Procedures for Closing Social Insurance Books When Dissolving a Company

In Vietnam, the consolidation of social insurance books is a critical process that ensures the proper management of an individual's social insurance records. This procedure, as outlined in Official Dispatch 3663/BHXH-THU dated November 19, 2014, is essential to maintain accurate and up-to-date social insurance information. Let's dive into the key principles related to the consolidation of social insurance books in Vietnam. So, What do the procedures for closing the social insurance book involve when the company is dissolved? ACC Group will address your question.

1. What are the procedures for closing the social insurance book when the company is dissolved?

The procedures for closing the social insurance book when a company is dissolved may vary by jurisdiction and the specific regulations governing social insurance and labor matters in your country.

2. Submission of Social Insurance Books

The employee's responsibility in this process is to submit the same-issued social insurance book to the current employing unit or the unit participating in social insurance that has officially closed the book. This submission is crucial for creating a dossier, which will then be transferred to the social insurance agency for book consolidation.

If the last unit registered for social insurance dissolves or the employee no longer participates in social insurance, they must submit a dossier to the social insurance agency of the last registered unit to merge the book.

Data Consolidation

The consolidation process involves combining all data on unpaid social insurance and unemployment insurance premiums into the original book. The original book should be the one with the earliest participation in social insurance, which has not yet fully enjoyed the one-time allowance and unemployment benefits. Duplicate books and book numbers are revoked and destroyed in this step.

• If the first social insurance participation process is managed by a temporary book number or is not recognized by the employee, the number next to the social insurance book becomes the original number.
• Books currently receiving regular allowances from a social insurance book must be preserved as the original book.

3. Priority in Merging Books

When merging books with the same social insurance payment period, a specific priority order should be maintained:

• To reduce duplication, employees can contact the social insurance agency to minimize overlap and close the book.
• Books enjoying the retirement regime take precedence.
• Books under the labor accident - occupational disease regime are next in line.
• Books entitled to one-time allowance but yet to receive unemployment insurance come after.
• Books receiving unemployment benefits but not the one-time social insurance.
• Books with more extended periods of participation in social insurance, health insurance, and unemployment insurance with higher salaries.

4. Preservation of Allowance Data

Social insurance books that have recorded employee allowances as per the prescribed plans should preserve the remaining processes of not yet enjoying the allowance regime. This ensures that the benefits entitled to the employee are safeguarded.

5. Non-Participation Declaration

Employees who choose not to participate in social and unemployment insurance must explicitly state their decision on the application form (D01-TS). Professional processing officers then lock the data of social insurance and unemployment insurance premium payments. A record of book cancellation is made in the "Cancellation with many books" section.

6. Special Cases

In some situations, restoring the process that has been locked (KB or KT) may be necessary. This can only be done with the approval of the Board of Directors of the district social insurance agency or the leader of the city's social insurance collection department, following the process of recovering the canceled book number.

7. Reduction of Corresponding Process

Employees with the same process of participating in social insurance must reduce the corresponding process. Even for books with a period of time not enjoying the regime that coincides with books that did enjoy the lump-sum allowance, the unemployment allowance must be reduced to coincide with the preceding month.

8. Repayment of Unemployment Benefits

When combining social insurance books with the same social insurance participation process and having received unemployment insurance benefits, a calculation of the period of enjoying unemployment benefits is essential. Employees may be required to pay back the unemployment insurance amount received before the overlap is reduced.

9. Correcting Misused Records

For employees who have used other people's records to participate in social insurance and enjoy social insurance benefits, corrections should be made to reflect the correct identity. The social insurance agency will adjust the profile and notify the relevant authorities to update the identity accordingly.

10. Data Confirmation

In cases where the original data is managed by an employee's unit, it is essential to confirm the data according to plan CT or TT (if any). If the process of participating in social insurance is managed by another district but the employee has chosen not to admit it, that data must be entered to lock the KB and KT plan.

The period of overlapping social insurance premiums or continuing to pay social insurance premiums after receiving a decision on retirement enjoyment should be settled according to specific principles. This may include returning to the original book, rectifying duplicate payments, or recalculating the pension from the time the employee officially enjoys it.

In conclusion, understanding the handling principles related to the consolidation of social insurance books is crucial for both employees and social insurance agencies in Vietnam. Proper consolidation ensures accurate and up-to-date records, which is fundamental for a well-functioning social insurance system. Additionally, a clear comprehension of the social insurance principles in Vietnam provides valuable insights into the broader framework of the country's social insurance system.

FAQs

1. What should I do if my company is dissolving, and I need to close my social insurance book?

When your company is dissolving, you should submit a dossier to the social insurance agency where your last unit registered for social insurance. They will assist you in closing your social insurance book.

2. Can I transfer my social insurance book to a new employer if my company is dissolving?

If your company is dissolving, you cannot directly transfer your social insurance book to a new employer. Instead, you should follow the procedures to close your current book and, if necessary, start a new one with your new employer.

3. Is there a specific timeline for closing the social insurance book when a company is dissolved?

While there may not be a fixed timeline, it's crucial to initiate the process as soon as you're aware of the company's dissolution to avoid any potential issues or delays in accessing your social insurance benefits.

4. What documents are required to close the social insurance book during the company's dissolution?

You will typically need to provide a dossier, which includes the necessary documentation related to your social insurance contributions and employment history. The exact requirements may vary by location, so it's advisable to check with your local social insurance agency.