Voluntary pension insurance should be implemented as soon as possiblebecause the delay would make life of retirees more difficult, a labourministry official has said.
Speaking at a recent conference onvoluntary pension insurance, Truong Giang, Deputy Director of the SocialInsurance Department under the Ministry of Labour, Invalids and SocialAffairs, said Vietnam was now in the period of a golden populationstructure as the working age accounted for more than 58 percent.
Thecountry has managed to set up 48 fund management companies and ninebanks in charge of supervising the implementation of the insurance.
"This is the best time to implement the model, and as quickly as possible to assure lives of workers after retirement," he said.
Chairmanof the Vietnam Chamber of Commerce and Industry, Vu Tien Loc said thistype of insurance would be a solution to reduce the burden of socialfunds, increase social security and long-term benefits for businessesand workers.
It would create conditions for people to participateand get a stable source of income after retirement. It would alsocontribute to the stability of the current pension fund, he said.
Inthe 2007 to 2012 period, after six adjustments, the average pension hadincreased by 26.8 percent annually. Meanwhile, the growth rate of thesocial security fund only increased 10.1 percent annually.
Thiscaused pressure on the current social insurance fund and the Statebudget. It was forecast to increase rapidly in the future.
Infact, there were a number of businesses implementing the model ofinsurance for their employees, he said. However, due to a shortage ofadequate legal framework, these businesses had applied them in differentways.
He said, authorised agencies should work together tocomplete the legal framework and disseminate them to increase theawareness of businesses and employees about the benefits of theinsurance.
According to Loc, the regulation saying that eachenterprise was allowed to pay 1 million VND (47 USD) for each worker wasreasonable as most were small-and-medium sized enterprises. This wouldassure benefits to labourers in these enterprises.
Pensioninsurance is a voluntary form of savings to fund retirement, usuallysupported by employers and encouraged by the government through taxbenefits.-VNA
Speaking at a recent conference onvoluntary pension insurance, Truong Giang, Deputy Director of the SocialInsurance Department under the Ministry of Labour, Invalids and SocialAffairs, said Vietnam was now in the period of a golden populationstructure as the working age accounted for more than 58 percent.
Thecountry has managed to set up 48 fund management companies and ninebanks in charge of supervising the implementation of the insurance.
"This is the best time to implement the model, and as quickly as possible to assure lives of workers after retirement," he said.
Chairmanof the Vietnam Chamber of Commerce and Industry, Vu Tien Loc said thistype of insurance would be a solution to reduce the burden of socialfunds, increase social security and long-term benefits for businessesand workers.
It would create conditions for people to participateand get a stable source of income after retirement. It would alsocontribute to the stability of the current pension fund, he said.
Inthe 2007 to 2012 period, after six adjustments, the average pension hadincreased by 26.8 percent annually. Meanwhile, the growth rate of thesocial security fund only increased 10.1 percent annually.
Thiscaused pressure on the current social insurance fund and the Statebudget. It was forecast to increase rapidly in the future.
Infact, there were a number of businesses implementing the model ofinsurance for their employees, he said. However, due to a shortage ofadequate legal framework, these businesses had applied them in differentways.
He said, authorised agencies should work together tocomplete the legal framework and disseminate them to increase theawareness of businesses and employees about the benefits of theinsurance.
According to Loc, the regulation saying that eachenterprise was allowed to pay 1 million VND (47 USD) for each worker wasreasonable as most were small-and-medium sized enterprises. This wouldassure benefits to labourers in these enterprises.
Pensioninsurance is a voluntary form of savings to fund retirement, usuallysupported by employers and encouraged by the government through taxbenefits.-VNA
