Minister of Labour, War Invalids and Social Affairs Pham Thi HaiChuyen said that aside from raising the retirement age, there have beenmany solutions proposed to maintain the balance of revenues and expensesof the social insurance fund.
The minister spoke with theSaigon Times Daily about the issues on the sidelines of NationalAssembly (NA) discussion session on June 16.
*The revised Law onSocial Insurance has drawn much objection from the public with manypeople saying that this is a step back in worker protection, especiallythe retirement age issue. What do you comment on this?
Objectionis a normal reaction. While the drafting board has calculated long-termfactors in the draft law, many NA deputies do not consider the issuesthat way. But on June 18, after listening to suggestions from NAdeputies, the drafting board will look into regulations carefully tomatch expectations of deputies.
In the draft, employees workingunder tough conditions are not subject to the retirement age increaserule while others in some specific sectors will only comply with therule after 2020. But many deputies have still disagreed at theregulation.
*It means that revisions in the draft law arereasonable as the retirement age increase rule will be applied to civilservants in the near term. Do you think the people have misunderstoodthe issue?
Yes, they have. There are two types of workers andthose working in hard and toxic conditions are not subject to the rule.For other workers, for instance those in the garment and textile sector,the scheme will only apply after 2020. The scheme envisions raising theretirement age by four months every year and is designed for employeesat State agencies only. Therefore, it is not right to say that allemployees will be affected by the rule at the same time.
*Raisingthe retirement age aims to prevent the social insurance fund from goingbust. However, many people said that the retirement age has nothing todo with bankruptcy and they blame poor management for the danger. Whatdo you think about this?
It’s not right to think that there is norelation between the retirement age and the security of the fund.Longer social insurance payment time will help stabilise the fund.However, the retirement age is not the only cause.
To secure thebalance of revenues and expenses of the social insurance fund, thereare still many solutions such as raising payments of both employers andemployees, reducing benefits, improving fund management, and securing ahigh payment rate from most people.
A retirement age increase is a part of the scheme but it’s not right to say that it does not lead to bankruptcy.
*Somesay that the management fee of the social insurance fund is too high,which is proposed at 3 percent of revenues. How do you explain this?
Infact, we just have only used the interest on deposits made by this fundto cover the management fee. The draft proposes that the management feenot exceed 3 percent of the interest. I think that deputies are right.We should not use the fund but taking apart from the State budget and apart from the interest.
*Some NA deputies have said that shortcomings of the draft are a step back in worker protection. What do you think?
Idisagree at the suggestions. In fact, the draft law mentions many newissues with an aim to protect employees. In fact, earlier, employeesobtained 45 percent of their wage after 15 years of work but now, theywill get it after 20 years while the retirement age will be lifted. Theydon’t want it and neither do we.
In the long term,we have to secure stable development of the fund. The risk of fundbankruptcy is likely to occur in 2034 as warned by the InternationalLabor Organisation (ILO) if we don’t apply suitable measures now.Therefore, we have to find many solutions to improve fund management andrealise specific policies in the insurance sector. Besides, thedrafting board has to listen to suggestions of deputies.-VNA
The minister spoke with theSaigon Times Daily about the issues on the sidelines of NationalAssembly (NA) discussion session on June 16.
*The revised Law onSocial Insurance has drawn much objection from the public with manypeople saying that this is a step back in worker protection, especiallythe retirement age issue. What do you comment on this?
Objectionis a normal reaction. While the drafting board has calculated long-termfactors in the draft law, many NA deputies do not consider the issuesthat way. But on June 18, after listening to suggestions from NAdeputies, the drafting board will look into regulations carefully tomatch expectations of deputies.
In the draft, employees workingunder tough conditions are not subject to the retirement age increaserule while others in some specific sectors will only comply with therule after 2020. But many deputies have still disagreed at theregulation.
*It means that revisions in the draft law arereasonable as the retirement age increase rule will be applied to civilservants in the near term. Do you think the people have misunderstoodthe issue?
Yes, they have. There are two types of workers andthose working in hard and toxic conditions are not subject to the rule.For other workers, for instance those in the garment and textile sector,the scheme will only apply after 2020. The scheme envisions raising theretirement age by four months every year and is designed for employeesat State agencies only. Therefore, it is not right to say that allemployees will be affected by the rule at the same time.
*Raisingthe retirement age aims to prevent the social insurance fund from goingbust. However, many people said that the retirement age has nothing todo with bankruptcy and they blame poor management for the danger. Whatdo you think about this?
It’s not right to think that there is norelation between the retirement age and the security of the fund.Longer social insurance payment time will help stabilise the fund.However, the retirement age is not the only cause.
To secure thebalance of revenues and expenses of the social insurance fund, thereare still many solutions such as raising payments of both employers andemployees, reducing benefits, improving fund management, and securing ahigh payment rate from most people.
A retirement age increase is a part of the scheme but it’s not right to say that it does not lead to bankruptcy.
*Somesay that the management fee of the social insurance fund is too high,which is proposed at 3 percent of revenues. How do you explain this?
Infact, we just have only used the interest on deposits made by this fundto cover the management fee. The draft proposes that the management feenot exceed 3 percent of the interest. I think that deputies are right.We should not use the fund but taking apart from the State budget and apart from the interest.
*Some NA deputies have said that shortcomings of the draft are a step back in worker protection. What do you think?
Idisagree at the suggestions. In fact, the draft law mentions many newissues with an aim to protect employees. In fact, earlier, employeesobtained 45 percent of their wage after 15 years of work but now, theywill get it after 20 years while the retirement age will be lifted. Theydon’t want it and neither do we.
In the long term,we have to secure stable development of the fund. The risk of fundbankruptcy is likely to occur in 2034 as warned by the InternationalLabor Organisation (ILO) if we don’t apply suitable measures now.Therefore, we have to find many solutions to improve fund management andrealise specific policies in the insurance sector. Besides, thedrafting board has to listen to suggestions of deputies.-VNA
