The Act is enacted to protect workers' livelihood after retirement, strengthen the relations between workers and employers, and promote social and economic development.
The Act takes precedent over other statutes with respect to labor pensions. Matters that are not addressed herein shall be governed by other statutes.

The term "competent authority" referred to in the Act shall be the Ministry of Labor at the central level, the municipal government at the municipal level, and county (city) government at the county (city) level.

The terms "worker", "employer", "business entity", "labor contract", "wage" and "average wage" referred to in the Act shall be defined in accordance with Article 2 of the Labor Standards Act.

The central competent authority shall, in order to supervise the management and operation of the labor retirement fund as stipulated in the Act and Article 56, Paragraph 3 of the Labor Standards Act, employ government representatives, labor representatives, employer representatives and experts and scholars to form a Labor Fund Supervisory Committee (hereinafter referred to as the Supervisory Committee).
The matters, procedures, personnel composition, term of office and employment and other related matters overseen by the Supervisory Committee mentioned in the preceding paragraph shall be determined by the central competent authority.

The central competent authority shall entrust the Bureau of Labor Insurance, Ministry of Labor（hereinafter "the Bureau"）to take charge of the revenues, and expenditures and to be responsible for safeguarding labor pension funds, as well as the imposition of late payment charges.

Employers shall on a monthly basis contribute labor pension funds to individual labor pension accounts at the Bureau for employees covered by the Act.
Unless otherwise provided for in the Act, an employer shall not create his/her own labor pension mechanism to replace the labor pension system prescribed in the preceding paragraph.