Cabinet Releases Nine Framework Proposals on Annuities/ Pension Reforms

Cabinet Releases Nine Framework Proposals on Annuities/ Pension Reforms

Source: All Taipei Newspapers

Sep. 23. 2016

The National Pension Reform Committee (國家年金改革委員會), chaired by Vice President Chen Chien-jen (陳建仁) under the Presidential Office, held its 13^th meeting yesterday. The Pension Reform Office of the Executive Yuan (行政院年金改革辦公室) under the National Pension Reform Committee, later released nine framework proposals for the pension/annuities reform systems after integrating views expressed at the past meetings of the committee. The proposals would be discussed at the follow-up meetings of the committee in order to reach a consensus.

 The nine pension/annuities reform proposals are as follows:

 1)    Maintain the separation between the mandatory earnings-related public pension plan and the mandatory earnings-related occupational or private pension plans.

2)    Rename the original “Farmer Health Insurance” as “Farmer Insurance,” and Rename “Farmer Subsidy” to “Old-Age Entitlements.” Central and local governments would jointly budget funds to pay NT$ 7,256 (US$ 230) per month to each of the 630,000 farmers in the country.

3)    The Farmer Insurance would be integrated into the National Annuities Insurance System.

4)     The Farmer Insurance, the National Annuities Insurance System and the Labor Insurance would be integrated into a single insurance system.

5)    The pension reform for military personnel would be planned separately.

6)     Integrate all mandatory insurance program for different occupations into the National Annuities Insurance System, including insurance for childbirth, the disabled, old-aged, death, and benefits to survivors.

7)     Integrate all mandatory pension programs for different occupations into the National Annuities Insurance System.

8)    The National Annuities Insurance would adopt a defined contribution (DC) plan with a fixed percentage

9)    Using New Zealand’s and Australia’s reform process as references to consolidate the whole pension system into one National Basic Annuities Insurance System funded through taxation.

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