KMT bill demands NT$80 billion for pension fund

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The Chinese Nationalist Party (KMT) has proposed a bill requiring the government to subsidize the Labor Insurance Fund with at least NT$80 billion ($2.71 billion) a year to prevent it from going bankrupt , said William Tseng (曾銘宗), KMT caucus whip. on Sunday.

The KMT caucus called on the government to deal with the impending bankruptcy of the fund, which is intended to provide retirement pensions to workers.

He proposed an amendment to the Labor Insurance Law (勞工保險條例) for the government to allocate at least NT$80 billion to the fund every year to ensure its sustainability, Tseng told a conference. release in Taipei.

Photo: ANC

The amendment would also require that the finances of the fund be clearly defined and that the government be responsible for ensuring that it meets its disbursements.

A 2020 Labor Ministry report said the fund had a hidden debt estimated at NT$10 trillion, which was growing by NT$500 billion every year, KMT Caucus Deputy General Secretary Hsieh Yi said. -fong (謝衣鳳).

The fund’s financial situation is rapidly deteriorating, Hsieh said, adding that over the past five years it has posted losses and could go bankrupt by 2028.

Tseng said that although the government promised in 2017 to improve pension systems for war veterans, public school teachers, civil servants and workers, it had yet to take steps to reform the pension system. employment insurance beyond the allocation of funds.

Unless the central government subsidizes the fund with at least NT$80 billion a year, it would go bankrupt within six years, affecting more than 10 million workers, Tseng said, citing ministry data.

He said that when he asked Prime Minister Su Tseng-chang (蘇貞昌) about the issue during a legislative question-and-answer session in 2020, Su told him that the government would take responsibility for the remittances. insurance and prevent the Labor Insurance Fund from becoming insolvent.

Su said a proposal to reform the fund would be submitted to the legislature by 2024, Tseng said, adding that he now wanted the government to say when it would propose such a bill.

KMT lawmaker Cheng Cheng-chien (鄭正鈐) said the government should improve the management of the fund by studying the mechanisms for managing pension funds and compensating private schools.

Only by improving the management of the labor insurance fund and keeping its balance at a stable level can it be prevented from going bankrupt, Cheng said.

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