26. I am a worker covered exclusively by the old labor pension system. Can I also make voluntary pension contributions under the new labor pension system? Furthermore, am I still allowed to settle my retirement benefits accrued under the old-system seniority and transfer it into my individual account at the Bureau of Labor Insurance?
- Although workers covered exclusively by the old labor pension system under the Labor Standards Act (the old labor pension system), may begin making voluntary pension contributions of up to 6 percent of their monthly salary in accordance with the Labor Pension Act (the new labor pension system).
- Workers covered exclusively by the old labor pension system who make voluntary pension contributions according to the regulations and have met the retirement criteria under the Labor Standards Act may also, during the duration of the labor contract and upon mutual agreement between the employer and the employee, settle the retirement pension for their seniority under the Labor Standards Act.
The retirement pension settled by mutual agreement between the employer and the employee may be paid from the individual labor retirement reserve fund account stipulated under the Labor Standards Act. The settled retirement pension shall be transferred in full directly from the Bank of Taiwan Co., Ltd. into the individual labor pension account at the Bureau of Labor Insurance.
- After the employer and the employee mutually agree to settle the retirement benefits, if the employee continues to work, the employer shall, upon termination of the labor contract, calculate and pay the retirement benefits for the employee’s subsequent years of service based on the average wage at the time the labor contract is terminated, pursuant to the Labor Standards Act and other relevant regulations.
- After the employer and the employee mutually agree to settle the retirement benefits, the retirement benefits accrued from the employee’s subsequent years of service may, during the term of the labor contract, be settled annually by mutual agreement in accordance with the applicable regulations. And the entire settled amount shall be transferred into the employee’s individual labor pension account at the Bureau of Labor Insurance.