Pension reform necessary, but hurts the Kuomintang

One week ago today, after months of growing public fears of the bankruptcy of Taiwan's pension system, Ma unveiled his pension reform plan to the nation, promising that the system would be safe for 30 years. He said that there should be no more worries thanks to his reform.

To accentuate his wholehearted support for the reform, Ma announced that he would not open a special Bank of Taiwan savings account to enjoy the 18-percent preferential interest offered to retired government employees. The rate has been the main target of public criticism against what the opposition party calls the fat retired brass hat. Ma's announcement, aimed at setting an example for top government officials to follow, has been blasted as merely for show because, as a retired president, he will enjoy eight years of fat paychecks worth millions of New Taiwan dollars before he is entitled to a meager monthly interest payment of NT$23,000 (less than US$800). Very few top government officials have followed suit.

According to the Ma plan, the preferential interest rate that government employees and military personnel will enjoy after retirement will be cut to 7 percent by 2020 with the addition of a floating rate fixed by the Bank of Taiwan; however, the total should not exceed 9 percent. The lowering of the rate will affect at least 630,000 men and women.

Many more people will be affected if the plan — which Ma said is yet to be finalized before it becomes a government-sponsored bill in April — is implemented as it is. They are the 9.87 million wage earners covered by the labor pension insurance program. They will have to pay more in premiums and receive much less than they currently do.

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February 6, 2013    richchen35@

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Long live President Ma Ying-jeou, Long Live the Republic of China.

February 7, 2013    carltanong@

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Very good articles Ma reform will have a great impact of disadvantages to the KMT side but will benefit ALL to avoid from going bankrupt. But BENEFICIALLY will go to those DPP, TZU corrupt thirsty Politician in election seasons for political gains.

Let us now compare the contribution of pension proposal between KMT and DPP--.

KMT- Employers 70% Workers 20% Gov't 10%
DPP- Employers 60% Workers 40% Gov't ZERO % .
LESS 10% INCREASE 20% ???????????

The DPP, TSU hate the BIZNIS peoples before, but now courting them with less 10% big discount.
The DPP, TSU understand the plight of the POORS, but increase them with BIG 20%.
The DPP, TSU excluded the government from contribution of ZERO% surprisingly. For what reasons even a 7 graders kid UNDERSTAND.......

DPP Chairman Su Tseng-chang is a VERY, VERY WISE MAN. How can Su govern our country and our people without Worthiness, Merit and Sincerity ???

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