The Taiwanese social welfare system was established in 1950, and has since been providing the citizens, nationals and residents of the country with benefits in the form of the public services. However, the lack of pension and old age support for the retired had been a topic of debate for years, with the scheme finally being approved in 2008.
According to the census report of 2006, an estimated 10.72% of the population was in the retirement category - this figured is expected to triple by 2040. With the decline in the fertility rate, this figure is expected to increase steadily therefore the implementation of the pension fund was a monumental step for a better future for Taiwanese retirees.
The primary objectives of the Pension Fund are outlined below:
Safeguard and protect income for the retired individuals
Ensure that there is funding for the pension
Make sure that all retirees are kept in good care
Fund contribution and benefit provisions
First, the Fund contribution
Pension fund costs of the payment of civil servants in accordance with the law, education, military personnel times base salary plus 8-12% of the rates calculated maximum Retirement Act (civil servants into force on January 1, 100 years, correction of 15%). Pension funds set aside rate of 8%, the start-up of the new Pension system by 8% since January 1, 1991, according to the 1st June 1989, the Fund actuarial results, the military, public servants, teachers, staff, adjusted to 8.8% complex in accordance with the resolutions of the Legislative Yuan since 1993, three years to adjust aside rate to 12% (93 by 8.8% to 9.8% from 1994, adjusted from 9.8% to 10.8% in 1995, from 10.8% adjusted to 12.0%), it is the current contribution rate of 12%. Pension Fund the total cost payable monthly, the payment of 65%, and personal self-pay 35%.
Second, the Fund shall be paid
Lump Sum Pension working the same level personnel base salary plus 1 times base effect: retirement, each serving one year to give 1.5 base, up to 35 years to give 53 base. 2. Monthly pension: base salary plus 1 times the personnel to the job the same level as the base, each serving one year, according to the base 2% to give a maximum of 35 years to give 70% limit. Paid once every six months, issued January 16 and July 16, respectively. Jianling 3 monthly pension: are Jianling 1/2 of a pension and 1/2 months pension, Jianling 1/3 of the pension and 2/3 of the monthly pension Jianling 1/4 The one-time pension and 3/4 of the monthly pension (Jianling public servants can only choose 1/2). Its given reference time pension and monthly pension calculated and multiplied by Jianling proportion. Solatium: the death of monthly pension paid to personnel or Jianling monthly pension staff give the bereaved families once solatium. Bereaved families, such as parents, spouses or minor children (new adult civil servants disabilities without children earning capacity), was the original collar monthly pension half of the the branch collar month solatium.
1. serving less than 15 years, pension given time, without issuing a separate annual pension. Office every full year, giving a 1.5 base, ending less than 6 months to give a base, at least for more than 6 months, 1 year dollars (came into effect on January 1, 100 years of official personnel pension law, for a person under the age of 1 year, a month to give 0.125 base; another serving under the age of 10 years, worked imposed in conformity with the provisions under the age of 15 years to the shirt outside, each less a month plus to 1/12 basis ). 2. Worked more than 15 years, served for 15 years in addition to a year to give the five base year pension, once a pension, and the other to give the 15 basis of every subsequent increase plus years to 0.5 base, ending under the age of 6 months, does not count; full for more than 6 months to a year on year (civil servants under the age of 1 year by a month to give 1/24 of the base), the highest Jiyu 25 base ( 30 base civil servants).
(C) Severance pay
For the purpose of removal serving the same level of the effective date of the officer's base salary plus 1 times base, each serving one year to give the 1.5 base, given a maximum of 35 years 53 base.
(D) made to restore the to pay Pension Fund expenses
to participate in accordance with the provisions of sub retirement severance midway leavers or because the case dismissal, may apply for reimbursement of my original Pension Fund to pay expenses and to Taiwan bank deposits years rate plus accrued interest, to a reimbursement.