Former legislators Shen Fu-hsiung and Lin Chuo-shui have both criticized the government's pension reform plans. Vice President Chen Chien-jen has responded on Facebook, saying that the pension contributions of the younger generations will not be used to pay out the pensions of retired public servants. As for whether a completely new system is needed, Chen emphasized that the current crisis is too urgent and that changes must be made in the here and now to solve the pension fund financial crisis.
Vice President and Presidential Office pension reform committee convener Chen Chien-jen has responded to criticism given by former DPP legislators Shen Fu-hsiung and Lin Chuo-shui regarding the government's reform plans. Lin worried that the reform will entail using the pension contributions of young public servants to support the payouts to retirees, meaning that young people will pay more and receive less. Chen said that, under the government's current plan of an 18% contribution rate and an income replacement rate of 60%, the payout enjoyed by young people when they retire will be roughly equal to their current contribution. However, Lin has countered that the government should not be warning of a pension fund bankruptcy if payouts were truly equal to contributions.
==LIN CHUO-SHUI former legislator==
If contributions are equal to payouts, then how can the pension fund run dry? The only explanation is that (young people's) contributions are being used to fund the payouts of the current retirees, who contributed little. These retirees are depleting the fund. So (Chen's) explanation is avoiding the issue and completely detached from current reality.
Shen Fu-hsiung is also calling on the government to establish a new pension system for young people who are just starting their careers. Chen said that he agrees with this idea, but that current needs are too urgent. Using the analogy of a suit, he says that the current system is like a suit that society has already put on. Alterations must be made to the suit right now to buy time so that a new suit, that is a new pension system, can be made before the old suit is tattered. However, Shen says that immediately designing a new system is the best solution.
==SHEN FU-HSIUNG Former Legislator==
We also need to design a new down jacket for all of the pension contributors, regardless of occupation. So then when it's cold, everyone can put the jacket on. The down jacket and the old suit should mesh together to form one single layer of protection.
Despite Chen's efforts in responding to criticism, the future of pension reform still depends on the Legislative Yuan. Shen Fu-hsiung says that he will meet with each legislative caucus to explain his thoughts on the issue.
TRANSLATED BY：JOHN CHEN
記者 張志雄 吳其昌 台北報導