1. How is the amount of gains distributed to an individual labor pension account calculated? When will the gains obtained from operating the fund be distributed? How can a worker inquire about the gains distributed to their account? What happens if a loss is generated from operating the fund? Will it affect my pension (principal)?
- The Labor Pension Fund is to be invested and utilized by the Bureau of Labor Funds, Ministry of Labor, and all the profit gained is to be distributed to individual labor pension account. The formula for calculating profit distribution is based on labor pension fund's annual profit/loss times the daily closing balance of each individual labor pension account, and then divided by the daily closing amount of the fund in that year to calculate the profit and the amount is using dollar as unit and rounded up at NT$0.50.The reason is in consideration that the payment date and amount for each individual account are different so each account's contribution to the fund is also different. In order to be fair, when calculating profit distribution, it is to use the ratio of each individual account's daily closing balance to the daily closing balance of all labor pensions to calculate the profit distributable to each account. (This is the same principle as financial institution's calculation of interest for deposit using daily deposit balance)
- The Bureau of Labor Funds, Ministry of Labor shall notify the Bureau of Labor Insurance of the profit or loss from operating the Labor Pension Fund in the previous year before the end of February of each year, and the Bureau shall distribute the gains before the end of March of every year.
- You can visit the Bureau's headquarters or local offices, use your Citizen Digital Certificate, Mobile Citizen Digital Certificate, Mobile Phone Verification, Virtual Labor Insurance Certificate or Financial e-Certificate to log into the Bureau's system on the website, or use your labor protection card or Chunghwa bank card (please apply to the Bureau of Labor Insurance information inquiry service at the post office) to inquire about the distributed gains at an ATM of the card-issuing bank.
- If a loss is incurred in operating the Labor Pension Fund, the amount distributed to your individual account may be negative, but this reflects only the fund’s performance for that year. The loss will not affect your labor pension rights and interests. When a worker, dependent or designated beneficiary claims the pension, if the average annual profit obtained from the amount accumulated from the starting contribution day to the pension claiming day is lower than the average interest rate of a two-year term deposit in local banks, then the profit issued (guaranteed gain rate) is calculated using the average interest amount obtained from 2 year term deposit. The shortfall will be covered by national treasury. Labor rights and interests are definitely protected.