Fri, Feb 01, 2013 - Page 1 News List

Vice premier lashes out at DPP pension reform plan

PREMIUM RATES:Su Tseng-chang rebutted Jiang Yi-huah’s comments that the party’s proposal would increase the burden on workers and benefit capitalists

By Shih Hsiu-chuan and Chris Wang  /  Staff reporters

The document released by the DPP shows that the party “recommended a 6:4 ratio to correspond to international trends,” adding that the ratios of various pension programs should be the same, but it would take “a dialogue between all involved parties to determine the final ratio,” Su said.

The DPP submitted the ratio after learning that the government was recommending a 5:5 ratio, which the DPP opposed, he said.

The government’s proposal would lower private-sector employees’ income replacement rate to between 30 and 40 percent, “which would leave workers with no choice but to commit suicide,” Su said.

Lin Wan-i (林萬億), executive director of the DPP’s think tank and the primary author of the proposal, reaffirmed that the party did not recommend a specific ratio and had always maintained that the ratio should be negotiated by all parties

On the government’s pension reform proposal, former premier Frank Hsieh (謝長廷) told reporters that the core issues should be the income replacement rate for public employees and the 18 percent preferential interest rate, but the government failed to address the issues, especially in regards to the preferential treatment for government officials with high incomes.

DPP Legislator Lee Ying-yuan (李應元) said the government’s proposal was not likely to clear the legislature without major adjustments because it failed to meet people’s expectations.

The government’s proposal appears to favor current public-sector employees while cutting the benefits of private-sector workers and future government employees as former civil servants who retired before 1995 will not be not affected by the proposed changes, Lee said.

Under the current government proposal, annual retirement payment for civil servants would be almost twice of those for private sector employees, Lee said.

This story has been viewed 1352 times.
TOP top