On June 23, the National Committee on Pension Reform convened for the first time. Addressing the committee, President Tsai Ing-wen (蔡英文) revealed four principles of the government’s reform program.
First, the pension system must be designed so that it is financially stable while taking into account the ability to pay into the system.
Second, using reasonable contribution levels, the system must look after the economic needs of disadvantaged groups.
Third, it must reduce discrepancies between the pension systems for different professions and occupations to build a more cohesive society.
Fourth, the reform process must be transparent and democratic.
Tsai said that the goal of these principles is to ensure that the reform process would construct a stable and sustainable pension system that would become part of the social safety net and help create a more unified society.
Following Tsai’s speech, the committee convened for the first time. Unfortunately, boisterous questioning by some committee members turned the meeting into a shouting match, resulting in three members leaving the meeting.
If committee members are unable to reach a consensus, how can they move on to the second stage of the process — the national conference on pension reform — let alone draft legislation? Will Tsai’s administration really be able to complete the reform process within one year?
Compared with Japan, the US and some European nations, pension reform in Taiwan is already two decades late. Although former president Chen Shui-bian’s (陳水扁) administration reformed part of the system — the 18 percent preferential savings interest rate and income replacement ratio given to military personnel, civil servants and public-school teachers — and former president Ma Ying-jeou (馬英九) abolished government employees’ year-end compensatory payouts, neither government was able to face up to the challenge of a perfect storm of fast-depleting pension funds combined with a rapidly aging population.
Taiwan’s four largest pension funds are facing the threat of bankruptcy. If the pace of reform is not accelerated, the time might come when pensioners stop receiving payments. Unless the debt problem is transferred to the next generation, society could be thrown into turmoil, which would hand Taiwan’s enemies an opportunity to interfere. Hopefully, legislators can put the needs of the country and the public first, and for the sake of future generations, strain every sinew to complete pension reform.
Tsai has said that government employees are not targets, but partners and participants in the reform process. It is understandable that government employee representatives are eager to gain public support and make their opinions heard. Government employee representatives would hopefully propose an alternative version of the reform program that addresses the areas they believe are illogical or confusing.
The starting pistol has been fired on pension reform with the establishment of the committee. It is crucial that momentum is maintained, as reform moves from committee stage to legislative scrutiny and finally enactment into law. It is essential that the job is completed within one year.
If that fails, the resignation of the deputy convener and executive director of the committee, Lin Wan-i (林萬億), would be a trifling matter compared with the failure to implement the government’s long-term strategy.
Taiwanese must come together to overcome this hurdle and exercise restraint for the good of the nation: Failure is not an option.
Li Chuan-hsin is vice president of the Northern Taiwan Society.
Translated by Edward Jones
Could Asia be on the verge of a new wave of nuclear proliferation? A look back at the early history of the North Atlantic Treaty Organization (NATO), which recently celebrated its 75th anniversary, illuminates some reasons for concern in the Indo-Pacific today. US Secretary of Defense Lloyd Austin recently described NATO as “the most powerful and successful alliance in history,” but the organization’s early years were not without challenges. At its inception, the signing of the North Atlantic Treaty marked a sea change in American strategic thinking. The United States had been intent on withdrawing from Europe in the years following
My wife and I spent the week in the interior of Taiwan where Shuyuan spent her childhood. In that town there is a street that functions as an open farmer’s market. Walk along that street, as Shuyuan did yesterday, and it is next to impossible to come home empty-handed. Some mangoes that looked vaguely like others we had seen around here ended up on our table. Shuyuan told how she had bought them from a little old farmer woman from the countryside who said the mangoes were from a very old tree she had on her property. The big surprise
The issue of China’s overcapacity has drawn greater global attention recently, with US Secretary of the Treasury Janet Yellen urging Beijing to address its excess production in key industries during her visit to China last week. Meanwhile in Brussels, European Commission President Ursula von der Leyen last week said that Europe must have a tough talk with China on its perceived overcapacity and unfair trade practices. The remarks by Yellen and Von der Leyen come as China’s economy is undergoing a painful transition. Beijing is trying to steer the world’s second-largest economy out of a COVID-19 slump, the property crisis and
Ursula K. le Guin in The Ones Who Walked Away from Omelas proposed a thought experiment of a utopian city whose existence depended on one child held captive in a dungeon. When taken to extremes, Le Guin suggests, utilitarian logic violates some of our deepest moral intuitions. Even the greatest social goods — peace, harmony and prosperity — are not worth the sacrifice of an innocent person. Former president Chen Shui-bian (陳水扁), since leaving office, has lived an odyssey that has brought him to lows like Le Guin’s dungeon. From late 2008 to 2015 he was imprisoned, much of this