萬國法律事務所

The 18% Preferential Saving Interests applicable to the retired civil servants and school faculty and staff are under the “Rules Regulating the Preferential Saving of the Seniority Benefit Payable under the Civil Servants Insurance of the Retired Civil Servants” and the “Rules Regulating the Preferential Saving of the Seniority Benefit Payable under the Civil Servants Insurance of the School Faculty and Staff” (Collectively, the “Rules”); the maximum amounts of the principal under the Rules has been decreased from NTD 1,000,000 to 800,000 in 2006 (the “Amendments”).

105 retired civil servants and school faculty and staff sought for an interpretation to be made by the Justices of Constitutional Court, Judicial Yuan, R.O.C. (the “Justices of Constitutional Court”) and claimed the Amendments to the Rules are unconstitutional. The Justices of Constitutional Court made the Interpretation No. 717 declaring the Amendments to the Rules do not contravene the Constitution of the R.O.C. The reasons are the Amendments were made to deal with the unreasonable and unjust situations where the salary, compensations and the pensions of the retired civil servants and school faculty and staff have been greatly increased, and some retired civil servants and school faculty and staff were eligible to get paid more than those who are in the same position and still in service based on 18 % preferential saving interests under the Rules, and to minimize the financial burden of this country.