Ma may reveal annuity reform plan next Wed.: report
By Adam Tyrsett Kuo, The China PostTAIPEI, Taiwan -- The Cabinet's highly anticipated annuity reform strategy is expected to be announced on Wednesday, Jan. 30 and may be announced by President Ma Ying-jeou at the Presidential Office, according to local reports.
January 22, 2013, 12:04 am TWN
The Examination Yuan is slated to hold a forum on Tuesday, Jan. 29 in which the Ministry of Civil Service (銓敘部) will explain the specifics of its annuity-related proposals before Examination Yuan officials.
The Cabinet and the Examination Yuan have reportedly been holding intensive discussions on annuity reform-related strategies over the past week.
The Examination Yuan recently submitted a draft for the Cabinet's reference, while the latter is reportedly still in the process of making labor insurance-related calculations.
Once both sides have fleshed out their proposals, they are expected to report to the president.
Officials said that one of the major challenges has been the question of how to narrow the gap between civil servants and laborers, while another major challenge has been the question of how to strike equilibrium between workers and retirees.
'Rule of 90'
With regard to full pensions, the Examination Yuan is reportedly leaning toward a “rule of 90” — which refers to the number of years a civil servant has worked combined with his or her age.
Full monthly pensions for civil servants are currently allocated according to a “rule of 85,” which means that they can receive full monthly pensions at the age of 60 if they have accumulated 25 years of service, or they can choose to retire at 55 and receive their monthly pensions if they have accumulated 30 years of service.
One official said that the government may implement a “rule of 87 or 88” first before gradually moving to a rule of 90.
In November last year, Examination Yuan President Kuan Chung (關中) said that implementing a rule of 90 may be necessary to stabilize the civil servants' pension fund. According to experts, if the government were to implement such a policy, it would save one-third on pension payments.