Annuity and Pension Reforms Committee Convenes First Meeting

Annuity and Pension Reforms Committee Convenes First Meeting

Source: United Daily News

June 24, 2016

The first meeting of the annuity and pension reforms committee under the Presidential Office, headed by Vice President Chen Chien-jen (陳建仁), was convened yesterday at the Presidential Palace.

According to Chen, the weekly committee meetings will discuss issues covering the insured salary cap, the income-replacement ratio, premium rates, and the age of eligibility. Chen stated that he hoped the committee would seek reasonable solutions to annuity and pension reforms based on actuarial science.

Chen went on to say that the committee would examine the annuity and pension systems in other countries, especially in OECD (The Organisation for Economic Co-operation and Development) member countries. In his own remarks, Chen said, "While we do not expect a new plan will solve all the problems once and for all, at least it would provide financial stability for this generation and secure sustainable development."

During the meeting yesterday, President Tsai Ing-wen (蔡英文) stressed that for the reforms to succeed, establishment of a sustainable annuity system would be essential. She said that the committee must adhere to the following four principles: “First, consideration should be given to both the financial soundness of the system and what people can afford when it comes to designing the system. Second, within a reasonable range, benefits and contributions must be used for the financial security of the disadvantaged. Third, to achieve solidarity, we must narrow the gap of annuity and pensions between different occupations. Finally, we must adhere to the principles of democracy and information transparency.”

However, thousands of protestors who now serve or used to serve in the military, government, and public schools rallied outside the Presidential Palace. They were concerned that the new government would cut the benefits of the military service, civil service and public school teachers in the reforms. The meeting quickly heated up as committee members representing the military service, civil service and public school teachers exchanged verbal blows over procedural concerns and the low number of members on the committee representing the three ranks. In the end, three committee members representing the civil service and veterans walked out in protest.

Attachment : none