Ministry of Finance points out inadequacies in regulations on supplementary pension insurance

Xuyên Đông |

Contributing opinions on the amended Law on Social Insurance, the Ministry of Finance pointed out inadequacies in the regulations on supplementary pension insurance.

In the report and comments on the amended Law on Social Insurance, the Ministry of Finance said that the Law on Social Insurance No. 41/2024/QH15 has stipulated the principles for implementing supplementary pension insurance and assigned the Government to specify details.

According to the Ministry of Finance, pension fund management enterprises started establishing pension funds from 2021. By the end of 2025, 7 funds were established with a total net asset value of nearly 2,210 billion VND, an increase of 53% compared to the end of 2024 and 26 times higher than in 2021.

The entire pension fund system by the end of 2025 has 28,538 participants, an increase of 17.1% compared to 2024. In 2025, the total amount contributed to pension funds reached 720.77 billion VND, an increase of 26.2% compared to 2024 (570.9 billion VND). The total amount paid reached 67.85 billion VND, an increase of 104% compared to 2024 (33.2 billion VND).

By the end of 2025, the total asset value of the pension fund system reached 2,274 billion VND, an increase of 47% compared to the end of 2024 and 26.5 times higher than in 2021.

The asset structure includes 49.69% of government bonds, 8.01% of cash and cash equivalents, 15.18% of securities investment fund certificates and 26.61% of receivables from interest and dividends received.

The Ministry of Finance assesses that the full and synchronous promulgation of regulations on supplementary pension insurance and related tax policies has laid the foundation for the formation of a voluntary supplementary pension fund system in Vietnam, contributing to diversifying social security programs and reducing the burden on the state budget in the long term.

According to regulations, supplementary pension insurance is organized according to a fund model formed from the voluntary participation of employers and employees.

Current regulations require public disclosure of information about the retirement program, creating a mechanism for participants to fully access information about contributions and the value of personal retirement accounts.

The Ministry of Finance also said that since 2016, the Ministry has coordinated with ministries and sectors to review dossiers and issue Certificates of eligibility for business of voluntary supplementary pension fund management services for 4 enterprises including Dragon Capital Vietnam Investment Fund Management Company, MB Investment Fund Management Company, Vietcombank Investment Fund Management Company and SSI Investment Fund Management Company.

However, the Ministry of Finance said that the Law on Social Insurance No. 41/2024/QH15 no longer stipulates allowing employees or individuals to directly participate in supplementary pension insurance as previously stipulated in the Law on Social Insurance 2014, Decree No. 88 and international practices. According to current regulations, participation must be carried out through labor-using enterprises.

According to the Ministry of Finance, this regulation leads to cases where employees quit their jobs and will have to stop the supplementary pension insurance program and are not allowed to continue maintaining their accounts, thereby affecting the rights of participants.

At the same time, individuals with high incomes but without labor contracts with employers, even if they need to participate in voluntary pension programs, cannot participate in supplementary pension insurance.

The Ministry of Finance also said that attracting people to participate in long-term financial products such as supplementary pension insurance funds still faces difficulties due to people's limited awareness of financial products.

Meanwhile, investor and consumer confidence in the financial market has declined after a number of violations and market fluctuations.

The Ministry of Finance proposes to amend the Law on Social Insurance in the direction of allowing individuals to directly participate in supplementary pension insurance on a voluntary basis without being required to go through employers, as previously stipulated in the Law on Social Insurance in 2014 and in accordance with international practices.

The Ministry of Finance proposes to supplement Clause 5, Article 2 of the revised Law on Social Insurance in the direction of stipulating: "Extended pension insurance is a type of voluntary insurance according to market principles to supplement the pension regime in compulsory social insurance, with a mechanism to create a fund from contributions of employers and employees".

The Ministry of Home Affairs said it has received this opinion in the draft.

Xuyên Đông
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