THE MINISTRY OF FINANCE
Circular No. 115/2013/TT-BTC dated August 20, 2013 of the Ministry of Finance on guiding pension insurance and voluntary pension fund
Pursuant to Law on insurance business No. 24/2000/QH10 dated December 09, 2000;
Pursuant to Law on amending and supplementing a number of articles of Law on insurance business No. 61/2010/QH12 dated November 24, 2010;
Pursuant to Government’s Decree No. 45/2007/ND-CP dated March 27, 2007, detailing implementation of a number of Articles of the Law on insurance business;
Pursuant to Government’s Decree No. 118/2008/ND-CP dated November 27, 2008, defining the functions, tasks, powers and organizational structure of the Ministry of Finance;
At the proposal of Director of the insurance management and supervision Department;
The Minister of Finance promulgates the Circular guiding pension insurance and voluntary pension fund,
Chapter 1.
GENERAL PROVISIONS
Article 1. Scope of regulation and subjects of application
1. This Circular guides the implementation of pension insurance and voluntary pension fund as prescribed in Clause 1 Article 1 of the 2010 Law on amending and supplementing a number of articles of Law on insurance business.
2. This Circular applies to life insurers carrying out pension insurance (hereinafter abbreviated to insurers) and relevant individuals and organizations on the territory of the Socialist Republic of Viet Nam.
Article 2. Pension insurance
1. Pension insurance is a product of life insurance which is performed by insurers with the aim to provide an additional income to insured persons upon they passed the working age.
2. Pension insurance includes pension insurance for each individual and pension insurance for group of laborers. Case of pension insurance for a group of laborers (hereinafter referred to as the for-group pension insurance), the insurance buyer will be the employer, laborers will be received all rights and benefits of insurance contract after a defined time according to agreements between parties and stated in insurance contract.
3. On the basis of insurance premium payment of the insurance buyer, the insured person will begin receiving rights and benefits of pension insurance when reaching age as agreed in insurance contract, but not less than 55 (fifty five) years old for female and 60 (sixty) years old for male.
4. The basic insurance rights and benefits include the periodical pension rights and benefits and rights and benefits of risk insurance.
5. Each insured person according to contract of individual pension insurance or contract of for-group pension insurance will has a separate pension insurance account as prescribed in this Circular.
Article 3. Voluntary pension fund
1. Voluntary pension fund is formed from insurance premium and is a collection of pension insurance accounts of the insured persons.
2. When carrying out pension insurance, the insurers must set up voluntary pension fund, monitor, split it and make accounting separately revenue, cost, assets and capital source of voluntary pension fund from other policyholders' funds and owners' funds.
Article 4. Conditions for the insurers carrying out products of pension insurance
When carrying out products of pension insurance, the insurers must meet the following conditions:
1. Equity capital is not less than 1,000 (one thousand) billion VND;
2. Solvency margin is higher than the minimum solvency margin with a minimum difference of 300 (three hundred) billion VND;
3. To set up voluntary pension fund as prescribed in section 2 Chapter II of this Circular;
4. Information technology system for monitoring and managing in details each transaction of pension insurance accounts;
5. There are 05 (five) officers minimally in charge of managing voluntary pension fund with at least 05 (five) experience years on managing insurance pension funds or policyholders' funds;
6. Agents selling products of pension insurance meet conditions specified in Article 25 of this Circular;
7. Products of pension insurance have been approved by the Ministry of Finance.
Chapter 2.
SPECIFIC PROVISIONS
SECTION 1. PROVISIONS ON PRODUCTS OF PENSION INSURANCE
Article 5. The basic insurance rights and benefits of pension insurance product
1. The insurers may take the initiative in designing products of pension insurance but must include periodical pension rights and benefits, and rights and benefits of risk insurance, as prescribed in Clause 2 and Clause 3 of this Article.
2. For periodical pension rights and benefits, the insurers must ensure:
a) Pension rights and benefits will be paid periodically until the insured person die or not less than 15 (fifteen) years, depending on agreements in insurance contract;
b) The insurers and the insurance buyer may agree about the level to enjoy pension rights and benefits of each period and number of periods for receiving pension rights and benefits;
c) Calculation of accumulated interests from pension rights and benefits not yet been paid to the insurance buyer, but these interests are not less than the minimum commitment investment interest rate as agreed in insurance contract.
3. For rights and benefits of risk insurance, the insurers must provide during time limit of insurance premium payment and may continue provision of these rights and benefits during time of receiving pension rights and benefits, depending on agreements in insurance contract. Rights and benefits of risk insurance include minimally the following rights and benefits:
a) The burying subsidy:
When receiving request for paying rights and benefits of insurance due to death, irrespective of the death within or outside the insured scope, the insurers must pay immediately the burying subsidy to the beneficiary as agreed in insurance contract.
b) Rights and benefits of insurance for death or permanent and entire injury:
- When an insured person died or injured permanently and entirely under the insured scope and in the prescribed duration, the insurers must pay to the beneficiary an insurance amount as agreed in insurance contract.
- The insurance buyer may select the insurance amount upon entering into the insurance contract and may adjust that insurance amount during the effective duration of insurance contract as agreed in insurance contract.
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