Since its implementation on July 1, 1994, the Labor Pension has issued its first pension payment at the end of April. Members of the workforce who have applied with the Bureau of Labor Insurance who have reached 61 years of age has received an individual Labor Pension settlement of NT $3,840,000. Based on an average life expectancy of 22 years, the monthly pension amount received is NT $16,000. The Bureau of Labor Insurance will issue the monthly pension to an account at the designated financial institution on a quarterly basis (Before the end of February, May, August and November every year) until the end of the average life expectancy.
Labor Pension under the new system—together with Labor Insurance Annuity— will help build a comprehensive framework of financial security for Taiwan's workforce. To start, a member of the workforce must apply to the Bureau of Labor Insurance for the Labor Pension, and he or she may receive a monthly pension of approximately NT $16,000 under the new Labor Pension system. In addition to the amount receiving monthly from the Labor Insurance Annuity of NT$23,000, the accumulated amount is NT$39,000 per month. This Labor Pension Dual Protection Plan enhances the financial security of retired living among members of the workforce.
Revisions to Section 12 of the Implementation Rules of Labor Pension Act by the Council of Labor Affairs on March 13, 2012 gives express provisions in Section 25 of the Rules that prior to the activation of pension insurance, the worker and its employer shall, upon agreement, settle the Labor Pension under the old system and transfer the pension in full to a personal account. A worker who has accumulated more than fifteen years of service after taking into account the requirements of the new system and a personal account shall receive Monthly Pension according to Section 23 of the Rules. At present, 39 people qualify.