Pan-blue lawmakers yesterday reneged on a deal reforming a retirement benefit system for government employees that has been a financial burden to the government for decades.
The about-turn prompted speculation that Chinese Nationalist Party (KMT) Chairman Ma Ying-jeou (馬英九), who is being challenged by his party's pro-localization faction, had given a warning to Legislative Speaker Wang Jin-pyng (王金平), who is largely perceived as favored by the faction.
"We strongly suspect that the move [by the KMT] was instigated by Ma, who wanted to show Wang that he is party leader," Democratic Progressive Party (DPP) legislative caucus whip Ker Chien-ming (柯建銘) told a press conference.
The deal was achieved at a cross-party negotiation meeting chaired by the legislative speaker on Tuesday, during which lawmakers agreed that they would pass related amendments on yesterday's session to pay less pensions for retired government employees.
The legislature on Tuesday passed a resolution reinstating the 18 percent special interest rate on savings for retired civil servants, military personnel, and teachers -- overriding a Cabinet executive order from Feb.16 that had reduced the retirement benefits system for government employees.
In accordance with the resolution, the government has to compensate the beneficiaries of the system for the loss of interest they have incurred over the past 10 months.
The DPP compromised with the pan-blues on the resolution as they said that the pan-blues agreed that the deal made at the negotiation meeting would take effect on Feb. 16 next year.
After the deal was done, KMT caucus whip Tsei Chin-lung (蔡錦隆) said that the government would pay NT$38 million (US$1.16 million) less by 2048 under the new pensions system.
However, with the Cabinet's executive order overridden on Tuesday and since amendments to a new pension system failed to pass the legislature yesterday, the pension system will revert, which will end up costing the government NT$ 2.2 trillion by 2048.
"Ma has to take responsibility for failing to pass the amendments today as he sacrificed the nation's interests for the internal fighting of the party," Ker said.
Tsai denied Ker's accusation, saying that the party would still support the deal only if the Examination Yuan, the administrative agency of the pension system, were to approve the deal and then send it to the legislature for review.
DPP Legislator Chuang Suo-hang (莊碩漢) said that citing procedural reasons to delay reviewing the amendments was just an excuse.
"Legislation is the lawmakers' right and obligation, too. I see no reason why we have to wait for a proposal brought up by Examination Yuan," he said.
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