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About the old labor pension scheme

I. Retirement requirements


There are two ways of labor retirement: "voluntary retirement" and "mandatory
retirement". The difference is that the labor has the right to initiate a "voluntary
retirement" while the employer has the right to initiate "mandatory
retirement". It is allowed to follow the labor pension standards provided by the
employer when it is superior to the provisions.
 (1) Voluntary retirement (Article 53, Labor Standards Act)
        The labor who works for the same company and meets one of the
        following circumstances may request voluntary retirement:
        1. 15 years seniority and over 55 years old.
        2. 25 years seniority.
        3. 10 years seniority and over 60 years old.
       The labor who meets the requirements of voluntary retirement has the
       right to request retirement anytime. Even if the employer has noticed the
       labor of the termination of contract in advance according to Article 11 of
       the Labor Standards Act, for those who meet retirement requirements the
       employer shall approve retirement and pay the retirement pension
       according to Article 55 of the same law, and shall not process it as a
       severance.
  (2) Mandatory retirement (Article 54, Labor Standards Act)
       Unless the labor meets one of the following circumstances, the employer
       shall not force his/her retirement:
       1. Over 65 years old.
       2. Mentally deranged or physically disabled and incapable of working.
      For the under‐55‐year‐old labor undertakes works of danger, substantial
      physical strength and other special content, the company may report to
      the central competent authority for adjustment according to the 2.
      Regulation of Article 54, Labor Standards Act. When the labor meets both
      the mandatory retirement requirement and one of the circumstances of
      labor contract termination in Article 11 of Labor Standards Act, the
      employer shall handle it as a retirement legally instead of a severance
      case.


II. Pension Payment Standards
 

The pension payment standards of The Labor Standards Act is provided in the
Article 55, calculation provides as follows:


(1) According to the years of service a payment of two units for each year of
     service, provided, however, that it shall be one unit per year after the
     completion of the fifteenth year, and that the total units shall not exceed
     45. Any fraction of a year which is less than 6 months shall be counted half
     a year and any fraction of a year which is equal to or more than six months
     shall be counted as one year of service.
(2) An additional 20 percent of the retirement payments shall be made to the
     worker who retires mandatorily that the mental defect or physical
     handicap is caused by an occupational accident.


     1. The standard for "unit" follows the paragraph 4 of Article 2 in Labor
     Standards Act, calculated as "average monthly wage when the retirement
     is approved", namely, the average wage means the sum arrived at by
     taking the total amount of wages for the six months preceding the day on
     which a matter of computation occurs divided by the total number of days
     of that period.


     2. A ”worker seniority” is calculated from the first day of his/her
     employment, is defined as the years of service for one and the same
     business entity; the previous and current seniority may be combined for
     calculation purposes according to the Labor Standards Act. The standards
     of severance pays and retirement benefits for the seniority accumulated
     before and after the application of the Act shall be calculated in proration,
     in accordance with the applicable laws and administrative regulations
     effective during that time. Those with no applicable regulations shall
     follow the retirement rules provided by the company or decided by the
     labor and employer in consultation. Once applicable, they shall be
     calculated according to the payment standards provided by Labor
     Standards Act (2, Article 84, Labor Standards Act).

Update:2014-11-20