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Su calls on legislature to pass law on pension fund

Premier Su Tseng-chang adds an extra piece of cake to the cake on the table to represent the funds that the government will add annually to the committee that has been proposed to handle the management of the labor pension fund. PHOTO: WANG MIN-WEI, TAIPEI TIMES

Premier Su Tseng-chang (蘇貞昌) yesterday urged the legislature to help the government secure and promote the laborers' pension fund by approving the draft bill governing the committee that would oversee the fund's management when the legislature resumes sitting in September.

"The new laborers' pension mechanism has been in effect for a year. It is regrettable, however, that the proposed organic law to govern the labor pension fund management committee has been pending since March last year," Su said, speaking at a lunch meeting with leaders of local labor unions at the Executive Yuan yesterday.

Su said that with more than 4 million workers -- out of the country's total of 5.34 million workers -- participating in the new mechanism, the pension fund has now exceeded NT$70 billion (US$2.2 billion) and is expected to reach NT$140 billion by year-end.

According to the labor pension mechanism, the fund shall enjoy a 1.9 percent annual percentage rate (APR), but local banks would only provide a 1.5 APR given the huge amount of money involved.

To make up for the difference, the government will have to pay approximately NT$800 million to the fund so workers' legal rights will be preserved and protected.

The premier said that the organic law would ensure that the pension fund will enjoy a 4.5 APR. In that case, by the end of this year, an additional NT$5.5 billion will be deposited to the fund.

"If the organic law can be approved as soon as possible, it will not only secure our workers' pensions but will also remove the burden on the government to pay for the difference," Su said.
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