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Chapter IV Payment (Disbursement), Guarantee, and Modification of Pension and Benefit Payments
Section 1 Payment of Pension and Benefit Payments
Article 64
The right to claim for pension and severance pay is the exclusive right of a staff member. No other person may apply for or receive them in place of the staff member, except in the following circumstances:
1. When a staff member who has reached the age of 65 refuses to duly undergo age-mandated retirement, and the employing school takes the initiative to submit the relevant documents to the competent authority for review and approval of the age-mandated retirement.
2. When the employing school submits the relevant documents to the competent authority to carry out compulsory requirement pursuant to Article 22.
3. When a severanced employee fails to duly complete the Facts of Severance Form and to submit the relevant certifying documents for the employing school to forward to the competent authority to review and approve the years of service and the payment for purposes of the severance, and it is necessary for the employing school to carry out these procedures on the staff member's behalf.
4. When the staff member is under a declaration of guardianship or assistance which has not been lifted, and it is necessary for the legal guardian to apply for retirement or severance on the staff member's behalf of the staff member.
5. When the staff member's survivors apply in his or her place for payment in accordance with lump-sum pension payment standards pursuant to Article 26, paragraph 3.
Article 65
In all cases in which a staff member or his or her survivor or survivors apply for pension or benefit payments under this Act, the relevant competent authority for the respective case shall dispose the case by rendering a written administrative disposition.
When the monthly retirement income of a staff member whose retirement becomes effective before this Act comes into force is recalculated pursuant to Article 36, 37, or 39, the competent authority shall dispose the case by rendering a written administrative disposition.
Article 66
All pension and benefit payments set out in this Act shall without exception be made by means of direct remittance into an account by a financial institution, and shall be paid in accordance with the following provisions:
1. A lump-sum pension payment and initial installment of monthly pension, after having been reviewed and approved by the competent authority, shall be paid beginning from the effective date of retirement. However, if a deferred monthly pension is opted for under Article 31, paragraph 3 or Article 32, paragraph 4, subparagraph 2 or 4, it shall be paid beginning from the date the person reaches the statutory starting age for payment. The second and subsequent installments of monthly pension shall be paid once a month according to the uniform operations for such payments.
2. Severance pay, after the years of service and the payment have been reviewed and approved by the competent authority, shall be paid beginning from the effective date of severance.
3. Lump-sum survivor benefit and lump-sum bereavement compensation shall be paid after they have been reviewed and approved by the competent authority.
4. Survivor annuity, after it has been reviewed and approved by the competent authority, shall be paid beginning from the regular payment date for the next monthly pension following the death of the retired staff member. However, in the case of a spouse who has not remarried and who opts for survivor annuity under Article 45, paragraph 2, it shall be paid beginning from the date the spouse reaches the statutory starting age for payment. The second and subsequent installments of a survivor annuity will be paid once a month according to the uniform operations for such payments.
5. The initial installment of monthly bereavement compensation, after having been reviewed and approved by the competent authority, shall be paid beginning from the next month following the death of the staff member. The second and subsequent installments of monthly bereavement compensation will be paid once a month according to the uniform operations for such payments. The same shall apply to additional monthly bereavement compensation payments paid monthly according to the number of minor children among the survivors pursuant to Articles 58 and 59.
The central competent authority shall separately adopt regulations prescribing the operational procedures for verification of the qualifications of recipients, and for the payment, of the pension and benefit payments, and other relevant matters, under the preceding paragraph.
Article 67
The payment amount of the monthly pension received by a staff member after retirement, or of the monthly bereavement compensation or survivor annuity received by survivors, will be adjusted when the cumulative growth rate of the consumer price index published by the central authority for budget, accounting, and statistics reaches plus or minus 5 percent. The adjustment ratio will be decided by the Executive Yuan jointly with the Examination Yuan, taking into consideration the economic environment of the nation, government finances, and the Pension Fund's reserve ratio. Otherwise, the payment amounts shall be reviewed at least once every four years. Provisions relating to the execution of such adjustments shall be set out in the Enforcement Rules to this Act.
If after an adjustment to the monthly pension received by a staff member after retirement or to the monthly bereavement compensation or survivor annuity received by survivors, the adjusted payment amount will exceed the originally received payment amount by 5 percent or greater or will be lower than the originally received payment amount, the adjustment shall require the approval of the Legislative Yuan.
