Reuters
Date: Jan 4, 2017
By: Faith Hung and Umesh Desai
Taiwan’s military pension fund may be in default by 2020 after years of widening deficits, raising alarm
Demonstrators protest against the reforming of Taiwan’s deficit-ridden pension programs, in Taipei, Taiwan December 31, 2016. Reuters/Sun Su
about the island’s defense stability when tensions are heating up with political foe China.
The government says an urgent overhaul of the pension system is needed as large payouts are no longer sustainable for the export-reliant economy, with contributions crimped by slower economic growth since the 1990s and a rapidly aging population.
Some 120,000 on military pension benefits and another 200,000 in the civil service are nervous about pension reform, a priority of President Tsai Ing-wen. A restructured scheme could result in having to wait longer to retire as well as smaller pension payments, among other changes.
“The biggest problem we are facing with the reform is fear. It is making everyone anxious and uneasy,” said Hu Chu-sheng, a retired former Lieutenant General who had served in the army for 40 years.
“When soldiers cannot focus on their duty, it weakens the effectiveness of Taiwan’s military forces,” Hu said. “It would then be easy for China to take Taiwan without even getting blood on their knives.” [FULL STORY]
