Chương I Nghị định 88/2016/NĐ-CP: Quy định chung

Chapter I

GENERAL PROVISIONS

Article 1. Scope

1. This Decree provides for the voluntary supplemental retirement program by means of establishment of retirement funds with the voluntary contributions by fund participants and employers under the form of individual retirement accounts, the management, investment, payment and supervision of retirement funds.

2. The following activities shall not be governed by this Decree:

a) Activities of funds that are under the management of Vietnam Social Security;

b) Provision of retirement insurance products by insurance companies in accordance with regulations of the Law on insurance trading and relevant instructional documents.

Article 2. Regulated entities

1. Employees and employers as regulated in the Labor Code.

2. Individuals aged 15 years or older, working without labour contracts as referred to in the Labour Code.

3.  Voluntary supplemental retirement fund management companies.

4. Providers of services relating to the establishment, operation, management and supervision of voluntary supplemental retirement funds as referred to in this Decree.

5. Entities involved in the voluntary supplemental retirement program.

Article 3. Interpretation of terms

In this Decree, these terms shall be construed as follows:

1. A fund participant refers to an employee or individual who is prescribed in Clause 2 and Clause 3 Article 6 of this Decree and has an individual retirement account opened at the retirement fund.

2. Retirement program is the abbreviated name of the voluntary supplemental retirement program which is a social insurance policy with voluntary features for the purpose of increasing retirement savings of fund participants under individual retirement accounts used to make investments and accumulation in accordance with the law.

3. Retirement fund is the abbreviated name of the voluntary supplemental retirement fund which is a financial fund functioned to execute retirement programs and established by the contributions of fund participants and employers.

4. Individual retirement account refers to an account which is opened for a fund participant and managed by a retirement fund management company as referred to in Article 18 of this Decree.

5. Assets of a retirement fund refer to the sum of balances of individual retirement accounts of employees who participate in the same voluntary supplemental retirement program and are established from the contributions of employees and employers.

6. A retirement fund management company refers to a company that has obtained a Certificate of eligibility to provide voluntary supplemental retirement fund service.  

7. Certificate of eligibility is the short name of the Certificate of eligibility to provide voluntary supplemental retirement fund service as referred to in Article 37 of this Decree.

8. A retirement fund service covers the management of individual retirement accounts under the authorization of fund participants and employers.

9. Depository institution is selected by the retirement fund management company to receive deposited assets of that retirement fund in conformity with regulations in Article 15 of this Decree.

10. Supervisory bank is selected by the retirement fund management company to supervise activities of that retirement fund in conformity with regulations in Article 16 of this Decree.

11. Retirement age refers to the age at which the employee may retire as referred to in the Labor Code.

Article 4. Rules of voluntary supplemental retirement program

1. The participation in the voluntary supplemental retirement program of employees and individuals and/or employers (who make contributions for their employees) must be entirely voluntary.

2. Contributions of a fund participant shall include those made by his/her employer (if any) and be managed under his/her individual retirement account.

3. A fund participant is entitled to take the ownership of an individual retirement account as referred to in Clause 3 Article 18 of this Decree.  The retirement fund management company shall be entrusted with assets of that retirement fund for investments.  The retirement fund management company must manage assets of a retirement fund separately from its own assets, assets of depository institutions, those of employers and assets of other retirement funds which are also under its management.

4. Retirement fund management activities must be conducted in a transparent and openness manner.

5. Investments of the retirement fund must be carried out in conformity with regulations in this Decree and the charter of that retirement fund.

6. The pension rate is determined on the basis of individual retirement account balances at the payment time as referred to in Article 18 of this Decree.

Article 5. Government's policies on voluntary supplemental retirement program

1. The Government encourages developing voluntary supplemental retirement programs by means of incentive policies provided for in laws on taxation.

2. The Government shall manage and supervise the implementation of voluntary supplemental retirement programs as well as operations of retirement funds by adopting policies and regulations to force retirement funds to operate in a transparent and openness way in order to protect lawful rights and interest of fund participants.

3. Investment results and payment rates made by retirement funds shall not be guaranteed by the Government.