eforms postpone bankruptcy threat by 19 years
By: Matthew Strong, Taiwan News, Staff Writer
TAIPEI (Taiwan News) – Thanks to the reforms passed by the Legislative Yuan Tuesday, the country’s
pension system will not be threatened by bankruptcy until 2050, a government official said.
The need to avert financial problems for the retirement system is one of the main reasons why the administration of President Tsai Ing-wen (蔡英文) has been pushing hard for reform.
One of the key elements was the abolition of the 18-percent preferential interest rate for savings by retired civil servants, teachers and military staff, which will be completed by 2021.
The change will save NT$14.5 billion (US$477 million) in interest payments per year, said Lin Wan-yi (林萬億), the deputy convener of the pension reform commission. [FULL STORY]