance and unemployment benefits: Social insurance agencies of districts strive to maintain the high rate achieved, coordinate and mobilize as soon as the benefit records are created, and strive to achieve 100% of beneficiaries receiving benefits through personal accounts.
For monthly social insurance beneficiaries, continue to focus on potential beneficiaries, beneficiaries in urban areas (cities, towns, townships...) with good banking infrastructure; provide beneficiaries with a network of banks in the area for beneficiaries to choose according to their needs.
Strengthen strict management of beneficiaries through non-cash payment methods to limit late reporting of reductions, avoid abuse and profiteering of the Social Insurance Fund. Require the Post Office to seriously implement the management of beneficiaries according to the Authorization Contract signed with the Social Insurance Agency.
Accordingly, the Provincial Social Insurance assigned specific targets to the Social Insurance of districts, cities and towns to advise local Party committees and authorities on implementation; closely coordinate with the Provincial Police and relevant departments, branches, sectors and units to monitor, urge, supervise and guide the implementation of non-cash payments in monthly pension and social insurance allowance payments based on the National Population Database./.
