Under the establishment of the Ministry of Labor, the authorities of various labor funds are distinctively separated into three major practices of collection/payment, utilization and supervision. The Bureau of Labor Funds is responsible for overall planning and utilization of various labor funds, including the Labor Pension Fund, the Labor Retirement Fund,the Labor Insurance Fund, the Employment Insurance Fund, the Overdue Wages Payment Fund and the Occupation Incidents Protection Fund. The aggregate fund assets located at the 28th in comparison with the world's top 300 ranking of the year 2015. The Bureau of Labor Funds is meant to integrate the research, audition and management of the Labor Pension Fund and the Labor Insurance Fund so as to build a stronger investment team. The team will endeavor to construct optimal asset allocation and risk control mechanism, to diversify investment portfolios in global niche markets and to enhance the management efficiency in an effort to insure the profitability, security and liquidity of the Funds and to seek the utmost benefit for the labor.
Under the Ministry of Labor, the Labor Funds comprise the Labor Pension Fund (the New Fund), the Labor Retirement Fund (the Old Fund), the Labor Insurance Fund (LIF), the Employment Insurance Fund (EIF), the Arrear Wage Payment Fund (AWPF), and the Occupation Incidents Protection Fund (OIPF).
The efficiency of Labor Fund investment has a bearing on the interests of the workforce. In order to ensure the funds are managed professionally and to clarify responsibilities, a dedicated agency was set up in accordance with the Organization Act for the Bureau of Labor Funds of the Ministry of Labor and charged with overseeing the management of various Labor Funds. The management of one of these funds, the “the Old Fund” Labor Retirement Fund, was passed on to the Bank of Taiwan, which utilizes the fund in its in-house investment operations. The Bureau of Labor Funds has also been commissioned by the Ministry of Health and Welfare to manage the National Pension Insurance Fund (NPIF).
The Bureau devises investment plans for each fund according to its properties, regulations, and size, and has established the organization and operation mechanism required to manage the funds with security, transparency, efficiency, and steadiness. By pushing for the diversification of investments and professional management, the Bureau hopes to secure long-term steady returns that will benefit the labor force both before and after retirement.