Labor Insurance Old-Age Pension Benefits Are Lifelong and with No Maximum Eligibility Age

An insured person who has enrolled in Labor Insurance in accordance with; meets the requirements of age and years of insurance for old-age benefits; and has left their job and canceled their insurance may apply to the Bureau of Labor Insurance (BLI) for Labor Insurance old-age benefits. If the insured chooses to claim Labor Insurance old-age pension benefits (paid monthly), such benefits will be paid on a monthly basis, and the BLI will only discontinue payments starting from the month following the occurrence of ineligibility regarding payment criteria or the claimant's death in accordance with the regulations. The insured may rest assured that there is no maximum age for claiming the benefits and that it is not true that payments will discontinue at age 83.

The new Labor Pension policies have now been implemented for over 15 years since taking effect in 2005. Therefore, those who have contributed to the Labor Pension for 15 years or more and have reach age 60 are eligible for monthly pension payments. According to the new policies, Labor Pension and Labor Insurance are two different systems. In the Labor Pension system, employers contribute no less than 6% of their employees’ monthly wages to each employee’s individual accounts. When an employee claims benefits, the principal and the accrued dividends in the account will be calculated based on the life expectancy listed in the official pension life table (e.g., for a 60-year-old, the remaining life expectancy is currently 23 years—meaning benefits will be paid until age 83), along with the applicable interest rate and other factors, in order to determine the monthly payment amount. The payments will be disbursed on a quarterly basis. Therefore, since the insured will receive the pension payments until he/she reaches the average life expectancy, there is a maximum number of years for claiming the Labor Pension monthly payments. On the other hand, the Labor Insurance Old-Age Pension is lifelong, and there is no maximum eligibility age.