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THE MINISTRY OF
LABOR, WAR INVALIDS AND SOCIAL AFFAIRS
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THE SOCIALIST
REPUBLIC OF VIETNAM
Independence - Freedom - Happiness
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No.
19/2018/TT-BLDTBXH
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Hanoi, October
30, 2018
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CIRCULAR
ON
GUIDELINES FOR FORMULATION OF AGREEMENT ON PARTICIPATION IN PENSION ADDITIONAL
VOLUNTARY CONTRIBUTION SCHEME AT ENTERPRISES
Pursuant to Government's Decree No.
14/2017/ND-CP dated February 17, 2017 defining the functions, tasks, entitlements
and organizational structure of the Ministry of Labor, War Invalids and Social
Affairs;
Pursuant to Government's Decree No.
88/2016/ND-CP dated July 1, 2016 on pension additional voluntary contribution
scheme;
At the request of the Director of Department of
Social Security,
The Minister of Labor, War Invalids and Social
Affairs promulgates a Circular on guidelines for formulation of agreement on
participation in pension additional voluntary contribution scheme at
enterprises.
Chapter I
GENERAL PROVISIONS
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This Circular provides guidelines for formulation
of agreement on participation in pension additional voluntary contribution
scheme prescribed in Government's Decree No. 88/2016/ND-CP dated July 1, 2016
on pension additional voluntary contribution scheme (hereinafter referred to as
Decree No. 88/2016/ND-CP).
Article 2. Regulated entities
1. Employees aged 15 or older who have worked under
labor contracts with employers.
2. Employers which are enterprises, agencies,
organizations, cooperatives, household businesses, persons hiring and employing
employees under labor contracts.
3. Organizations and individuals relevant to
pension additional voluntary contribution schemes (hereinafter referred to as
AVC schemes).
Chapter II
FORMULATING AND SIGNING
AGREEMENTS
Article 3. Agreement on
participation in AVC scheme
1. Agreement on participation in AVC scheme
(hereinafter referred to as Agreement) means a written agreement between the
employee and the employer on contribution responsibility, rights and
obligations of each participant in the AVC scheme.
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Article 4. Rules for concluding
Agreement
1. Voluntariness, equality, amicability,
cooperation, and truthfulness.
2. Free to conclude Agreement which does not go
against the law, collective bargaining agreement and social ethics.
Article 5. Content of Agreement
An Agreement of AVC scheme shall be made as
prescribed in Point b Clause 2 Article 8 of Decree No. 88/2016/ND-CP, which
contains the following:
1. Name of the AVC scheme which the employee
chooses to participate in as prescribed in Article 6 hereof.
2. Basic information of the AVC scheme as
prescribed in Article 7 hereof.
3. Validity period of the Agreement as prescribed
in Article 8 hereof.
4. Employer’s contributions, contribution frequency
and duration prescribed in Article 9 hereof.
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6. Employee’s rights and obligations upon
participation in AVC scheme prescribed in Article 11 and Article 12 hereof.
7. Employer’s rights and obligations upon
participation in AVC scheme for their employees’ benefits prescribed in Article
13 and Article 14 hereof.
8. Matters that the employee authorizes the
employer prescribed in Article 15 hereof.
9. Process of changing contents in the Agreement
(if any).
10. Cases of temporary suspension or suspension
from participation in the AVC scheme prescribed in Article 16 and Article 17
hereof.
11. Other agreements between the employee and the
employer not in contrary to laws and regulations (if any).
Article 6. Name of AVC scheme
1. Based on the labor management need and financial
resources, the employer may build up single or multiple AVC scheme(s) to make
contributions to the pension fund for employees.
2. An employee shall choose to participate in an
AVC scheme that he/she deems that he/she is eligible for and wishes to
participate in.
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Basic information of the AVC scheme in the
Agreement includes:
1. Eligible entities and conditions for
participation in the AVC scheme.
2. Employer’s commitment on minimum contribution
rate when the employee participates in the AVC scheme.
3. The pension fund management company chosen by
the employer.
4. Beneficiary’s eligibility criteria, plans for
payment from pension fund.
Article 8. Validity period of
Agreement
1. When concluding an Agreement, the employee and
the employer must specify the validity period of the Agreement, start time and
end time of the AVC scheme.
2. The end time of the AVC scheme cannot come after
the termination date of the labor contract between the employer and the
employee.
