What is a voluntary pension fund? What are the regulations on the insurance premiums of a voluntary pension fund in Vietnam?
- What is a voluntary pension fund in Vietnam?
- What are the basic insurance rights and benefits of pension insurance products in Vietnam?
- What are the regulations on the insurance premiums of a voluntary pension fund in Vietnam?
- What is included in the dossier of application for carrying out pension insurance products in Vietnam?
What is a voluntary pension fund in Vietnam?
According to the provisions of Article 3 of Circular No. 115/2013/TT-BTC on voluntary pension fund in Vietnam as follows:
- Voluntary pension fund is formed from insurance premium and is a collection of pension insurance accounts of the insured persons.
- 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.
What is a voluntary pension fund in Vietnam? (Image from the Internet)
What are the basic insurance rights and benefits of pension insurance products in Vietnam?
In Article 5 of Circular No. 115/2013/TT-BTC, the basic insurance rights and benefits of pension insurance products in Vietnam include:
- 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 Article 5 of Circular No. 115/2013/TT-BTC.
- For periodical pension rights and benefits, the insurers must ensure:
+ 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;
+ 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;
+ 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.
- 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:
+ 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.
+ 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.
What are the regulations on the insurance premiums of a voluntary pension fund in Vietnam?
Insurance premiums of voluntary pension funds specified in Article 7 of Circular No. 115/2013/TT-BTC include:
- Insurance premium is a contribution into a voluntary pension fund on a periodical basis or lump-sum basis according to agreement in contract of pension insurance.
- Insurance premium paid additionally is a contribution apart from the periodical or lump-sum insurance premium already agreed in insurance contract, so as to invest in a voluntary pension fund.
What is included in the dossier of application for carrying out pension insurance products in Vietnam?
A dossier of application for carrying out pension insurance products in Vietnam is specified in Clause 2, Article 9 of Circular No. 115/2013/TT-BTC:
- Request for ratifying pension insurance product made according to form in Annex II promulgated together with Circular No. 115/2013/TT-BTC;
- Plan and explanation of plan on carrying out pension insurance product, including the following contents:
+ Main content summary of pension insurance product anticipated to carry out, including information of objective market of product, insurance rights and benefits anticipated to provide;
+ Geographical areas anticipated to carry out pension insurance product;
+ Explanation of technical material facilities ensuring for implementation of pension insurance product, including: The information technology system; accounting system; processes of recruiting, selecting, training, managing agents for distribution of products; content and programs of training the pension insurance agents; list and dossiers of officers training the pension insurance agents;
+ Base of allocation of insurance premiums;
+ The handling plan of the insurers for voluntary pension fund in cases: When clients request for payment insurance money upon happening insurance event; clients request for transfer of pension insurance accounts; the maturity day of insurance contracts and other cases as prescribed in rules, terms;
- Commitments in writing enclosed with explanation in details about the insurer’s satisfaction of conditions specified in Article 4 of Circular No. 115/2013/TT-BTC and diplomas proving qualification, capability, professional experiences of officers managing voluntary pension fund;
- Rules, terms and charge table of pension insurance product anticipated to carry out;
- Technical facilities of pension insurance product anticipated to carry out, in which clearly state the formula, method, explanation of technical base for calculation of charges and reserve of professional operation;
- Documents for introduction of products, documents illustrating for sale, form of insurance request, form of insurance certificate, and other types of papers on which clients must declare and sign, upon buying insurance.
Thus, within 30 (thirty) days after receiving a full dossier as prescribed in Clause 2 Article 9 of Circular No. 115/2013/TT-BTC, the Ministry of Finance shall have a written acceptance or refusal. In case of refusal, the Ministry of Finance shall clearly explain the reason thereof.
In case where an insurer wishes to carry out new pension insurance product other than pension insurance product already approved, dossier of application for ratifying pension insurance product will exclude documents specified in points b and c Clause 2 Article 9 of Circular No. 115/2013/TT-BTC, unless these documents have changes in comparison with documents at time when pension insurance product are ratified by the Ministry of Finance in the previous time.
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