UPDATE: Bill to phase out 18% preferential pension interest rate passes second reading

The China Post
Date: June 23, 2017
By: The China Post and CNA

TAIPEI, Taiwan — The Legislative Yuan gave the second reading to a bill on pension reform that would


phase out the preferential interest rate in two years.

If the bill passes third reading, the rate would be lowered to 9 percent in the first year and drop to zero in the second year for those who withdraw their pension monthly. For those who choose to claim their pension in one lump sum, the interest rate would be cut to 12 percent in the first year and further reduced by 2 percent every other year until it drops to 6 percent in the seventh year.

However, public sector workers receiving monthly pensions of less NT$32,160 would be able to retain an 18 percent preferential interest rate, according to the bill.

According to the government’s estimation, the new policy will help save NT$28.5 billion in pension payment in 50 years.    [FULL  STORY]

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