Lacking Years of Social Insurance Contribution: How to Receive a Pension Most Quickly?

Conditions for Receiving Retirement Pension

Employees who wish to receive a retirement pension must meet two conditions regarding retirement age and years of social insurance contributions. For men, the retirement age is 60 years, and for women, it is 55 years, with a minimum of 20 years of social insurance contributions. In cases where the retirement age is met but the required number of contribution years is not, employees can choose to participate in voluntary social insurance to make up for the missing years.

Regarding the method of voluntary social insurance contributions, Article 9 of Decree 134/2015/ND-CP stipulates as follows:

1. Participants in voluntary social insurance can choose one of the following methods to contribute to the retirement and survivor funds:

a) Monthly contributions;

b) Quarterly contributions (every 3 months);

c) Biannual contributions (every 6 months);

d) Annual contributions (every 12 months);

e) Lump-sum contributions for multiple years in advance, but not exceeding 5 years per contribution;

f) Lump-sum contributions for the remaining years for participants who have met the age requirement but whose total contribution period is less than 10 years (120 months), allowing them to complete 20 years of contributions to qualify for a retirement pension.

2. In cases where participants have met the retirement age but have more than 10 years of contributions to make up, they may continue voluntary contributions under one of the methods specified in Points a, b, c, d, and e of Clause 1 of this Article until the remaining contribution period is less than 10 years. At that point, they may make a lump-sum contribution for the remaining years to qualify for a retirement pension as per Point f, Clause 1 of this Article.

Thus, depending on the number of missing contribution years, employees can choose one of the above methods to complete 20 years of contributions. If the missing contribution period exceeds 10 years, employees will contribute up to 10 years, then make a lump-sum contribution for the remaining years to qualify for the retirement pension as stipulated.

Regarding the Time of Pension Receipt

Article 6 of Decree 134/2015/ND-CP specifies the time of pension receipt as follows:

- The pension receipt time is calculated from the month immediately following the month in which the voluntary social insurance participant meets the pension eligibility conditions.

- For participants who make a lump-sum contribution for the missing years to qualify for the pension, the pension receipt time is calculated from the month immediately following the month in which the lump-sum payment is completed.

Example: In August 2016, Mrs. G turned 55 years old and had 17 years and 6 months of social insurance contributions. Mrs. G wishes to make a lump-sum contribution for the missing years to qualify for a monthly pension. In August 2016, Mrs. G completes the lump-sum payment to the social insurance agency. Therefore, Mrs. G’s pension receipt time is calculated from September 1, 2016.

Duy Thinh

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