Article 9. Employer’s
contributions, contribution frequency and duration
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1. Contribution is determined as an absolute amount
or a percentage on the employee’s salary. The employer’s contribution may not
less than the minimum contribution prescribed in Clause 2 Article 7 hereof.
2. Contribution frequency may be once a month, once
every two months, once every three months, or another frequency at the
employer’s discretion in conformity with its capacity and need.
3. Contribution duration shall be mutually agreed
by the employer and the employee in conformity with the AVC scheme which is
built up by the employer and chosen by the employee. The contribution duration
shall be specified in the agreement.
Article 10. Employee’s
contribution rate, frequency, duration and method
If an employee jointly making contributions to the
pension fund, his/her contribution rate, frequency, duration and method shall
be determined as follows:
1. Contribution amount is determined as an absolute
amount or a percentage on the employee’s salary.
2. Contribution frequency may be once a month, once
every two months, once every three months, or another frequency at the
employee’s discretion in conformity with its capacity and need.
3. Contribution duration shall be mutually agreed
by the employer and the employee in conformity with the AVC scheme which is
built up by the employer and chosen by the employee. The contribution duration
shall be specified in the agreement.
4. The employee makes contributions to the pension
fund through the employer by having the employer withhold his/her contribution
from his/her monthly salary.0}
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When an employee enters into an Agreement, he/she
shall have the rights to:
1. Decide to participate or stop participating in
the AVC scheme.
2. Decide his/her contribution rate, frequency,
duration, method and any change (if any) in conformity with the AVC scheme
which is established by the employer and chosen to participate by the employee.
3. Enjoy all benefits prescribed in the AVC scheme
in which he/she participates, contents in the Agreement and in accordance with
laws and regulations.
4. Come into an agreement with the employer to
change the contents of the Agreement or request the employer to fulfill
contents as committed in the Agreement and the AVC scheme.
5. Receive the employer’s contribution and the
investment from this contribution in a case where the employer unilaterally
stops participating in the AVC scheme.
6. Unilaterally terminate execution of the
Agreement.
7. Other rights as agreed upon with the employer
and as per the law.
Article 12. Obligations of
employees
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2. Notify the employer at least 5 working days of
any change to the contribution rate, frequency, duration and method; at least 3
working days of the temporary suspension or suspension from execution of the
Agreement.
3. Other obligations as agreed upon with the
employer and as per the law.
Article 13. Rights of
employers
1. Decide their part of contribution rate, frequency,
duration.
2. Come into agreement with the employee on change
to contents of the Agreement in conjunction with their obligations and duties.
3. Receive their contributions for the employee and
investment from these contributions in a case prescribed in the AVC scheme and
the Agreement.
4. Unilaterally terminate the Agreement in a case
where the employee commits legal violations as to the AVC scheme or regulations
on AVC scheme of the enterprise.
5. Other rights as agreed upon with the employee
and as per the law.
Article 14. Obligations of
employers
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2. Abide by and perform commitment in the Agreement
and prescribed by law.
3. Pay the contribution withheld from the employee’s
salary (if any).
4. Follow procedures with the pension fund
management company in order for the employee to enjoy or forward the
contribution to the fund.
5. Other obligations as agreed upon with the
employee and as per the law.
Article 15. Employee’s
authorization
The employee shall authorize the employer to
perform the following tasks:
1. Enter into an agreement on pension fund
participation with a pension fund management company.
2. Choose investment plans as provided in the
charter of pension fund.
3. Pay related fees and costs as provided in the
charter of pension fund.
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The employee and the employer reach an agreement on
temporary suspension from participation in the AVC scheme in case of one of the
following cases:
1. The employee and the employer reach an agreement
on suspension from the Agreement.
2. The employee delays the labor contract.
Article 17. Cases of suspension
from participation
The employee and the employer reach an agreement on
suspension from participation in the AVC scheme in case of one of the following
cases:
1. The Agreement expires but they do not agree to
extend or re-sign the Agreement.
2. The employee and the employer agree to suspend
from participation.
3. The employee unilaterally terminates the
execution of the Agreement.
4. The employer unilaterally terminates the
execution of the Agreement.
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Chapter III
IMPLEMENTATION
Article 18. Entry into force
This Circular comes into force as of December 15,
2018.
Article 19. Implementation
1. Employers, employees, pension fund management
companies and relevant entities shall implement this Circular.
2. Difficulties that arise during the
implementation of this Circular should be reported to the Ministry of Labor,
War Invalids and Social Affairs for consideration./.
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