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. 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 Management Board (PSPFMB) were set up and in charge of the matters relating to contributions, payments and management 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), education workers and military personnel began taking part in the Fund in February 1996 and January 1997 respectively.
As the fund participants, fund size and pension recipients increase and be in line with the establishment of new pension system (“portable” pension system) in July 2023, Public Service Pension Fund Management Board is restructured and change its name to “Bureau of Public Service Pension Fund” being effective on 30th April 2023 to boost the efficiency of the fund and to cope with the ever-changing financial situation. Bureau of Public Service Pension Fund is responsible for the matters relating to contributions, payments and management of the existing and the new pension system simultaneously.
The Objectives of the Public Service Pension Fund
1. To guarantee retirees get pension income and take special care of all retirees and their dependents.
The aim is to secure and steady the income for the retirees so as to facilitate the recruitment of human forces for public service, boost its morale, take care of the aged and their dependents, and establish a sound and solid retirement system.
2. To ensure the financial sources by collecting the contributions to the Public Service Pension Fund according to law.
To ensure a stable source of the Fund’s contributions, the government has enacted laws under which the Public Service Pension Fund is jointly contributed by the government and the public servants. With respect to the management of the Public Service Pension Fund, equal importance is placed on its security and profitability so that the financial structure of the system can be solid and the system can be carried on forever.
3. To take good care of retirees, and pay attention to the welfare of the on-service participants.
Based on the principle of taking from the public servants and giving to the public servants, efforts will be made to take care of the retirees as well as to pay equal attention to the welfare of the incumbent public servants. In this way, the Public Service Pension Fund will help strengthen the vitality of government organizations and improve the development and utilization of human resources.