2011-01-03

Amendment to the National Pension Act Passes Preliminary Review by Taiwan’s Legislative Yuan

The Social Welfare, Environmental and Hygiene Committee of Taiwan’s Legislative Yuan has recently passed a preliminary review of a proposal amendment to the National Pension Act (the “Proposed Amendment”).

In the Proposed Amendment, retired soldiers, public servants and teachers who were not qualified for the national pension scheme in the past will be included in the new national pension scheme under certain circumstances. In order to ensure that these qualified individuals will be able to maintain a minimum life standard, a monthly pension at the amount of NT$ 3,000 will be given after the Proposed Amendment takes effect. Further, those individuals who have received a one-time fixed amount of pension will also be entitled to the month pension of NT$ 3,000 provided that such pensioners remain alive after the allocation of his/her one-time pension to each month has been fully utilized by deduction of NT$ 3000 per month. . For example, a retired teacher who has already received a NT$ 60,000 pension when he/she was retired will entitle to claim a monthly pension of NT$ 3,000 after 20 months of his/her retirement.

In addition, in order to avoid the authority from charging a full monthly fee for the national pension scheme on those people who merely suspend their work for a few days, the Proposed Amendment also provides that the fees of the pension scheme will be calculated on a daily basis rather than on a monthly basis.
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