Currently, the minimum participation period to receive voluntary social insurance pension is 20 years. This is the minimum and relatively long level, making many employees hesitate to participate. Although we know that social insurance is the "savings" of employees, so it takes a relatively long time to participate to receive benefits, the longer the participation period, the higher the benefits. However, to serve the goal of covering and expanding social insurance to a large number of employees, in this period we can study to shorten the minimum participation period of some employees to receive pension insurance. “Amend regulations on the minimum social insurance participation period to enjoy retirement benefits in a flexible manner… Amend the conditions for enjoying retirement benefits in the direction of gradually reducing the minimum number of years of social insurance contribution to enjoy retirement benefits from 20 years to 15 years, towards 10 years with the benefit level calculated appropriately to create conditions for elderly workers with low social insurance participation years to access and enjoy social insurance benefits ” [16].
8.5% said they would participate in voluntary social insurance if there were adjustments and supplements to regulations that were considered unreasonable; 80% of people intending to participate in voluntary social insurance wanted to reduce the current 20-year payment period; 56.9% of experts in the social insurance field when surveyed also said that the minimum time to participate in voluntary social insurance should be reduced to 15 years to attract employees to participate.
Table 4.1: Evaluation of reasons why voluntary social insurance is not attractive
Reason
Number (people) | Rate (%) | |
Because the closing time is too long | 59 | 46 |
Because there are only two modes | 46 | 36 |
Because the closing level is too high | 15 | 11.7 |
Because of complicated procedures | 8 | 6.25 |
Total | 128 | 100 |
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Current voluntary social insurance participation of workers in Doan Hung district, Phu Tho province - 15 -
Regulations of Vietnamese Law on Voluntary Social Insurance -
Current Status of Voluntary Social Insurance Law Regulations -
Voluntary Social Insurance Revenue in Phu Yen Province in the Period 2008-2014 -
Experience in Implementing Voluntary Social Insurance Policy
Source: Expert survey by thesis author
Thus, it can be seen that cost is not the reason why employees hesitate to participate in voluntary social insurance because their willingness to pay is relatively high. The reason why most employees are still considering is that the time to participate in voluntary social insurance is too long, with 46% of respondents answering the survey.
This also coincides with the survey results of the thesis on the subjects of social insurance officers at all levels.
To effectively implement this solution, technical measures are very important to calculate reasonable contribution and benefit levels. The basis of this solution is that we will implement it based on the principle of "pay more, receive more, pay less, receive less". When employees choose a short contribution period, they must accept a low benefit level, and if they want to receive a high level, the contribution level must be high. In reality, life insurance companies have implemented this model very effectively. Currently, the minimum participation level of life insurance companies is usually from 10 to 12 years, in the context that those companies still have to operate the apparatus and pay salaries to employees. Therefore, this solution is completely feasible in reality under conditions such as effective management of the apparatus, investment with high interest rates, saving and effective use of resources.
Second, perfect the content of propaganda policies on voluntary social insurance.
Many studies have shown that the reason why employees do not have information and knowledge about voluntary social insurance is one of the biggest obstacles to expanding coverage and developing voluntary social insurance policies. The biggest reason why employees do not participate in voluntary social insurance is not because they cannot afford the costs, but because they do not understand the content, benefits and methods of participating and enjoying voluntary social insurance. The level of development of commercial insurance is a testament to this problem. Commercial insurance has a large team of consultants, approaching and persuading each employee to participate in commercial insurance. Meanwhile, the Vietnam Social Security agency does not have enough resources to carry out these activities. Propaganda activities are not yet deep and wide; they have not reached many employees to disseminate information and content of voluntary social insurance policies. Therefore, employees still have doubts, distrust and do not want to participate in voluntary social insurance.
To overcome the above problems, it is necessary to focus more on propaganda activities about voluntary social insurance policies.
Firstly , Vietnam Social Security needs to innovate propaganda content from focusing on propaganda and dissemination of policy and legal content to propaganda about benefits,
The role, significance and reform contents of social insurance policy aim to create consensus among cadres, party members and people in the process of amending and perfecting social insurance policy.
The content of propaganda on voluntary social insurance policy must emphasize the role and significance of voluntary social insurance, which is to protect the income of employees and their families. It helps them avoid income risks, ensure their lives, and partially reduce the burden of social security for them, especially when they are old. In some cases, employees do not want to participate in voluntary social insurance because they still have the mentality of relying on their children to take care of them when they are old, or some people have the mentality of accepting future risks in terms of income. On the contrary, many studies have shown that if employees have a precautionary mentality and moral responsibility (not wanting to be a financial burden for their children), their motivation to participate in voluntary social insurance will be very high. Therefore, when carrying out propaganda activities on voluntary social insurance for employees, it is necessary to emphasize the risk factor when they are old and have no income, thereby enhancing their moral responsibility and risk prevention mentality.
