The government's objective in pension reform is to keep the nation's various pension systems sustainable by ensuring their financial soundness, remarked Premier Jiang Yi-huah today at a forum for education personnel.
Jiang said heavy losses in the Labor Insurance Fund and the pension systems for military employees, civil servants and public school teachers have drawn much concern since last October. Because these funds are a major source of economic security for people in their old age, the government will work to keep the funds solvent by raising premium rates and lowering income replacement rates, as has been done in many advanced countries.
This is not a matter of forcing people to "pay more and collect less" as some claim, Jiang explained. All pension systems are designed so that workers will not have to contribute too much during their working years and can collect more in retirement. In the past, people could only collect their pension in a lump-sum payment, but monthly annuities were introduced a few years ago to provide greater retirement security. Therefore, the government's objective is to keep these monthly annuity systems viable, he added.
The premier said the pension overhaul will not only ensure that retirees receive their pensions as expected but also give hope to future generations. The problem must be addressed by this generation in a more meaningful way.
As for reforming the education personnel pension system, Jiang said teacher pensions should be calculated differently from those of civil servants because primary/secondary teachers have different jobs from government workers, and college professors are required to undergo a long and rigorous training process.
Lastly, on behalf of the nation, Premier Jiang conveyed his gratitude and appreciation to teachers everywhere for their important work of educating Taiwan's future.
Today's forum was attended by over 200 people from the Hsinchu area, including education representatives, retired teachers and active teachers from all school levels. The Ministry of Education also delivered a presentation on pension reform for education personnel.