Increased contributions from the government and citizens have pushed back the Labor Insurance Fund’s projected insolvency from 2028 to 2031, a report published today showed.
The Ministry of Labor, in accordance with the Labor Insurance Act (勞工保險條例), evaluates the finances of the fund every three years, with today’s report based on data as of Dec. 31 last year.
Assuming an investment return rate of 4.5 percent, plus government subsidies, the fund’s solvency has been extended by three years, although implicit contingent liabilities grew from NT$10.29 trillion to NT$13.23 trillion (US$314.19 billion to US$403.96 billion).
Photo: Lee Ching-hui, Taipei Times
The delay in this year’s report was mainly due to continued discussions around the government budget, Department of Labor Insurance Director Chen Mei-nu (陳美女) said.
The fund has received NT$387 billion over six years from the government, while the number of insured persons has increased to 10.1 million and average wages have increased, Chen said.
Insufficient revenue to cover benefit payments, due to premium rates being lower than break-even rates and changes in retiree behavior, led to an increase in implicit contingent liabilities, she said.
Since 2017, for eight consecutive years, insurance expenditures have outpaced revenue, the report showed.
Total assets for the fund stood at NT$1.1 trillion as of November last year.
To maintain the fund’s stability, Chen said the government would continue encouraging middle-aged workers to stay in the labor force and pay premiums, while also reviewing insurance payments and diversifying the fund’s investments.
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