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Taiwan is currently faced with the prospects of has been founded. Currently, the seniority
decreasing childbirth, population aging, and pay rate of labor insurance pension is 1.55%.
reducing household living resources; therefore, Take an insured person who has 30 insurance
how to enhance elderly economic security coverage years for example : he/she will be
for laborers has become an important issue. eligible for an income replacement rate as high
The elderly economic security model includes as 46.5% upon retirement. Plus the income
three levels. The first level is the basic public substitution rate provided by the second level
pension, like the national pension and labor of labor pension, the total income replacement

insurance pension programs, which belong rate has already exceeded the standard of
to the social security system mandatorily 55% recommended by the International Labor
implemented by the country. The second level Organization (ILO).
is the corporate pension, which is the pension
given by employers to their employees, such Establishment of the Labor
as the old and new labor pension programs. Pension Program
Both the corporate and public pension
programs have the effects of saving and risk The Labor Pension Act (new program),
sharing. The third level is the commercial which was implemented on July 1, 2005, is
pension, which is the annuity insurance paid by supported by two pillars of “individual labor
individuals from private insurance companies. pension accounts” and “annuity insurance”.
It primarily enables individuals to save for their All employers are required to contribute labor
retirement to make up for the inadequacies of pension (at least 6% of workers' monthly
social insurance and corporate pension. After wages) into individual labor pension accounts
the new labor pension, national pension, and and workers can voluntarily deposit 6% (or

labor insurance pension programs continued less). Workers own labor pension accounts; the
to be implemented, the framework of basic coverage years and pension are cumulative,
economic security for laborers' elderly lives not affected by their changing jobs or the

Private commercial pension
personal savings

Corporate retirement pension：labor pension program
(The new labor pension program was implemented on
July 1, 2005)

Public pensions：national pension, labor insurance
pension

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