Contributing feedback to the draft Law amending and supplementing a number of articles of the Social Insurance Law, the Thai Nguyen Department of Home Affairs proposed reconsidering the regulation limiting the power of attorney for pension receipt to 12 months. The Ninh Binh Department of Home Affairs also recommended applying the provisions of the Civil Code, allowing parties to mutually agree on the duration of the power of attorney.

Local authorities argue that the current regulation creates difficulties for pension beneficiaries, especially the elderly, those with poor health, or those living far from payment points.

According to the Social Insurance Law 2024, a power of attorney for pension receipt is valid for a maximum of 12 months from the date of establishment and must be authenticated as stipulated. Previously, the duration of the power of attorney was mutually agreed upon by the parties; if not specified, it was implicitly valid for one year.

As the law takes effect from 1/7/2025, many powers of attorney established under the new regulation will expire after 30/6. Beneficiaries need to complete renewal procedures to avoid interruption in receiving pensions and benefits.

Some localities also proposed supplementing a regulation requiring the authorized person to notify the social insurance agency when the authorizing person passes away or is no longer eligible for benefits. The Nghe An Department of Home Affairs and the Ministry of Finance suggested that in cases where money is incorrectly received after the beneficiary's death or loss of entitlement, it must be refunded according to law.

Elderly people in Hanoi receive pensions at a payment point. Photo: Phong Linh

Responding to the feedback, the Ministry of Home Affairs stated it is developing two options for submission to competent authorities. The first option maintains the current regulation. The second option removes the maximum 12-month validity limit and aligns with civil law provisions.

According to the Ministry of Home Affairs, if the 12-month limit is removed, beneficiary management will be carried out through data connection and sharing between the social insurance agency and national and specialized databases, combined with information verification when necessary.

Currently, approximately 3,4 million people nationwide receive monthly pensions and social insurance benefits. Vietnam Social Security states that the regulation limiting the power of attorney's validity aims to prevent risks in payments, ensuring correct recipients and proper benefits for a large number of beneficiaries.

However, this regulation also reveals shortcomings in some cases where beneficiaries are elderly, in poor health, or unable to directly complete renewal procedures. Recently, the Hanoi Party Committee demanded an improvement in public service attitudes after an incident where a Ngoc Ha ward official required a 97-year-old woman to visit the office to complete power of attorney procedures for pension receipt.

Hong Chieu