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The Origins of the Public Service Pension Fund

The public service pension system of the Republic of China was established in 1943. Since then, the framework and principles that define it as a government-financed superannuation system remained unchanged for a long time. However, dramatic changes in politics, economics, and social environment have posed great challenges to the system. One of these challenges 
was the growing financial burden of the government. This prompted the government to organize a task force in 1973 to review the system. After years of study, the public service pension system was changed on 1 July 1995 from a totally government-financed system to a “Contributory Public Service Pension Fund” that is supported by funds jointly contributed by the government and the participants. Upon the adoption of the new system, the Public Service Pension Fund (PSPF) began paying pension benefits based on years of service. Under the direction of the Examination Yuan, the Public Service Pension Fund Supervisory Board (PSPFSB) and the Public Service Pension Fund Management Board (PSPFMB) were set up to oversee the supervision and management, respectively, of the Fund. Pursuant to the laws currently in effect, Fund participants comprise civil servants, education workers, and military personnel (political appointees withdrew from the Public Service Pension Fund by law from 2004), totaling more than 630,000 persons.