Tue, Jun 02, 2009 page3

• MOE estimates huge payouts if bill passes

  TAXPAYER MONEY The bill governing pensions for private school personnel would require the central or local governments to pay up to NT$970 million, the MOE says

  • By Ko Shu-ling / STAFF REPORTER
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  The government will have to pay NT$970 million (US$30 million) each year into the retirement pension of private schools if a bill governing pensions for private school personnel passes the legislature, the Ministry of Education (MOE) said yesterday.

  The legislature’s Judiciary, Organic Laws and Statutes Committee yesterday passed the preliminary review of a bill on the retirement, compensation, dismissal and resignation of teachers and staff at private schools.

  No cross-party negotiation is needed before the approved version proceeds to the plenary legislative session for the second, and possibly third, reading.

  If approved, the MOE projected that it would cost the state treasury about NT$970 million each year.

  Since the state treasury already has a potential deficit of NT$41.6 billion, the bill is causing concern that taxpayer money would be used to subsidize private schools.

  Under the bill, private schools, school staff and teachers, the MOE and the educational agencies of local governments must pay into the pension savings fund on a monthly basis.

  The fund would consist of two parts — the schools’ savings preparation accounts and individuals’ pension accounts.

  Private elementary schools and junior high schools would be required to set aside 2.1 percent of their miscellaneous fees for the pension fund within two months after a new semester begins. Private senior high schools and institutions of higher education would be required to reserve 3 percent of their tuition fees for the fund.

  Teachers and staff would pay 35 percent into the fund, while 26 percent would come from the schools’ savings preparation accounts, 6.5 percent from private schools and 32.5 percent from the educational agencies of central and local governments.

  The fund management commission would then redistribute two thirds of the fund to schools’ savings preparation accounts, while the remaining one-third would go to pension accounts.

  One-third of the members of the fund management commission would be comprised of teachers and organizations and experts recommended by them. The other two-thirds would be comprised of members of a school’s board of directors.

  The bill would compel the central government to shoulder the financial responsibility if local governments could not afford their payments.

  The central or local governments would be legally responsible for making up the shortfall if an individual received a pension or severance payment less than he or she had before the act took effect.

  To make the bill more complete, the committee required the Executive Yuan and Examination Yuan to present amendments to the Labor Insurance Regulations (勞工保險條例) and Insurance Act of Civil Servants and Teachers (公教人員保險法) within six months after the pension bill for private schools passes the legislature.

  The committee also asked the Ministry of Education to study the feasibility of preventing retired public school teachers and civil servants from receiving double incomes by teaching full time at private schools.

  Meanwhile, the same committee yesterday approved preliminary reviews of revisions to the Organic Act of Civil Servants Protection and Training Committee (公務人員保障暨培訓委員會組織法) and the Organic Statute of the National Civil Service Institute (國家文官培訓所組織條例).

  Cross-party negotiations must be held before amendments of the two acts proceed to the plenary legislative session for further debate.
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