The Examination Yuan decided to amend the government's preferential deposit interest rate for retired civil servants, teachers and soldiers saying that the quota for them to enjoy the 18 percent interest rate should be limited to NT$2 million per person.
"We hope that this new measurement can help build a fairer financial mechanism for all people in the country," Examination Yuan President Yao Chia-wen (姚嘉文) said, while briefing PFP lawmakers about the new policy.
The Examination Yuan, which is responsible for the civil service, said many people feel the special rate is not fair to average citizens.
"While other citizens can only deposit their money with banks at an interest rate of 9 percent or lower, the 18 percent interest rate for retired government officials has been criticized because it benefits a particular social class at the expense of the rest of the country," said Lee Ching-hsiung (
Responding to the criticisms, many teachers and public servants said that the original purpose of the preferential rate was to encourage more people to find jobs in public service.
"The government shouldn't try to take back our rights just because they are short of revenue," leaders of the National Teachers Association said.
The Examination Yuan held meetings to discuss how to amend the preferential rate to follow the spirit of the government's financial reform and then it drew up a draft for making some limits on the rate in the future.
Yao Chia-wen (
"According to our new measurement, 82 percent of the 340,000 public servants, teachers and soldiers who have already retired, will not apply," Yao said.
"But those who have served as public servants, teachers and soldiers since 1995 should adopt the new rate when they retire," he said.
Yao added that the Examination Yuan is willing to hold public hearings, if necessary, to allow experts and officials to make suggestions on the amendment before the end of this month.
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