Insurance Enterprises Providing Pension Insurance Must Have a Minimum Capital of 1,000 Billion VND

According to current regulations, retirement insurance is a life insurance product implemented by the insurer to provide supplementary income for the insured upon reaching the end of their working age. When the insurer deploys a retirement insurance product, it must ensure to meet all conditions stipulated in Article 4 of Circular 115/2013/TT-BTC as follows:

Illustrative image (source: internet)

- Equity capital not less than 1,000 (one thousand) billion VND;- Solvency margin higher than the minimum solvency margin by 300 (three hundred) billion VND;- Establish a voluntary retirement fund as stipulated in Section 2 Chapter II of this Circular;- Information technology system to track and manage detailed transactions of the retirement insurance account;- At least 05 (five) officers directly managing the voluntary retirement fund with at least 05 (five) years of experience in managing retirement funds or insurance contract principal funds;- Agents selling retirement insurance products must meet the conditions stipulated in Article 25 of this Circular;- Retirement insurance products must be approved by the Ministry of Finance.

Circular 115/2013/TT-BTC further elucidates certain regulations on retirement insurance as follows:

- Retirement insurance includes individual retirement insurance and group retirement insurance for workers. In the case of group retirement insurance, the policyholder is the employer, and the workers will receive all the benefits of the insurance contract after a certain period as agreed upon by the parties and recorded in the insurance contract.- Basic insurance benefits include periodic retirement benefits and risk insurance benefits.- Each insured person under an individual retirement insurance contract or group retirement insurance contract has a separate retirement insurance account as stipulated in this Circular.

See the full text of the regulation at Circular 115/2013/TT-BTC effective from October 15, 2013.

Thu Ba

>> CLICK HERE TO READ THIS ARTICLE IN VIETNAMESE