Official asks for 2nd chance on retirement plans

Kuomintang lawmaker Chi Kuo-tung (紀國棟) proposed a draft law that allows retired labor pension collectors a grace period to change their minds after they opt to gather their payments in lump sum or as an annuity.

The Council of Labor Affairs (CLA) has refuted the idea, saying that it would affect the stability of the labor insurance funds.

As the CLA revealed in late 2012 that the labor insurance funds might go bankrupt in 2027, many anxious people crowded to the Bureau of Labor Insurance (BLI) to claim their retirements in one lump sum. Although the CLA warned multiple times that it would not be reversible once people choose their plans — annuities or lump sum — the funds experienced an outflow of deposits amounting to NT$76.8 billion in two months.

Chi proposed a draft amendment to the Labor Insurance Act, requesting the CLA to allow a six-month grace period for claimants to change their minds about their pension plans. He added that claimants should be able to change once in their lifetimes.

Chi said, “Though this would add a little administrative cost, the task would not be too difficult. That way, the system would provide more humanity for the laborers.”

CLA representative Chen mei-nu (陳美女) responded that it would be difficult for the labor fund to operate normally if it allowed people to have second chances. “Workers have the right to choose whatever plan is suitable for them,” she explained, urging them to think carefully before they choose.

BLI Deputy General Manager Lee Song-lin (李松林) added that the bureau would do their best to take into account public opinion in the future concerning retirement plans.

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