Premier Sean Chen emphasized today that the government will not allow the Labor Insurance Fund (LIF) to become insolvent and that workers can rest assured of receiving their pensions.
Labor insurance, a form of social insurance administered by the Council of Labor Affairs' (CLA) Bureau of Labor Insurance, is a guarantee for workers in their retirement, said the premier. The government is bound by duty to propose a comprehensive solution in the shortest time possible. He urged laborers not to panic or withdraw their pensions in light of recent reports about the fund's financial liabilities.
The premier pointed out that the LIF, which covers 9.8 million people, is currently worth over NT$530 billion (US$18 billion) and has stable financial flow. Because the government attaches great importance to the economic security and welfare of retirees, he has already instructed the CLA and the Council for Economic Planning and Development (CEPD) to find a viable solution that carefully weighs premium rates, benefit eligibility, earning replacement rates, the LIF's utilization efficacy and the scope of government responsibility. Ministers without portfolio James Hsueh and Kuan Chung-ming have been appointed to oversee the effort and to come up with solutions that are fair and financially efficient, guarantee equal rights and obligations, and do not favor one generation of retirees over another.
Premier Chen pledged to have a stabilization plan within three months. In the meantime, the CEPD will also review other schemes such as the national pension and pension programs for government, school and military personnel.
In related development, the Cabinet today backed an amendment to Article 2 of the Act for the Protection of Workers from Mass Redundancy. The amendment proposes that a business entity with more than 500 employees may not lay off more than 80 people in a single site in a single day. It also prohibits a business entity from firing more than 200 employees in 60 days, or over 100 employees in a single day, the CLA said. The amendment will be submitted for the Legislature's review.