MND may raise service-year pension requirement
The China Post news staffTAIPEI, Taiwan -- The Ministry of National Defense (MND) is considering an increase to the limit on the number of years military personnel have to serve before they can receive their lifetime monthly pensions, according to local reports.
January 27, 2013, 12:04 am TWN
MND spokesman Luo Shou-he (羅紹和), however, said that he has yet to receive concrete information regarding the military's pension reform, and that the MND will follow the Cabinet's policy.
The Executive Yuan is expected to announce its annuity reform plan next week.
According to current regulations, military personnel may retire and receive lifetime monthly pensions after they have served more than 20 years.
The Defense Ministry is reportedly planning to increase that number to 25 years, in order to solve the financial problems of its pension fund, according to local reports.
The report also claimed that in the future, if military personnel choose to retire before reaching 25 service years, they may receive pensions “at a discount.”
For example, a person retiring after reaching 20 years of service may receive 60 percent of his or her full pension, the report said.
Military sources have also been quoted as saying that although income replacement rates will be adjusted, given the nature and risks of being a member of the armed forces, rates will not be adjusted significantly.
The income replacement of lieutenant generals, major generals and those below the rank of colonel currently stand at 75 percent, 88 percent and 90 percent, respectively — substantially higher than the average retired laborer.