Newsletter
EXECUTIVE YUAN APPROVES DRAFT AMENDMENT TO LABOR PENSION ACT
On 27 May 1999, the Executive Yuan approved a draft amendment of the Workers Retirement Pension Statute. The key contents of the amendment are as follows:
Pension payments are divided into three types: lump sum payments, monthly payments and a combination of lump sum and monthly payments. Those receiving lump sum or combination payments in a personal retirement account must re-deposit the total amount into annual fund account after deducting amounts for current retirement use. The annual funds must be structured to guarantee that workers can receive at least ten years of pension payments.
If the worker dies within ten years after the date of retirement, his or her heirs may continue to receive payments from the annual fund account until the expiration of the 10-year period.
All workers who satisfy the necessary conditions are entitled to receive pensions. There are five types of conditions where a person may be entitled to a pension: at least 55 years old with employment of at least 15 years; employment of at least 25 years; at least 60 years old; a physical or mental disability preventing any type of employment; or emigrants or those who have lost ROC citizenship. Those who have worked for at least 25 years, or emigrated or lost ROC citizenship are only eligible to receive a lump sum pension payment.
Employers who do not make monthly payments into individual worker pension reserve funds will be subject to fines on a daily basis up to the amount of payment due. Employers are subject to fines up to double the amount of the delinquent payments if the delay in payments is not cured. If payments are still not made, fines will continue to be assessed on a monthly basis until payments are made.
Employers who do not complete procedures to establish individual worker pension reserve funds will be subject to fines of at least NT$100,000 but no more than NT$1 million. Fines will be repeatedly assess on a monthly basis until the procedures are completed.