Labor insurance fund gains NT$6.5 bil. from stocks
The China Post news staff
October 16, 2012, 2:38 pm TWN
Taiwan's labor insurance fund pocketed a gain of NT$6.5 billion from stocks in September, thanks to a rally last month in the wake of the quantitative easing measures launched by the U.S., said the Labor Insurance Bureau yesterday.
For the first nine months, the fund bagged a gain of NT$29.2 billion, translating into a yield rate of 5.89 percent.
According to the bureau, this year the fund is expected to post a positive gain, which will also make up for the loss from last year.
The bureau said that since 1995, the labor insurance fund's gains from stocks have exceeded NT$230 billion, or a yield of four percent, higher than the 2.9-percent average rate for a two-year time deposit at the Bank of Taiwan.
The fund had been losing money in stocks earlier this year due to various negative factors. Yet with a stock turnaround in June, the fund has made positive gains since, pocketing NT$6 billion in both June and July, NT$5.5 billion in August and NT$6.5 billion last month.
With reports that the labor insurance fund may run out of money, the bureau said right now the fund stands at over NT$530 billion, which is ample to pay for the annuity payments for retirees.
The bureau urged laborers not to panic and get their money out in a single lump-sum payment, which may not be worthwhile compared to the monthly annuity payments that people can collect for life. Once people choose a payment method, they can't change it, the bureau reminded.