The Chinese Nationalist Party (KMT) caucus recently announced that, following the Aug. 23 referendum, it would begin to promote amendments to the Act Governing Civil Servants’ Retirement, Discharge and Pensions (公務人員退休資遣撫卹法) that would stop incremental pension cuts for civil servants, teachers and military personnel — just as they previously did for police and firefighters — allowing them to retain the 80 percent replacement rate.
A Ministry of Civil Service report said that if the KMT were to successfully pass these pension system reforms, the Public Service Pension Fund could go bankrupt four to five years earlier than previously anticipated. That would greatly affect the retirement benefits of employees, as there would no longer be sufficient funds available for their pensions upon retirement.
Despite significant resistance, reforms to the pension system for civil servants, teachers and military personnel were successfully implemented under former president Tsai Ing-wen’s (蔡英文) administration. That helped to reduce the nation’s expenditure on pensions for civil servants and addressed the issue of the pension fund’s looming bankruptcy crisis.
As the saying goes, one generation plants the trees so the next can enjoy the shade — it is not acceptable for the next generation to chop down the trees, leaving everyone without shelter or support.
It is not the government’s sole responsibility to generously scatter riches. Spending money is easy, but living within one’s own means requires determination and perseverance. These two opposing attitudes determine the political landscape.
Tsai’s re-election in 2020 demonstrated that a majority of Taiwanese were accepting of the government’s pension reform plan. In contrast, the KMT — driven by selfish political interests — is now pushing to amend the law to cancel the pension cuts, completely disregarding the long-term health and sustainability of the nation’s finances.
Insisting on going against the will of the majority is tantamount to fueling national division and instability. Although public-sector employees saw a reduction in their pensions as a result of the Tsai-era reforms, the monthly amount they receive after retirement still exceeds that of the average Taiwanese worker. This alone illustrates that the reforms were a prudent and just measure that carefully balances the reasonable living needs of different groups and generations.
The hard-won, stable and fair pension reforms should not be undone, nor should they be used to sow division.
Chen Chi-nung is a political commentator.
Translated by Kyra Gustavsen
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