Cases of early withdrawal from retirement insurance accounts in Vietnam

Cases of early withdrawal from retirement insurance accounts in Vietnam

According to regulations, The retirement insurance account is a separate account for each insured person that holds the accumulated premiums paid after deducting the initial fee. The account is opened, monitored, and managed by the insurer. The insured person may not withdraw from the retirement insurance account before the maturity date when he/she reaches the retirement age, as specified in the insurance policy, except for the case specified in Article 119 of Decree 46/2023/ND-CP.

Based on the provisions of Article 119 of Decree 46/2023/ND-CP, the insured is entitled to request for early withdrawal and the insurer is responsible for paying part or all of the value of the retirement insurance account in the following cases:

- The insured person has a degree of impairment from 61% or more as per applicable law.

- The insured suffers from a fatal disease as prescribed by law.

- The insured person is a Vietnamese citizen who is legally permitted to reside in a foreign country by a competent authority.

- The insured may withdraw from the retirement account early to pay off their personal loans (except for consumer loans) at a bank, provided that the loan contract must remain valid for at least 24 months before the maturity date of the retirement account.

Cases of early withdrawal from retirement insurance accounts in Vietnam (Internet image)

Regulations on transfer of retirement insurance accounts in Vietnam

Pursuant to the provisions of Article 120 of Decree 46/2023/ND-CP, if the insured person terminates their employment contract or loses their job and is no longer a member of the group-type policy, they have the following options:

- They transfer the retirement insurance account from the group-type policy to the individual-type policy with the corresponding value at the same insurer; or

- They transfer their retirement insurance account to a group-type policy of the new enterprise. The new group-type policy may be at the same insurer, or another insurer, depending on the type of the new enterprise.

In case of transfer of the retirement insurance account in the same insurer, based on the written confirmation of premium payment by the policyholder and the written request for account transfer of the insured, the insurer shall transfer the account at requested. The insurer is prohibited from charging a fee for transferring a retirement insurance account.

In case of switching to a group-type policy at a new insurer, within five working days of receiving the following: a request to transfer the retirement insurance account, and documentation showing that the beneficiary is no longer a member of the group-type policy of the old enterprise and is now a member of group-type policy of the new enterprise, the insurer must transfer the entire value of that account, up to the request date, to the new insurer, after deducting the account transfer fee (if any).

The transferred retirement account value will accrue according to the agreement in the new group-type policy.

The new insurer is prohibited from charging an initial fee for the value of the transferred retirement insurance account.

Mai Thanh Loi

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