Mr. Luo Wuu, President of Bureau of Labour Insurance (BLI) of Taiwan, said the Labour Pension Fund recorded a profit of NT$40.63 billion in 2012. Dividend payments were made to the fund’s member on January 1, 2013. The largest payment was NT$500,000 but on average, the fund’s member received a about NT$4,459.
The amount of dividend payment was calculated based on accumulated money in each member account. BLI’s Pension Division revealed that accounts could have accumulated money of up to NT$ 10 million because some members closed their account in the old system and transferred the money into the account in the new system, making them major insured persons.
In the old system, an employer remitted a contribution into a reserve account. Once an insured person was retired, the employer would use the money in the account to pay for him. But in the new system, an employer has to remit a contribution of 6 percent of an insured person’s monthly salary to his pension account. Profits from the Labour Pension Fund will also be distributed in the form of dividend payment to each pension account on March. The amount of money in each pension account is equal to contribution paid by his employer plus dividend payments received from the fund.
At present the Labour Pension Fund has about NT$1.4 trillion. Last year, the fund had NT$40.6 billion in the new system and NT$25.3 billion in the old system, the second highest level since 2009.
Office of Labour Affairs in Taipei
