Pay social insurance one time to retire in the most beneficial way

(Baonghean.vn) - Regarding the regulation in Circular No. 01 of the Ministry of Labor, War Invalids and Social Affairs on paying voluntary social insurance one time to enjoy retirement benefits from April 4, 2016, although the regulation has come into legal effect, for some objective reasons, up to now, there has not been any registration in Nghe An. To help people better understand this regulation, we continue to find out information about its application, advantages and disadvantages.

Regulation mvoluntary social insurance contributions

According to regulations, if an employee meets the age requirement but does not have enough time to pay social insurance, if he/she wants to retire immediately, the minimum contribution is 22% of the monthly income multiplied by the number of months missing. Accordingly, if the area is rural, with the rural poverty line of 700 thousand VND/month, the participant must pay the lowest monthly amount of 154,000 VND (22% x 700 thousand VND) and the prescribed interest rate (total of about 165 thousand VND) multiplied by the number of months missing.

Staff update insurance payment at Vinh City Social Insurance.

Similarly, according to regulations, the highest contribution level is 20 times the basic salary. Specifically, the basic salary level according to current Government regulations is 1,150,000 VND/month. If a person wants to pay a lump sum to retire but still lacks 10 years of social insurance contributions (120 months), the highest amount to pay is 670 million VND, in which each month the highest contribution level is 5,060,000 VND (Accordingly, as the number of months of social insurance contributions that are lacking gradually decreases, the amount of contribution will also decrease gradually).

Commune and ward officials guide people to pay social insurance.

Although the regulations are as above, through discussion with Ms. Tran Thi Ha - Head of the Collection Department - Provincial Social Insurance, with about 21 thousand people participating in voluntary social insurance in the whole province at present, people mainly choose the contribution level based on the average monthly income from the average to the lowest level, so when paying at once, they also choose the low level.

Currently, due to the newly issued regulations and the Social Insurance has not yet separated the subjects, the specific number has not been given. However, the affected subjects are about 7,000 people participating in the Social Insurance of farmers who have switched to the Social Insurance and some other subjects such as commune officials who are old enough but have not paid enough Social Insurance, a small number of groups of officials and civil servants who are paying compulsory Social Insurance and are old enough, if they want to retire early, they can switch to paying voluntary Social Insurance.

Is one-time social insurance beneficial or commercial insurance beneficial?

First of all, it must be affirmed that every type of insurance has its strengths and weaknesses. For voluntary social insurance (established in 2008), it is considered one of the efforts to overcome the rigidity in social insurance services. Although this type of insurance has a low cost, it is more stable and long-term.

Previously, when there was no voluntary social insurance, many people, especially farmers, cooperative members, cooperative management boards, and preschool teachers, although they contributed a lot, but because the time of social insurance payment was not enough, they could not enjoy retirement benefits, which was a huge disadvantage.

Now that voluntary social insurance has been introduced, you can pay it once for retirement, which has overcome this shortcoming. Moreover, voluntary social insurance has a fairly low contribution rate, so it is suitable for most people in rural areas. In return, when you participate and are issued a health insurance card, you will be entitled to social security services such as compulsory social insurance when you are sick, have medical treatment, etc.

Female workers in garment companies need to participate in the appropriate type of social insurance to enjoy social security benefits when sick or giving birth.

Commercial insurance is implemented by enterprises and corporations based on a contractual agreement between the buyer and the enterprise. This type of insurance has the advantage of more diverse and flexible products suitable for each subject's income; when legal insurance events occur, the payment level may be larger. However, this type of insurance also depends on the production and business results, reputation and brand of each enterprise, so the stability is not high. If you have participated but then break the contract, the loss belongs to the participant...

People's concerns

Cua Lo Town is the first locality to have subjects eligible to pay social insurance at one time to receive retirement benefits immediately. Since 2014, the Town has had 14 people who are of age but still lack years of social insurance payment, so the Circular's regulations are a solution for these subjects and reduce pressure on the social insurance agency.

Mr. Hoang Van Duong in Nghi Huong ward said: this year he is 67 years old, has a career of about 40 years. In 2014, although he had 19 years and 2 months of social insurance payment, according to the regulations of the Law on Social Insurance, he was over the age so the payment period from over 60 years old is not accepted. Currently, there are regulations of the Ministry of Labor, Invalids and Social Affairs so he really hopes to pay voluntary social insurance one time to receive pension as soon as possible.

Representatives of Cua Lo Town Social Insurance advise and guide people on one-time social insurance payment for retirement.

Similar to Mr. Duong is Mrs. Nguyen Thi Hong in Hai Giang 2 block, Nghi Hai ward. She used to work at Cua Hoi fishing factory and returned under the 176/CP regime, then she joined the farmers' social insurance. When she was old enough, she really wanted to pay voluntary social insurance to retire, but there were no regulations so she had to wait. Now that there are new regulations, even though she is still 8 years and 4 months short, the amount of money she has to pay for social insurance is nearly 90 million VND, she is still willing to participate.

Ms. Hong said: The waiting time from 2014 until now is too long, because without a health insurance card, when sick, it is very disadvantageous. These are only 2 out of 4 cases in Cua Lo Town that need to pay voluntary social insurance to resolve the pension regime.

Since Decree 134/CP was issued and especially the Circular regulating one-time voluntary social insurance payment for immediate retirement, every day the Social Insurance Agency of Cua Lo Town receives phone calls asking about how to calculate and send documents, one-time payment procedures... from employees.

Ordinary workers can participate in voluntary social insurance with appropriate contribution levels to enjoy retirement benefits.

Nguyen Hai