Labor Insurance Pension Passed Three Readings on July 17, 2008 and Shall be Enforced Commencing on January 1, 2009
After 15 years of planning, labor insurance pension passed three readings by the Legislative Yuan on July 17. According to the Council of Labor Affairs, it shall recommend the Executive Yuan to enforce the law commencing on January 1, 2009. Relevant essential points are as follows:
1.A worker has the right to select one lump sum payment or pension benefits: A worker who has coverage record prior to the enforcement of revised Act may choose to receive old-age and disability benefits in one lump sum or pension benefits.
2.A worker who is at least 60 years old and has been insured for 15 years may apply to receive old-age pension benefits and select one of the two methods of payment as follows:
A.Average monthly insurance salary x insured years x 0.775% + NT$3,000
B.Average monthly insurance salary x insured years x 1.55%
3.An insured person who dies during the period of receiving old-age or disability pension benefits, his/her survivor(s) may receive the difference of one lump sum payment less the received pension benefits without any restrictive condition. Existing rights and benefits of the said laborer is not affected. Survivor(s) who qualifies to receive the pension may apply to receive the survivor pension benefits.
4.Pension benefits are calculated according to the average of the 60 highest months' insurance salary: This is advantageous to middle-age or old-age workers and women who are re-employed and receiving lower salaries.
5.Regarding a worker who qualifies to receive pension benefits but defer to apply for the benefits, the amount of pension will be increased by 4% for every one year of deferral. Regarding a worker who has not yet reached the age of receiving pension benefits but applies to receive pension benefits within 5 years in advance, the amount of pension benefits will be reduced by 4% for every one year of advance.
6.Insurance premium rate is 7.5% to 13%. Rate for the first and second year of enforcement is 7.5%, with an annual adjustment of 0.5% to 10% for the following years. Commencing from the year of adjusting to 10%, an adjustment of 0.5% shall be made for every 2 years with a maximum of 13%