Disagreeing with raising the retirement age.

During the National Assembly session this afternoon, the Government reported to the National Assembly on its proposal to increase the retirement age to 62 for men and 60 for women. However, the majority of members of the Committee on Social Affairs disagreed with this proposal.

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Minister Chuyen stated that the pension and death benefit fund is at risk of imbalance in the near future. The ratio between the amount paid out for benefits and the amount collected from contributions by employees and employers is trending upwards rapidly. While in 2007 the ratio of expenditure to revenue was only 57.2%, this figure rose to 73.7% in 2008, 76.3% in 2010, and is estimated to reach 76.6% in 2013.

According to forecasts by the International Labour Organization (ILO), with current policies, by 2021, the pension and death benefit fund will not have enough revenue to cover annual expenses. To ensure solvency, funds will have to be drawn from the fund's surplus. By 2034, the surplus will be depleted, and expenses will far exceed revenue.

Therefore, to avoid fund depletion, the Government proposes that from 2016 onwards, the age requirement for receiving a pension for civil servants and public employees will increase by 4 months each year until it reaches 60 years old for women and 62 years old for men. From 2020 onwards, the age requirement for receiving a pension for other groups will increase by 4 months each year until it reaches 60 years old for women and 62 years old for men.

However, upon reviewing the government's proposal, the majority of members of the Committee on Social Affairs disagreed with the suggestion to raise the retirement age. The Chairwoman of the Committee on Social Affairs, Truong Thi Mai, stated that the current Labor Code allows for adjustments to the retirement age for certain groups, and that for some strenuous, hazardous, or dangerous occupations, and in certain areas, the retirement age can be reduced to a lower age.

Previously, attending a session of the Committee on Social Affairs on April 24th, many National Assembly deputies also expressed concerns about the government's proposal to increase the retirement age. "I've heard that the Social Insurance Fund will collapse by 2030, which is very dangerous if the retirement age isn't increased. But is increasing the retirement age consistent with the current Labor Code, while retirement for workers in industries like textiles and fisheries has become a dream for many?" - Deputy Dang Ngoc Tung (Dong Nai) wondered.

Representative Cù Thị Hậu (Hưng Yên) analyzed that, according to the draft from 2016, workers who have contributed to social insurance for 20 years will receive 45% of their average monthly salary. For civil servants, 60-62 years old might be sufficient, but for other groups, from 2020 onwards, this will increase by 4 months. I am very concerned that if workers, especially those in hazardous areas, do not work for a full year, their salaries will be reduced by 2% per year, how will their lives be affected?

Delegates argued that careful consideration should be given to raising the retirement age in a way that is both consistent with the Labor Code and ensures the health of workers.

Responding to these concerns, Minister Chuyen acknowledged that extending the retirement age as proposed in the draft would violate Article 187 of the Labor Code (men retire at 60, women at 55). Therefore, increasing the retirement age would require amending the regulations in the Labor Code. “Amending the Labor Code or amending this Law requires thorough research. The goal of extending the retirement age is to balance the fund; there are no other motives,” Ms. Chuyen affirmed.

According to Seatimes