The Executive Yuan today approved draft amendments to the National Pension Act (國民年金法), with the government expecting to invest about NT$86 billion (US$2.72 billion) annually and an estimated 1.76 million people set to benefit.
The draft changes are aimed at raising benefit levels, easing means-testing thresholds and introducing a mechanism to adjust payments in line with price changes, the Cabinet told a news conference in Taipei today.
The proposed partial amendments would significantly boost several payout categories, said Chang Yu-hsuan (張鈺旋), director-general of the Ministry of Health and Welfare’s Department of Social Insurance.
Photo: Reuters
The basic monthly guaranteed amount for elderly, survivor and indigenous peoples’ pensions would rise from NT$4,049 to NT$5,000, an increase of 23.5 percent, while the basic guaranteed disability pension would be raised from NT$5,437 to NT$6,715, she said.
The adjustments would help recipients cope with rising prices and maintain their basic purchasing power, the ministry said.
The proposed amendments would also relax "wealth exclusion" clauses to ensure fewer people are disqualified due to asset valuations.
The annual personal income threshold would be raised from NT$500,000 to NT$600,000, while the real estate asset cap would be adjusted to NT$10.25 million, the amendments state.
To prevent people from losing pension eligibility solely because they own and live in a home, the cap on deductions for a sole self-occupied residence would be removed, meaning such property would no longer be included in asset calculations, the amendments state.
To ensure benefits better reflect price fluctuations and preserve real purchasing power, adjustments to the basic pension amounts would no longer be limited to reviews every four years, they state.
If the cumulative increase in the consumer price index reaches 3 percent within two years, an immediate adjustment could be made, they state.
In addition, the draft amendments would remove the requirement for spouses to mandatorily pay premiums for the insured.
Under current regulations, to safeguard an insured persons' financial security, spouses who fail to pay premiums on behalf of the insured within a stipulated period face fines.
Asked whether the proposed changes would help boost participation in the national pension program, Deputy Minister of Health and Welfare Chuang Jen-hsiang (莊人祥) said he hoped that the amendments would lead to higher contribution rates.
At present, the cumulative contribution rate for the national pension stands at about 60 percent, rising to about 90 percent among those aged 65 or older, he said.
The national pension is designed to allow people to continue accumulating contribution years while transitioning between jobs, enabling them to receive higher retirement benefits while being covered by labor insurance during their working years, he said.
The bill is to be sent to the Legislative Yuan for deliberation.
If the increased benefit payments were to be implemented from this year, the required funding could only be allocated after the central government’s general budget completes statutory procedures, and would need to be covered through a supplementary budget of NT$16.98 billion, Premier Cho Jung-tai (卓榮泰) was quoted as saying by Executive Yuan spokesperson Michelle Lee (李慧芝).
Cho urged the Legislative Yuan to expedite deliberations on the general budget and lend its support for the sake of people’s livelihoods and the welfare of vulnerable groups, and to fulfill the government’s commitment to care for all citizens participating in the national pension program, Lee said.
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