The forms of propaganda must be diverse, suitable to the characteristics and specific nature of each target group and region; increase the use of multimedia communication tools, apply high technology, and social networks to social insurance propaganda work. Continue to promote effective forms of propaganda such as organizing seminars on voluntary social insurance to each unit such as residential groups, villages, and hamlets; increase the duration of propaganda on central and local radio and television; strengthen propaganda and mobilization of commune, ward, and village cadres.
Distribute leaflets on policy content to each citizen. Regarding propaganda methods, harmoniously combine regular propaganda with campaign propaganda, prioritizing campaign propaganda during the institutionalization phase of social insurance policy reform.
Second , promote regulations to integrate propaganda on social insurance and voluntary social insurance policies into the content of Civic Education subjects from grade 9 and above. From grade 9 of junior high school, students are old enough to enter working age.
(15 years old) and also old enough to participate in voluntary social insurance according to the law. However, most employees do not have knowledge about social insurance in general and voluntary social insurance in particular. In recent years, media channels such as newspapers, radio and television have invested in propaganda activities about voluntary social insurance knowledge but the results have not been high. Therefore, research to build a new propaganda channel about social insurance in general and voluntary social insurance in particular is a requirement. The solution must be a propaganda channel that can reach the largest number of subjects and is inexpensive, so through the system of general education institutions is a suitable choice. The solution is to integrate the content of voluntary social insurance policies into the content of the subject of Civic Education from grade 9 and above. This is a necessary preparation for students before entering the workforce. The subject content can be integrated into the content of training and education of financial management skills for employees. Currently, the 9th grade Civic Education textbook has content on the Right to Freedom of Business and the obligation to pay taxes of citizens, so it is possible to add content on Social Insurance and the rights and obligations of employees towards Social Insurance. The Ministry of Labor, Invalids and Social Affairs can propose and coordinate with the Ministry of Education and Training to implement this content.
Third , the Government, the Ministry of Labor, Invalids and Social Affairs, Vietnam Social Security and coordinating agencies such as Vietnam Television, Voice of Vietnam, and media agencies need to pay special attention to strengthening measures to prevent and handle communication crises about social insurance. Incidents and bad information about the social insurance system such as losses of social insurance funds, cases in the social insurance system or unofficial information, even completely incorrect information about social insurance in general and voluntary social insurance in particular, are widespread on the media and social networks, creating negative effects that spread quickly among the people, creating communication crises about social insurance. Therefore, it is necessary to proactively grasp feedback information about social insurance policies and implement social insurance policies in order to forecast possible social insurance communication crises and propose solutions to prevent and handle communication crises about social insurance if they occur. Proactively informing and propagating to promptly handle communication crises
Information about social insurance and active propaganda after the media crisis to firmly strengthen people's trust in the social insurance system.
Fourth , Vietnam Social Security needs to increase funding for voluntary social insurance propaganda activities. Funding for social insurance propaganda is currently allocated in the annual social insurance management cost estimates of units according to regulations. Currently, the forms of propaganda for voluntary social insurance policies are very rich and diverse, but the ability to reach the target audience is still limited. Therefore, in addition to investing in propaganda content, it is necessary to increase investment in propaganda funding so that propaganda activities can take place continuously in many areas of space and time. Remuneration for human resources doing propaganda work and for people participating in propaganda also needs to be increased, initially using remuneration as a "leverage" for propagandists and employees participating in voluntary social insurance.
Third, tighten the conditions for receiving one-time voluntary social insurance benefits, along with solutions to support employees in difficulty . Normally, employees often want to receive one-time social insurance benefits when they lose their jobs, stop and reduce their income, so they cannot continue to participate in social insurance. Therefore, receiving one-time social insurance benefits is a "lifesaver" for them in difficult times, although many people are aware of the disadvantages of receiving one-time social insurance benefits but still choose them because there is no other solution. Therefore, to deal with the wave of receiving one-time social insurance benefits, solutions from many sides are needed:
- Strengthen propaganda so that employees clearly understand the benefits they will lose when choosing to receive one-time social insurance benefits such as: not being able to add the social insurance payment period; the amount of social insurance received is less than the payment amount; not being able to receive funeral and death benefits upon death; not being able to enjoy free health insurance card benefits when they retire in order to continue to maintain voluntary social insurance payments.
- However, in cases where employees are really in difficulty, there needs to be a solution to help them solve their difficulties so that they do not have to choose to receive social insurance in one lump sum. The proposed solution is to have a regulation allowing employees to mortgage their social insurance books to credit institutions to borrow money. The amount of money participating in voluntary social insurance can be used as collateral or deposit when transacting with financial institutions and credit institutions.
The country follows the principle of "triple agreement" between voluntary social insurance participants, social insurance agencies and credit financial institutions. Accordingly, the more voluntary social insurance participants pay and the longer the number of years, the more credit capital they can borrow. In this case, social insurance agencies and financial institutions must work together to resolve the relationships arising in this activity. This solution creates conditions for employees to overcome temporary difficulties and helps them have the opportunity to continue participating in social insurance. The biggest obstacle of this solution is the emergence of additional operations between social insurance agencies and credit institutions. Therefore, implementing this solution requires high determination from leadership and state management agencies to create conditions and support employees.
