Labor Pension Act related affairs

  • Last Modify Date:2020-11-30

 

The Annuity Insurance System

The labor pension system (the new system) prescribed in the Labor Pension Act adopts a dual implementation track of individual retirement pension accounts and annuity insurance. A business entity with 200 or more workers, after acquiring the consent of the labor union, or the labor-management meeting if there is no labor union, as well as approval from the Ministry of Labor, can insure under the Annuity Insurance that complies with the Insurance Act for workers who have expressed their choice in writing to insure under the Annuity Insurance.

The insurer of Annuity Insurance is an insurance company approved by the central competent authority and the insured of the Annuity Insurance contract is the employer who will insure from the same insurer. The workers are the insured persons and beneficiaries. The Annuity Insurance premium to be paid by the employer each month may not be less than 6% of the monthly wages of the worker.

Once a worker has chosen to insure under the Annuity Insurance, the employer need not appropriate labor retirement pension contributions to the individual labor pension account for the worker. For workers who have chosen not to insure under the Annuity Insurance, the employer is required to appropriate labor retirement pension contributions to the individual labor pension account each month.

When insuring under the Annuity Insurance, business entities can refer to Articles 35 to 39 of the Labor Pension Act and the Regulations for the Implementation of Annuity Insurance under the Labor Pension Act.

  • News From:Department of Employment Welfare and Retirement
  • Publish Date:2015-04-20
  • Hit Rate:152458