Civil Service Pension System

Monthly Pension

Preface

• Civil Service Pension System (Include Laws, Qualifications, and Pensions)

• Issue

• Reformation

• My point of views

Civil Service Pension System

• Laws: • Old Civil Service Retirement Act (CSRA) enacted in the

year of 1943.• New Civil Service Retirement Act (CSRA) enacted in the

year of 1995.

• Qualifications:• At least 25 years of creditable services• At least 5 years of creditable services at the age of 60

or older• Monthly pension requirement: at least at the age of 50

or older. Or, a lump-sum pensions.

Civil Service Pension System

• Pension:• Monthly Pension: Old CSRA + New CSRA + Interests of

Civil service Insurance• Old CSRA:

– basic pay ×﹝75% + (years of creditable service –15) ÷100 ﹞+ 930

• New CSRA: – years of creditable service × 2% × basic pay × 2

• Interests of Civil service Insurance– (basic pay × 36) × 18% ÷12

Issue

• An irrational situation—the retiree’s payment is higher than the active one

• This situation happens only on those retirees who have service years covered by both the old and the new systems.

Issue

• Examples: Grade 7 Senior level 6 served 30 years (old CSRA 17years+ new CSRA 13 years)

• Active: $63,975 NT dollars ($37,915 for basic pay + $21,070 for allowance of specialty + $4,990 for allowance of directing)== 1940 USD

• Retiree:$68,609 NT dollars ($30,125 + $19,716 + $18,768) == 2080 USD

• Ratio: 2080: 1940=107:100

Reformation

• Restrain the ratio: 85%~ 95%• Equation:• Old CSRA + New CSRA + Interest

---------------------------------------------- = 85%~95%

• basic pay + specialty + directing

• Amendment: 2009?or 2010?

My point of views

• Pension fund : going to bankrupt(2026)• Budget: burden

Thank you