The Ministry of National Defense yesterday announced draft reforms to the military pension system, which would phase out the 18 percent preferential savings rate within the first year and slash pensions.
The 18 percent savings rate for current personnel and veterans who opted for monthly pension payments would be phased out within the first year, while the original funds would be returned to the pensioner, the ministry said.
The monthly pension program would be recalculated based on the new program, with those receiving higher monthly pay seeing their pensions cut over 10 years until it reaches the new amount, it said.
Photo: Fang Pin-chao, Taipei Times
Veterans who received a lump-sum payment — provided that the amount along with payouts from military insurance do not exceed the minimum of NT$32,160 (US$1,066) — would retain the 18 percent preferential savings rate for their principal capital, the ministry said.
For those with a lump-sum payment that exceeds the minimum stipulated by the new program, preferential savings would drop to 12 percent between July 1 next year and Dec. 31, 2020, after which it would decrease by 2 percentage points every two years until January 2025, it said.
Veterans forced into early retirement by previous programs would be given a pension proportionate to their years served, with the difference between their pension and the new mandated minimum subsidized by the government, the ministry said.
Photo: Wang Yi-sung, Taipei Times
Spouses of deceased veterans would still be entitled to half of their spouse’s monthly pension without an age limit, provided that the spouse remains unmarried and was married to the veteran for more than two years, it said.
Spouses who are wedded to retirees must be 55 years old and have been wedded to the pensioner for 10 years to be eligible to receive half their spouse’s monthly pension upon their death, the ministry said.
The maximum retirement age for senior and junior officers is to be extended by two years, while the age for major generals would be capped at 57 years old, lieutenant generals at 60 and three-star and four-star generals at 64 and 70 respectively, it said.
Time spent on special operations or missions would be included in years of service under the plan.
The draft reforms would increase payout rates to 18 percent while maintaining the current sharing ratio, in which the government absorbs 65 percent of the payout, the ministry said.
Pension calculations would be based on the average monthly payments during a veteran’s last 36 months of service and would guarantee a minimum of NT$32,160, it said, while pensions before the amendment is promulgated would still be calculated by doubling a veteran’s salary at the time of their retirement.
The ministry and the Veterans’ Affairs Council are to hold public hearings for current and retired military personnel to share their opinions, the ministry said, adding that it would forward the opinions to the Executive Yuan.
The phasing out of the 18 percent rate would cut payouts, but also offer an additional NT$193 billion for the pension foundation to ensure its smooth operations for at least 30 years, the ministry said.
At least NT$100 billion would come from the council, which is to budget NT$10 billion every year for the next 10 years to the foundation, it added.
The ministry is to increase the foundation’s transparency and work to minimize political intervention on its operations, the ministry said, adding that it would hold a quinquennial inspection of the foundation after the reforms are enacted.
LONG FLIGHT: The jets would be flown by US pilots, with Taiwanese copilots in the two-seat F-16D variant to help familiarize them with the aircraft, the source said The US is expected to fly 10 Lockheed Martin F-16C/D Block 70/72 jets to Taiwan over the coming months to fulfill a long-awaited order of 66 aircraft, a defense official said yesterday. Word that the first batch of the jets would be delivered soon was welcome news to Taiwan, which has become concerned about delays in the delivery of US arms amid rising military tensions with China. Speaking on condition of anonymity, the official said the initial tranche of the nation’s F-16s are rolling off assembly lines in the US and would be flown under their own power to Taiwan by way
OBJECTS AT SEA: Satellites with synthetic-aperture radar could aid in the detection of small Chinese boats attempting to illegally enter Taiwan, the space agency head said Taiwan aims to send the nation’s first low Earth orbit (LEO) satellite into space in 2027, while the first Formosat-8 and Formosat-9 spacecraft are to be launched in October and 2028 respectively, the National Science and Technology Council said yesterday. The council laid out its space development plan in a report reviewed by members of the legislature’s Education and Culture Committee. Six LEO satellites would be produced in the initial phase, with the first one, the B5G-1A, scheduled to be launched in 2027, the council said in the report. Regarding the second satellite, the B5G-1B, the government plans to work with private contractors
‘OF COURSE A COUNTRY’: The president outlined that Taiwan has all the necessary features of a nation, including citizens, land, government and sovereignty President William Lai (賴清德) discussed the meaning of “nation” during a speech in New Taipei City last night, emphasizing that Taiwan is a country as he condemned China’s misinterpretation of UN Resolution 2758. The speech was the first in a series of 10 that Lai is scheduled to give across Taiwan. It is the responsibility of Taiwanese citizens to stand united to defend their national sovereignty, democracy, liberty, way of life and the future of the next generation, Lai said. This is the most important legacy the people of this era could pass on to future generations, he said. Lai went on to discuss
MISSION: The Indo-Pacific region is ‘the priority theater,’ where the task of deterrence extends across the entire region, including Taiwan, the US Pacific Fleet commander said The US Navy’s “mission of deterrence” in the Indo-Pacific theater applies to Taiwan, Pacific Fleet Commander Admiral Stephen Koehler told the South China Sea Conference on Tuesday. The conference, organized by the Center for Strategic and International Studies (CSIS), is an international platform for senior officials and experts from countries with security interests in the region. “The Pacific Fleet’s mission is to deter aggression across the Western Pacific, together with our allies and partners, and to prevail in combat if necessary, Koehler said in the event’s keynote speech. “That mission of deterrence applies regionwide — including the South China Sea and Taiwan,” he
RSS