At the Decree No. 88/2016/ND-CP dated July 01, 201 of the Government on voluntary supplemental retirement program. The Government encourages developing voluntary supplemental retirement programs by means of incentive policies provided for in laws on taxation and investment results and payment rates made by retirement funds shall not be guaranteed by the Government.
Also in accordance with this Decree, Each individual may have one or several individual retirement accounts issued at the same time and managed by different retirement fund management companies. An individual retirement account shall be used for receiving contributions made by the fund participant and the employer (if any); receiving earnings from investment after deducting the retirement fund’s operating expenses which must be incurred by each individual retirement account as determined in accordance with the retirement fund’s charter; making payment of payables to the State budget as regulated; making payments to fund participant and the employer. Particularly, it is not allowed to use the individual retirement account for transfer; mortgage and handle bankruptcy procedures of the retirement fund management company, the supervisory bank or the depository institution.
The retirement fund management company must clarify investment policies in the retirement fund’s charter, the retirement fund’s portfolios shall consist of deposits at commercial banks that meet requirements on the retirement fund’s investment policies specified in the retirement fund’s charter; government bonds, government backed bonds and local authority bonds; securities investment fund certificates under conditions on investment policies specified in the retirement fund’s charter. The proportion of investments in government bonds must be at least 50% of total asset value of the retirement fund.
This Decree takes effect on July 01, 2016.
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