The Legislative Yuan yesterday passed the Act Governing Civil Servants’ Retirement, Discharge and Pensions (公務人員退休資遣撫卹法), marking a significant step in the government’s pursuit of pension reform.
The act, which is to take effect on July 1 next year, will lower the income replacement ratio for civil servants who have worked for 35 years from 75 percent to 60 percent over the course of 10 years, while the ratio for those who have worked for 15 years is to drop from 45 percent to 30 percent over the same period.
The 18 percent preferential savings rate given to public servants hired before July 1995 is to be conditionally phased out.
Photo: CNA
Retired civil servants under the “old” pension system predating July 1995 who chose monthly pension payments will no longer receive the 18 percent interest by the end of 2020.
As for retirees who had claimed their pensions in full, the interest rate is to be reduced to 6 percent in 10 years, to fill a gap between the pension floor — set at NT$32,160 — and the 60 percent income replacement ratio.
The basis for calculating civil servants’ pensions is to be adjusted based on their average salary over the final 15 years.
Civil servants on childcare leave would be allowed to retain their seniority as long as they pay a monthly fee that is equivalent to 12 percent of their salary.
The fee, used to support the pension system, is normally shared by public servants and the government at a rate of 35 percent and 65 percent respectively.
Retired civil servants would forfeit their pensions if they chose to work for a government agency or state-run foundation that gives them a monthly salary that is higher than the minimum wage.
The act allows the spouse of a former civil servant to receive 50 percent of the pension that was paid to the latter during their marriage, while widows or widowers of former civil servants could receive pensions in their late partner’s place if they were married for at least 10 years.
The age at which Aboriginal civil servants — who, according to data from the Ministry of Civil Service, have a shorter life expectancy — can retire and claim pensions has been moved forward from 60 to 55.
Speaking after the bill’s passage, Presidential Office spokesman Alex Huang (黃重諺) said the purpose of pension reform is to ensure that every citizen can have a self-sufficient life after retirement and that the government would have sustainable resources to care for them all.
It is every political party’s responsibility to see to it that pension reform is successful, and the office welcomes all valuable input and concerted efforts to achieve that aim, Huang said.
Democratic Progressive Party (DPP) spokesman Wang Min-sheng (王閔生) said the passage of the bill represented the first step toward an important reform.
However, Chinese Nationalist Party (KMT) lawmakers lamented the result, with KMT caucus convener Sufin Siluko (廖國棟) saying that the bill is unconstitutional and would not have a lasting effect.
The bill was pushed through according to the DPP’s design, despite the office holding a national congress last year to discuss the reform with its opponents, which lasted for several months, KMT Legislator Hsu Shu-hua (許淑華) said.
She said Tsai, who wants to control legislative and administrative rights, should not call any national congresses in the future, as it would be a waste of money.
Additional reporting by CNA
EMBRACE CHANGE: Jensen Huang told NTU graduates that instead of worrying about AI itself, they should worry that people with expertise in AI would be taking their jobs Artificial intelligence (AI) is redefining the computer industry, and Taiwanese companies could play a major role in replacing the world’s traditional computers as they are the foundation of the industry, Nvidia Corp cofounder and CEO Jensen Huang (黃仁勳) said in Taipei yesterday. Huang made the remarks while giving the keynote speech at National Taiwan University’s (NTU) commencement ceremony. AI has created immense opportunities, and versatile companies can be expected to take advantage and boost their position, while less flexible firms would perish, he said. “In every way, this is a rebirth of the computer industry and a golden opportunity for the companies of
‘ARCHAIC’: An interpretation of a law that considered Chinese as Taiwanese nationals was scrapped after the death of a Chinese in Kaohsiung led to state reparations An administrative mandate to consider Chinese as Taiwanese citizens was outdated, Premier Chen Chien-jen (陳建仁) said yesterday, a day after the Executive Yuan ordered that agencies disregard the 30-year-old interpretation. Chen made the remarks at an event held by the Environmental Protection Administration in Taipei following changes to the administrative mandate concerning the Act Governing Relations Between the People of the Taiwan Area and the Mainland Area (臺灣地區與大陸地區人民關係條例). The previous interpretation of the law was archaic and contrary to the workings of laws and regulations, he said, adding that the order was made to avoid unnecessary problems created by the mandate. The Mainland
NOT BUYING IT: One of the goals of Beijing’s Cross-Strait Media People Summit was to draw mainstream media executives to discuss the ‘one country, two systems’ formula Taiwanese news media insist on press freedom and professionalism, and would never become a tool of China’s “united front” campaign, Premier Chen Chien-jen (陳建仁) said yesterday, responding to media queries about the lack of Taiwanese media executives at the Cross-Strait Media People Summit in Beijing. Chinese People’s Political Consultative Conference (CPPCC) Chairman Wang Huning (王滬寧) was reportedly furious that no Taiwanese media representatives attended a scheduled meeting with him on Thursday last week. “Beijing should take Taiwan’s determination to pursue freedom and democracy seriously. We also hope that it will not use vicious means to interfere with Taiwan’s development into a
IMMIGRATION REFORM: The legislative amendments aim to protect the rights of families to reunify, and to attract skilled professionals to stay and work in Taiwan Foreigners who are highly skilled professionals, top-prize winners in professional disciplines, investment immigration applicants or have made special contributions to Taiwan can soon apply for permanent residency on behalf of their spouses and minor or disabled children after the legislature approved amendments to the Immigration Act (入出國及移民法). The amendments, which were proposed by the Ministry of the Interior and approved by the Executive Yuan on Jan. 12, aim to attract foreign talent to Taiwan and encourage them to stay. They would take effect once they are signed by President Tsai Ing-wen (蔡英文). The amendments involved changing 63 articles, making it the biggest