President Ma Ying-jeou expected to announce annuity reform plan today
By Adam Tyrsett Kuo, The China PostTAIPEI, Taiwan -- President Ma Ying-jeou is scheduled to announce the government's annuity reform plan today, after a meeting with the heads of the Executive Yuan and the Examination Yuan.
January 30, 2013, 12:07 am TWN
With regard to labor insurance, the Cabinet said that it will review premium rates and income replacement rates, which is the ratio between retirees' pensions and their previous salaries.
According to the Cabinet's report, premium rates may be raised to 9 percent by 2015, and may thenceforth see annual increases of 0.5 percent until reaching 19.5 percent in 2036.
The “average month insurance salary” is used to calculate the amount a retiree is given as part of his or her old-age pension benefit. The figure itself is currently calculated by averaging the laborer's 60 biggest paychecks during the period of coverage.
The Cabinet said in its report that it may expand the average to include an additional 12 months every year until it reaches 180 months.
The government is also gravitating toward passing legislation to make itself the final guarantor of annuity payments.
With regard to public school teachers, the government is leaning toward a “rule of 90” instead of the current “rule of 75” — the numbers refer to the years a person has worked combined with his or her age. Under a rule of 90, a person's age and years of service have to add up to 90 before he or she may receive full monthly pension payments.
As to military personnel, regulations may remain largely unchanged, while officers with the rank of major and above may be allowed to serve longer.
Cabinet, Examination Yuan to Hold Press Conferences
The Executive Yuan and Examination Yuan are expected to hold press conferences today to explain the details of the government's annuity reform plan, after the president makes his announcement.
Furthermore, Vice Premier Jiang Yi-huah (江宜樺) is slated to give television and radio interviews with Cabinet officials to clarify the administration's strategy.
According to local reports, the Executive Yuan will also hold a second forum, after Chinese New Year, to gather grassroots opinion on the government's plan, in preparation for legislative amendment.
The Cabinet said that it will promptly inform legislators once forum dates have been set.