"The government will leave no stone unturned in reforming the pension system," Premier Sean Chen told labor representatives at the Council of Labor Affairs' annual policy forum on January 5.
Addressing concerns about the long-term viability of the national pension system, Labor Minister Pan Shih-wei drew an analogy between the system and a large reservoir. "If the reservoir collapses, our people and the entire country will collapse with it. Please be assured that the government will not let the system go bankrupt."
Premier Chen further likened the Labor Insurance Fund (LIF) to a reservoir with water flowing in and out. Aside from employer contributions, the government also injects funds into the LIF each year, such as the NT$120 billion (US$4 billion) budgeted for 2013. But as Taiwan's birth rate continues to drop, inflowing revenues will decrease and outgoing expenses will increase, making it imperative to enact reform now. Taiwan has more than 9 million laborers, he said, their opinions are very important and their interests will be protected.
As for fears the LIF will fall into the red, Chen said there have only been two years where the fund posted operating losses.
The premier also cleared up a misunderstanding that the Executive Yuan rejected an amendment to Article 69 of the Labor Insurance Act last October. This provision requires the government to cover any labor insurance losses before the Bureau of Labor Insurance is established. Chen pointed out that the government is even more obligated to cover shortfalls now that the bureau has been set up. In fact, the article will not affect labor interests in any way, according to a study by Minister without Portfolio James Hsueh, and it can be revised together with other amendments after the pension reform task force has reviewed all related laws. The revision was not rescinded but is still under evaluation, Chen said.
"The government will tackle the pension reform head on. Its commitment to finding solutions has not wavered, nor has its pledge to take care of workers," the premier emphasized. He invited labor representatives to join hands with the government to create a secure future for this and future generations.