Military to seek higher minimum pensions than civil servants: official

2017/11/12 19:40:40 fontsize-small fontsize-default fontsize-big
CNA file photo

CNA file photo

Taipei, Nov. 12 (CNA) The Ministry of National Defense plans to seek a minimum monthly pension payment for its retired personnel of more than NT$32,160 (US$1,090), which is the amount offered to retired civil servants, according to a ministry official who spoke on condition of anonymity.

The ministry hopes that a higher "pension floor" will be set for military personnel, given the nature of their service compared with civil servants, the official said, ahead of a news briefing on the issue scheduled for later this week by the National Pension Reform Committee.

A draft bill on military pension reform is also scheduled to be released later this week, according to Minister Without Portfolio Lin Wan-i (林萬億), who heads the pension reform committee.

Meanwhile, the defense ministry official said the ministry is also hoping that the government will extend the preferential 18 percent interest rate on military veterans' retirement savings for longer than two years.

The issue is related to a recent amendment to the Act Governing Civil Servants' Retirement, Discharge and Pensions (公務人員退休資遣撫卹法), which will take effect on July 1 next year.

The new regulations set the minimum monthly pension for retired civil servants at NT$32,160 and allow for the retention of an 18 percent government-subsidized preferential interest rate on retirement savings accounts if the pension falls below the minimum.

However, for civil servants who receive NT$32,160 per month or more in pension payments, the interest rate on their savings will drop to 9 percent in the period July 1, 2018 to Dec. 31, 2020, and will be cut to zero from Jan. 1, 2021, according to the amended law.

(By Lu Hsin-hui, Ku Chuan and Evelyn Kao)

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