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Labor Insurance Fund’s stock holdings take a hit

The value of the government-run Labor Insurance Fund’s stock holdings declined by NT$20.5 billion (US$641.3 million) during the first eight months of this year, Council of Labor Affairs (CLA) Minister Wang Ju-hsuan (王如玄) said yesterday.

Wang made the announcement while delivering a report at a meeting of the Legislative Yuan’s Health, Environment and Labor Committee in response to a question by Democratic Progressive Party Legislator William Lai (賴清德) on the downturn in the local and international stock markets had affected the fund.

Bureau of Labor Insurance statistics showed the fund’s domestic equity holdings fell NT$15 billion for the period, while its international stock holdings declined NT$5.5 billion, Wang said.

Wang said the bankruptcy filing by US investment bank Lehman Brothers had caused the Labor Insurance Fund US$1.2 million in losses and the Labor Pension Fund a US$340,000 loss.

Lai expressed concerns during questioning that the decline in the fund’s holdings might affect retired laborers.

Wang said that if all eligible retired laborers were to all ask for their money at one time in one lump sum rather than monthly payments, the fund would fall short by NT$900 billion.

The number of laborers asking for a lump sum payment has gradually declined, Wang said.
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