Early Retirement Policy: 4 New Groups Benefiting Under Decree 67

According to Decree 67, there have been adjustments and additions to the subjects entitled to the early retirement policy during the streamlining of the political system. This Decree amends and supplements Article 2 on the subjects of application, implemented according to the conclusion of the Politburo. Below is detailed information about the 4 newly added groups.

Group Of Cadres, Civil Servants, And Public Employees Holding Leadership And Management Positions Who Wish To Retire

This group includes cadres, civil servants, and public employees currently holding leadership and management positions in agencies, organizations, and units who wish to retire early. The purpose of this policy is to facilitate the rearrangement of the number of cadres, civil servants, and public employees in leadership and management positions in accordance with legal regulations during the reorganization of the political system’s apparatus.

Group Of Cadres, Civil Servants, Public Employees, Employees, And Armed Forces Members Approaching Retirement Age

This is the group of cadres, civil servants, public employees, employees receiving salaries from the state budget before January 15, 2019, and armed forces members who have 5 years or less until their retirement age. They work in agencies, organizations, and units not directly affected by the reorganization of the apparatus but still required to implement staff reduction, restructuring, and quality improvement of the workforce.

Group Of Individuals Working At Associations Assigned Tasks By The Party And The State

This group includes individuals working within the payroll quota and receiving salaries from the state budget at associations assigned tasks by the Party and the State at the central, provincial, and district levels. They are directly affected by the implementation of the arrangement, consolidation, and merger of the organizational apparatus.

Group Of Cadres Not Meeting The Age Requirement For Re-Election Or Reappointment, And Other Special Cases

This group includes several specific subjects:

• Cadres who do not meet the age requirement for re-election or reappointment.
• Cadres who meet the age requirement for re-election or reappointment at the same level of Party Committee, with a remaining working period of 2.5 years (30 months) to 5 years (60 months) until the prescribed retirement age.
• Cadres participating in Party Committees at various levels who must conclude their activities and consolidate the organizational apparatus, with 5 years or less until retirement age, who wish to retire early to facilitate the arrangement of Party Committee personnel during Party Congresses at all levels leading up to the 14th National Party Congress, and who are approved by competent authorities.

Benefits For Early Retirement Under Decree 67

Decree 67 clearly stipulates the benefits for subjects retiring early, including:

• Cases where there are 2 to 5 years remaining until retirement age: If there is sufficient working time with mandatory social insurance contributions to receive a pension, in addition to the prescribed retirement benefits, the pension rate will not be reduced due to early retirement. Simultaneously, they will receive a subsidy of 5 months of their current salary for each year of early retirement, 5 months of their current salary for the first 20 years of work with mandatory social insurance contributions, and 0.5 months of their current salary for each year of work with mandatory social insurance contributions from the 21st year onwards. If there are 15 years or more of work with mandatory social insurance contributions and they are eligible for a pension, they will receive a subsidy of 4 months of their current salary for the first 15 years of work and 0.5 months of their current salary for each year of work with mandatory social insurance contributions from the 16th year onwards.
• Cases where there are more than 5 to 10 years remaining until retirement age: If there is sufficient working time with mandatory social insurance contributions to receive a pension, the pension rate will not be reduced due to early retirement. They will receive a subsidy of 4 months of their current salary for each year of early retirement, 5 months of their current salary for the first 20 years of work with mandatory social insurance contributions, and 0.5 months of their current salary for each year of work with mandatory social insurance contributions from the 21st year onwards. If there are 15 years or more of work with mandatory social insurance contributions and they are eligible for a pension, they will receive a subsidy of 4 months of their current salary for the first 15 years of work and 0.5 months of their current salary for each year of work with mandatory social insurance contributions from the 16th year onwards.
• Cases where there are 2 to 5 years remaining until retirement age and have 15 years or more of working in heavy, hazardous, dangerous, or especially heavy, hazardous, dangerous occupations, or working in areas with exceptionally difficult socio-economic conditions: If there is sufficient working time with mandatory social insurance contributions to receive a pension, the pension rate will not be reduced due to early retirement. They will receive a subsidy of 5 months of their current salary for each year of early retirement, 5 months of their current salary for the first 20 years of work with mandatory social insurance contributions, and 0.5 months of their current salary for each year of work with mandatory social insurance contributions from the 21st year onwards. If there are 15 years or more of work with mandatory social insurance contributions and they are eligible for a pension, they will receive a subsidy of 4 months of their current salary for the first 15 years of work and 0.5 months of their current salary for each year of work with mandatory social insurance contributions from the 16th year onwards.

Funding For Policy Implementation

Decree 67 also adjusts the funding for the implementation of the policy for public employees and employees in public non-business units. Specifically:

• For public non-business units that ensure their own regular and investment expenditures, and public non-business units that ensure their own regular expenditures: Funding comes from revenue from their professional activities and other legal revenue sources. If insufficient, they can use allocated funds according to regulations.
• For public non-business units that ensure their own regular expenditures through state orders but whose service prices do not fully account for the factors needed to implement the policy: The funding will be supplemented by the state budget.

Abolition Of Regulations On Additional Support Policies From Local Authorities

Decree 67 has abolished Clause 6 of Article 19, according to which the People’s Committees of provinces and centrally-run cities are no longer allowed to submit to the People’s Councils at the same level for the issuance of additional support policies for subjects under their management based on the balance of the local budget.

In summary, Decree 67 has expanded the subjects eligible for the early retirement policy during the streamlining of the state apparatus, while clearly stipulating the benefits and funding for implementation, bringing significant changes to social welfare policy.