The National Pension Program provides five types of benefit payments, including old-age pension, maternity benefit, disability pension, survivors pension, and funeral benefits. If an insured fails to pay the premium for the National Pension Insurance on time, he/she may still claim for the above payments as long as he/she manages to settle all the overdue payments within ten years.
Under the National Pension Program, an insured may claim disability pension, survivors pension or funeral benefits if, during the insured period, he/she suffers a severe mental or physical handicap or passes away. Insured women who give birth to a child after July 2011 may also claim maternity benefits under the National Pension Insurance System.
Furthermore, to take care of basic economic needs and avoid devaluation of the fund caused by inflation, starting from January 2012, the amount of the old-age pension according to Formula A has been increased from NT$3,000 to NT$3,500. The basic guaranteed amount for the disability pension has also been adjusted from NT$4,000 to NT$4,700. In the future, the amount of the pension shall be adjusted in four-year intervals based on the growth rate of the consumer price index.
The National Pension Program also allows a 10-year grace period for premium payments, since most of the insured are economically disadvantaged without a stable job or source of income. Individuals unable to complete payments on time are allowed to schedule repayments until their financial condition improves. Daily interest will be charged on overdue premium payments based on the one-year, fixed deposit interest rate announced by the post office. (Interest will be waived if the monthly payment amount is lower than NT$30). The insured will be guaranteed of his/her rights to claim for all of the benefits as long as he/she settles all outstanding premium and interest payments within ten years. To reduce financial pressure, individuals who are unable to settle overdue payments in a lump sum may arrange the overdue payments in installments or apply to the Labor Insurance Bureau for premium installments.
The government shall subsidize 40% of the premium. To receive 100% coverage from the National Pension Program, the insured only needs to contribute 60% of the premium. Individuals with lower family income may contact the city/county government or township/village/district offices in which their household is registered to verify their individual “Below Standard Income” premium status, and thereby be granted additional subsidies from the government to reduce the financial burden of the program upon the household.