Insured Persons Born in 1958 May Apply for Advanced Payment of Labor Insurance Old-age Pension Benefits once 56 Years of Age.

In response to the queries regarding the age of eligibility for claiming the labor insurance old-age pension benefits, the Bureau of Labor Insurance (BLI), Council of Labor Affairs (CLA) explained that, currently, retiring workers 60 years of age who have had labor insurance for more than 15 years are eligible for the benefits. If they wish, they may also apply for an advanced payment at the age of 55. The age of eligibility for the old-age pension benefits, however, will be gradually extended to 65 years. Insured persons born in 1958, therefore, will become eligible for the advanced payment of the "Reduced Old-age Pension Benefits" no earlier than 2014, when reaching the age of 56.

Labor insurance old-age pension benefits were implemented on January 1, 2009. As of the end of July 2012, more than 243,000 beneficiaries have received payments. The BLI indicated that, as stipulated in the Labor Insurance Act, the age of eligibility for old-age pension benefits was 60 when the labor pension benefit system was first implemented on January 1, 2009. On the tenth year after its implementation, the age of eligibility shall be increased by one year. A further increase of one year shall be enforced in every two years thereafter, until the age of eligibility becomes 65. Based on this schedule, workers born in or before 1957 shall become eligible for the benefit once they attain 60 years of age. Those born in 1958, however, shall not become eligible for the benefits until 2019, when they attain age 61. （Please refer to Appendix 1）

Furthermore, the claim for labor insurance old-age pension benefits may either be filed in advance (reduced old-age pension benefits) or be deferred (deferred old-age pension benefits). The maximum period for both advanced and deferred payments is 5 years, at 4% (reduced payment for advanced claim or increased payment for deferred claim) per year (Please refer to Appendix 2). Based on their respective financial conditions, retiring workers may opt for the most favorable retirement schedule.

For insured persons born in 1958, the age of eligibility for old-age pension benefits is 61 (year 2019). If an insured person wishes to receive early payments (reduced old-age pension benefits), he/she needs to calculate backwards from the year when he/she becomes 61. In other words, the insured will not become eligible for reduced (discounted by 20%) pension payments until 2014, when reaching the age of 56. Similarly, for those who wish to apply for deferred pension benefits at a later date, they should also calculate from the year they attain the age of 61.

The BLI further explained that people born in 1959 or later may use the same method to work out their age of eligibility, and to calculate the age range when they can apply for advanced payments (reduced old-age pension benefits) or deferred payment (deferred old-age pension benefits). This will help them to make proper retirement plans.
Furthermore, the BLI also reminded all workers that, once reduced or deferred old-age pension benefits are approved, the percentage shall not be changed in the future. Labor insurance participants are encouraged to contact the BLI's nationwide "Trial Calculation Service Counters" or access the "Online Trial Calculation Service" through their Citizen Digital Certificate to make accurate calculations and work out a favorable decision for the benefits.
 

Appendix 1: Labor Insurance Old-Age Pension Benefits - Year of Eligibility vs. Year of Birth

Appendix 2: Labor Insurance Old-Age Pension Benefits - Percentage of Increase/Decrease

Note: If the time of advanced (deferred) payment is less than one year, the reduced/increased percentage shall be calculated proportionately in accordance with the actual months of insurance coverage.