Public sector requests pension talks with gov't
By Ann Yu, The China PostTAIPEI, Taiwan -- The National Civil Service Association yesterday requested discussion with the government on pension reform after hearing details about the Cabinet's proposed reform policy.
January 31, 2013, 12:06 am TWN
Vice Chairman Yeh Jen-chen (葉仁成) said the civil servant retirement program involves many intricate details, and asked the government to organize a number of meetings with public servants before proceeding further.
The Ministry of Civil Servant's (MOCS) version is not concrete enough, Yeh said.
MOCS has proposed to cut the 18-percent rate gradually to 9 percent over the next eight years.
Only 40 percent of the nation's civil servants currently working still enjoy the preferential interest benefit, Yeh said, which means the change will not make much of a difference.
The reform should be about government officials who have put away a portion of their retirement funds into their 18-percent interest rate accounts, but the reform has failed to take this into account, Yeh complained.
Currently, 40 percent of civil servants are subject to both the new and old preferential interest rate system, Yeh said, so the calculation is very complicated. The government should set up meetings with civil servants to explain the adjustments, he added.
MOCS revealed the reformed pension plans yesterday. According to Lu Ming-tai (呂明泰), director of MOCS' Department of Retirement and Survivor Relief, the 18-percent preferential interest rate will remain the same for those who retired before 1995.
According to MOCS, the 18-percent rate will be reduced to 12 percent in 2016. From that year onward the rate will drop gradually before resting at 9 percent in 2020.