Implemented in October 2008, the National Pension Program has now reached its four year anniversary. Currently, the total number of insured is 3.79 million. Recipients of the monthly benefit payment, including those receiving the senior citizen allowance which have been incorporated into the National Pension Program, has reached 1.26 million thus far. Over the past four years, in addition to administering the monthly pension payments and the regular premium collection, the Bureau of Labor Insurance has also implemented an array of convenient measures to meet the expectations of the people.
The incorporation of the senior citizen allowances into the National Pension Program signifies a milestone in the government’s efforts to protect the basic economic life of senior citizens by transforming the social welfare allowance into an insurance benefit plan. A total of 890,000 senior citizens have received the senior citizen allowance in the last benefit payment before the integration. The name of the allowance has since been changed to “Old-Age Basic Guaranteed Pension Payments” and the benefit has been paid continuously under the National Pension Program. In August 2012, the number of beneficiaries for the old-age basic guaranteed pension payments has declined to 800,000. The number of beneficiaries of the old-age pension benefit payments under the National Pension Program, however, has been increasing year by year and reached 340,000 in August 2012. The implementation of the National Pension Program, therefore, has significantly contributed to saving the cost of social welfare allowance and integrating the social insurance system.
In addition to the old-age pension benefit payments, the National Pension Program has, in the past four years, granted disability (basic guaranteed) pension benefits to 28,000 beneficiaries, funeral benefits to 68,000 beneficiaries, survivors’ pension benefits to 52,000 beneficiaries, as well as maternity benefits (a new benefit launched on July 1, 2011) to 18,000 beneficiaries.
To keep pace with the e-business trend and to provide diversified services to the public, the Bureau of Labor Insurance not only initiated e-statement services, but also provides various online services to holders of the Citizen Digital Certificates through its e-service system, including on-line enquiries on the insured years and premium payable/paid, printing of premium payment advice or receipts, change of address for the payment advice and application for old-age pension payments. All these procedures can be completed at home. The Bureau will also proactively send the relevant application forms to people who become eligible for the old-age pension payments or maternity benefits, so that they can file the applications accordingly. A text message will also be sent to the applicant to confirm receipt of the application, so as to ensure the convenience and reliability of the claim services.
As part of the National Pension Insurance Fund, the Bureau has established the relevant regulations and risk control mechanisms over the years to achieve effective utilization and control of the funds. The purpose is to ensure steady profit-making from the funds under an integrated management system. As at the end of August, 2012, the total asset under management has reached NT$125.7 billion. The total profit for this year is NT$4.06 billion or more. The cumulative return rate is 3.61%.
At the present stage, the premium collection rate for the National Pension Program is around 60%. Whilst make-up payments are allowed for overdue premiums of less than 10 years, the Bureau urges people to settle the overdue payments as soon as possible to avoid the financial burden caused by delayed payments and interest incurred thereon, and, in the meantime, assuring their eligibility to the insurance benefit.