4.2.2. Solutions for developing voluntary social insurance funds
Firstly, improve investment efficiency and transparency of the social insurance fund.
The Social Insurance Fund is the largest public financial fund in Vietnam, actively contributing to the development and ensuring social security of the country. In the context of population aging and the increasing need for social security, the Social Insurance Fund plays an increasingly important role, needs to be stable, balanced, and sustainable in the long term to meet the responsibility of paying current and future benefits to participants.
Currently, the forms of investment in the social insurance fund ensure high safety but are not diversified, mainly focusing on the government bond channel, investment in national key projects accounts for a very small proportion. Therefore, in the coming time, facing the risk of population aging, increasing life expectancy after retirement and decreasing birth rate, the social insurance fund must be managed, used and invested more effectively.
According to the content of Resolution No. 28-NQ/TW of the Party Central Committee on reforming social insurance policies towards universal, multi-layered, and flexible social insurance. Reforming the management of social insurance fund investment is one of 11 important reform contents with the motto: "Diversifying the portfolio and structure of social insurance fund investment according to the principles of safety, sustainability, and efficiency; prioritizing investment in government bonds, especially long-term government bonds; researching and gradually expanding to areas with high profitability; gradually and systematically investing a part of the Fund's idle money through investment trust in the domestic market and
international”. The investment portfolio of the Social Insurance Fund can be assets, projects or areas in which the Social Insurance can use its idle capital to invest. Diversifying investment by portfolio helps the Social Insurance to disperse risks, increasing the ability to preserve capital. Diversifying the investment portfolio will help the Vietnam Social Insurance industry have more opportunities to choose assets or projects to invest in. Under the current regime, the investment portfolio of the Vietnam Social Insurance is still very small, the ability of the Vietnam Social Insurance to choose to invest idle capital is very limited, so the opportunity to use capital to invest for profit is not much.
In addition, information about the social insurance fund needs to be public and transparent so that employees and supervisory agencies can know. In reality, social insurance participants often have a lack of trust in the social insurance system because they do not know how their participation money is used and managed. In the management of the social insurance fund, there are also cases of fund losses of significant value. These things reduce people's trust in the social insurance system. Therefore, the solution is to be public and transparent in fund management; increase the investment efficiency and profitability of the fund to create a basis for implementing effective revenue and expenditure regimes. Every year, the Vietnam Social Insurance agency must publicize the fund on mass media and publicize it to each voluntary social insurance participant using information technology solutions such as: sending emails, sending links to access the database, and sending notification messages. These measures demonstrate the spirit of transparency and reliability of the social insurance agency.
Second, publicize and make transparent the process of participating in voluntary social insurance.
Vietnam Social Security has focused on building and putting into use a professional software system with the goal of comprehensively computerizing the professional activities of the industry, unifying from the central to local levels to publicize and make transparent the activities of the Social Security agency in the network environment, improving the capacity and efficiency of serving people and employers, including software: Electronic archive of the Social Security industry to digitize the Industry's archived documents; Collecting and managing card books; Centralized accounting; Policy review; Fund investment management; Centralized drug bidding management. Currently, the Health Insurance Appraisal Information System of the Industry
Currently, it has connected with more than 12,000 health insurance examination and treatment facilities from commune to central level nationwide (nearly 100%). The system has received electronic medical examination and treatment records requesting payment from millions of people using health insurance examination and treatment with a monthly data connection rate of more than 95%. Therefore, the Social Insurance must continue to strengthen computerization and information technology in all stages and services of the Social Insurance to provide social insurance services quickly, conveniently and most effectively for social insurance participants like the Health Insurance system.
From the perspective that voluntary social insurance participants are also customers, Vietnam Social Security needs to enhance customer care and create the most favorable conditions for employees before and after participating in voluntary social insurance. Currently, most voluntary social insurance participants rate the participation procedures as very convenient. However, there are still some issues that need to be further improved. Employees have concerns such as being scammed by collection agents, misappropriating insurance premiums, and not knowing if there will be any problems during the participation process. Currently, employees have only just started paying premiums and cannot monitor their voluntary social insurance participation process, so they are not yet assured and confident in the social insurance system. Therefore, Vietnam Social Security can implement technical and logistical measures to enhance customer care for voluntary social insurance participants, implementing the principles of publicity and transparency. Currently, Vietnam Social Security has operated applications to monitor the social insurance participation process of participants. However, for freelance workers who do not have suitable conditions to use these applications, additional customer care activities are needed. For example, some employees participating in the survey proposed the following contents:
- Debt reminder message to customers, content is the amount due during the payment period.
- Message confirming the amount paid by the customer, to avoid cases where insurance employees or agents cheat customers and social insurance agencies.
- Annual notification of the amount and number of months of participation to the customer's registered phone number.