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September 20, 2017

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Pensions withdrawn after losing ROC citizenship

TAIPEI, Taiwan -- The preliminary examination for the amendment to Article 27 of the Labor Insurance Act was passed yesterday, adding a bylaw pertaining to individuals who have either lost or forfeited their Republic of China nationality.

During a meeting of the Legislative Yuan's Social Welfare and Environmental Hygiene Committee (社會福利及衛生環境委員會) yesterday, committee members agreed to implement Article 27-1 into the existing Labor Insurance Act (LIA), which alters the existing regulation on the withdrawal of retirement pensions for those who have either lost or forfeited their R.O.C. citizenship willingly.

However, the sub-article seemed set to affect the rights and interests of mainly emigrant individuals. Following the amendment, the entire pension fund of an individual without citizenship will be settled in a one time withdrawal.

In the future, annuity will cease distribution from the second month after an individual is no longer a citizen of Taiwan. Instead, a one-time issue of the entirety or remainder of pensions will be granted.

Department of Labor Insurance Director Shih Fa-chi (石發基) also advised that should an individual reinstate his or her citizenship, no annuity shall resume as the entire pension should have been withdrawn in its entirety previously.

Shih went on to add that the pension rights of any non-citizens already receiving annuity prior to the official implementation of the amendment is protected under the previous LIA, and they will be given the choice to stick to the original annuity plan or receive the remainder in one payment.

When questioned by legislator Su Ching-chuan (蘇清泉) regarding how the government should deal with retired workers who choose to emigrate to a foreign country after 2 to 3 years of retirement, Shih said that he believes the workers will factor the policy into their decision to migrate abroad.

Legislators Chiang Nai-shin (蔣乃辛), Wu Yu-jen (吳育仁) and Ting Shou-chung (丁守中) later said that since the initial implementation of LIA, there has been a significant amount of problems in annuity programs on the qualifications of non-R.O.C. citizens, which could be resolved by enforcing the amendment on non-citizens.

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