Newsletter
LABOR INSURANCE PENSIONS TO BE MANDATORY FOR ALL WORKERS
A meeting of the Council of Labor Affairs (CLA) on 4 October 2002 approved a draft amendment to the Labor Insurance Act. The major reform is an expansion in the scope of mandatory partici-pation in the labor insurance scheme. It is esti-mated that an additional 200,000-plus workers will be covered. In the future, all employees will be included in the old age pension scheme, in-cluding those employed in enterprises with four or less employees, along with part-time workers, and professional and technical staff such as doctors and lawyers.
According to the draft amendment, when insured persons who are brought into the labor insurance scheme by the reform of the pension system become eligible to receive pension payments, they may choose whether to receive a single lump-sum payment or monthly amunity pay-ments. But new entrants who join after the new system takes effect will only be able to receive amunities. The draft also provides that part-time workers employed in two or more enterprises may choose to participate in labor insurance through the company at which they receive the higher salary, and will be able to draw old age pension once they meet the qualifying conditions for retirement.