The objections of military personnel, public-school teachers and civil servants have been the loudest since the National Committee on Pension Reform convened in June to tackle the problems plaguing the nation’s various pension systems, most of which are likely to go bankrupt within a few decades.
A group of former military personnel, civil servants and public-school teachers is planning to take its appeal to the streets on Armed Forces Day on Saturday. Saying that they have sacrificed their youth to the nation and suffered long absences from their families, representatives from the group said that the protest was aimed at defending their dignity and respect, adding that they support pension reforms, but that any change should not be carried out retroactively.
What they mean is that the controversial 18 percent preferential interest rate given to military personnel, civil servants and public school teachers who started working before 1995 should stay.
This begs the questions: Who in their respective work does not contribute to society as a whole? Should everyone not be treated with dignity and respect? If the group’s logic is to be accepted, all workers in the nation should have the same reasons to take to the streets.
Former military personnel, public-school teachers and civil servants enjoy generous benefits compared with their counterparts in the manufacturing and farming sectors, particularly with the 18 percent preferential interest rate that was implemented to alleviate hardship among civil servants during the 1950s and 1960s. However, the circumstances that necessitated the policy have since changed.
No one is denying the contributions to society made by former military personnel, civil servants and public-school teachers, nor is anyone stigmatizing them. However, being on the government’s payroll and having served the nation, should the group, more so than anyone, not be more attentive about and understanding of the financial woes facing the nation?
According to reports by the Directorate-General of Budget, Accounting and Statistics and the Ministry of Finance, the government allocates about NT$310 billion (US$9.75 billion) annually to the pension system for military personnel, public-school teachers and civil servants, with NT$77.8 billion being spent on the 18 percent preferential interest rate payments.
Considering the government has about NT$17.75 trillion in unfunded liabilities, it is practically borrowing money to pay the pensions.
While it is reasonable for the group to enjoy relatively higher salaries given their positions, it is simply absurd when they retire, but still receive monthly payments that are equal to, or higher than, their pre-retirement salaries.
According to a study by the Ministry of Civil Service, the average monthly pension for the nation’s 134,849 retired and claiming public servants, including the 18 percent interest paid on special savings accounts and monthly pension payments, is NT$50,000 per person per month, and 646 retired civil servants receive more than NT$100,000 per month, while 8,292 receive between NT$80,000 and NT$100,000.
The Council of Grand Justices’ Constitutional Interpretation No. 485 states that, given limited state resources, social legislation must “consider the economic and financial conditions of the state” and “ensure fairness between the beneficiaries and the rest of society.”
In light of the nation’s financial difficulties and with various pension systems on the brink of collapse, it can be only hoped that military personnel, public-school teachers and civil servants do not insist on protecting their benefits and rights, without any regard for how the debt problem might transfer to future generations, leaving the possibility of today’s youth being left without retirement funds.
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