Retirement pension system option will expire next June

Since the new labor retirement pension system was put into practice on July 1, 2005, insured workers subject to the old labor retirement pension system have been allowed to switch to the new one within a buffer period of five years, CLA officials said.

In case insured workers covered by the old retirement pension system want to switch to the new pension system, they can settle their seniority payment first based on an agreement with their employers.

Under the new retirement pension system, insured workers can take their retirement pension accounts with them, no matter whether or when they change jobs or have new employers.

By contrast, insured workers adopting the old retirement pension system suffer the risk of having their seniority become zero, if the firms they serve are shut down or if they change jobs or employers on their own.

Under the old system, insured workers are eligible to apply for their retirement pension if they have turned 55 and have worked at the same company for over 15 years; if they have turned 60 and have served at the same company for 10 years; or if they have worked at the same firm for over 25 years.

Some scholars advise people who plan to retire within five years to keep their old retirement pension system, and suggest those who are still young, plan to change jobs, or whose company has suffered financial troubles, to switch to the new pension system.

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