Legislature Passes Military Pension Reforms|軍人年改三讀通過 樓地板確定38990元
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The highly controversial military pension reform has passed its third reading, which sets the minimum monthly pension for veterans at NT$38,990. President Tsai Ing-wen posted a message on Facebook thanking the legislature and her administration for working together to complete this difficult task. Meanwhile, anti-pension reform group 800 Heroes said it will continue fighting for their rights.
Amendments to the Act of Military Service for Officers and Noncommissioned Officers of the Armed Forces have passed.
On June 20, the Legislative Yuan passed the third reading of amendments to the Act of Military Service for Officers and Noncommissioned Officers of the Armed Forces following a 12-hour review, paving the way for military pension reforms. Under the reforms, the minimum pension for military retirees is NT$38,990. The pension rate is 55 percent for those who completed 20 years of service before retiring, with an additional 2 percent for each additional year served. The income replacement ratio upper limit will be 90 percent for officers and 95 percent for noncommissioned officers. The amendments also include new requirements on pensions for the family members of those killed in service. Spouses must be at least 55 years in age and have been married for over 10 years to be eligible to apply to receive one-half of salaries. Meanwhile, as the preferential interest rate has been rescinded, those who receive a monthly annuity payment will see the interest rate phased out over 10 years. Those who received their annuities as lump sums will see it cut to 6 percent over six years. The statutory contribution rate will be gradually increased from the current 12 percent to 18 percent.
Prior to the third reading, the Kuomintang legislative caucus convened a press conference to criticize the government for mistreating the armed forces, fomenting social conflicts and refusing to learn from past failures.
Deceiving the military, deceiving the military. Incorrect pension reforms, incorrect pension reforms. Destabilizing the country, destabilizing the country.
Meanwhile, President Tsai Ing-wen used Facebook to laud the new military pension system following last year's new civil servant and public schoolteacher pension system. She claimed these reforms will avert bankruptcy in 2020, and guarantee a safety net for military personnel. She also thanked the legislature and her administration for completing this difficult task. The Democratic Progressive Party legislative caucus originally sought to implement the new system on July 1, but changed its mind after considering a comprehensive set of complementary measures will be needed. The Executive Yuan will make the final decision. However, Minister without Portfolio Lin Wan-i said the Executive Yuan is still targeting July 1, when the changes to the civil servant and public schoolteacher pension system will be implemented. Anti-pension reform groups fear there will not be enough time to complete all the required administrative tasks.
Every military personnel has a different situation, so everyone has to be handled individually. That will require at least half a year to eight months to complete.
The Veterans Affairs Council is calculating the number of people who will be affected and the amount of money involved. According to the latest statistics from April, the number of affected people will be 62,975, who will on average see a pension reduction of NT$10,643. Generals will be the most affected by the changes, with the 2,253 affected people receiving an average of NT$21,950 less. Meanwhile, 49,242 officers will see their pensions cut by an average of NT$11,036. Veterans' group "800 Heroes" says it will use appeals and constitutional interpretations to protect the rights and benefits of veterans in the future.