Article 68
For a staff member who has years of service both before and after the implementation of the New Pension System, the pension and benefit payments and preferential deposit interest shall be disbursed in accordance with the following provisions:
1. For pension and benefit payments and preferential deposit interest receivable for years of service in employment before the implementation of the New Pension System, the competent authority shall prepare a budget for the disbursement thereof.
2. Pension and benefit payments receivable for years of service in employment after the implementation of the New Pension System shall be paid out of the Pension Fund.
3. For pension to be additionally paid pursuant to Article 33, paragraph 2 the competent authority shall prepare a budget for the disbursement thereof.
4. For lump-sum salary-and-allowance relief payment additionally paid under Article 41, the competent authority of the employing school shall prepare a budget for the disbursement thereof.
5. For the payments set out in the items listed below, the competent authorities at each level shall prepare a budget for the disbursement thereof:
(1)Additional lump-sum bereavement compensation awarded under Article 54, paragraph 2, subparagraph 1, item 2; additional bereavement compensation for death from an occupational cause awarded under Article 55, paragraph 3 and Article 57.
(2)Additional bereavement compensation awarded under Articles 58 and 59.
(3)Funeral and burial subsidy and meritorious service bereavement compensation awarded under Article 61.
Article 69
The right of a staff member or his or her survivors to claim pension and benefit payments may not be assigned, offset, attached, or provided as security. However, this restriction shall not apply in the case of distribution of a share of a staff member's pension under Article 83.
A recipient of pension or benefit payments may open a personal account at a financial institution to be used exclusively for the deposit of pension or benefit payments.
Funds deposited in a personal account referred to in the preceding paragraph may not be offset, attached, provided as security, or be an object of compulsory execution.
If a recipient of pension or benefit payments has received any payment from a false claim or has received any excess amount, the paying or disbursing agency shall verify and recover the falsely claimed or excess amount received, and shall not be be subject to the restrictions of paragraph 1 and the preceding paragraph.
Article 70
If the right of a staff member or any of his or her survivors to claim pension or benefit payments shall be suspended, terminated, or lost because of the occurrence of a statutory cause or because of the voidance or revocation of an administrative disposition, or if any thereof receive an excess amount of, or receive in error, any pension or benefit payment because of an erroneous payment by an agency or institution, the paying or disbursing agency shall issue a written administrative disposition ordering the party to return, within a certain deadline, the amount received in excess or errroneously from the date the right of claim should have been suspended, terminated, or lost. If the party does not return the amount by that deadline, it shall be subject to compulsory execution in accordance with the applicable provisions of the Compulsory Execution Act.
If an amount received in excess or erroneously by a person under the preceding paragraph is a regular payment, the paying or disbursing agency may notify the party that it will be recovered from the next and subsequent regular payments of the pension or benefit. If the party objects and has not yet returned the amount by another means, the paying or disbursing agency shall take the measures set out in the preceding paragraph.
In the case of a person who has received disbursement of a lump-sum pension payment or a Civil Servant and School Staff Insurance lump-sum old-age payment and has taken out a preferential-interest savings deposit, in the event that the pension or benefit payments claimed by the person are subject to suspension, termination, loss of entitlement, or lawful voidance or revocation, the preferential-interest savings deposit shall be terminated, and and shall be restored only when the cause has ceased to exist. If such deposit it is not duly terminated, the paying or disbursing agency shall take the recovery measures set out in paragraph 1.
If any person referred to in the preceding three paragraphs fails to return the returnable amount within the deadline and the responsibility for the failure is attributable to that party, the paying or disbursing agency shall charge interest at an annual interest rate of 2 percent, and shall take the recovery measures set out in paragraph 1.
When any party referred to in the preceding 4 paragraphs fails to meet the deadline to return the pension or benefit payments or preferential deposit interest received in excess or erroneously, or fails to return the full amount of the pension or benefit payments or preferential deposit interest received in excess or erroneously, if, before the paying or disbursing agency has recovered the excess or erroneous amount through compulsory execution under the Administrative Execution Act, the party once again retires, is severanced, or claims a lump-sum survivor benefit, survivor annuity, or bereavement compensation, the disbursing agency may verify and offset or recover that excess or erroneous amount from any pension or benefit payment approved and issued for that re-retirement, severance, or claim. The same shall apply to cases dating from before this Act has come into force.
Article 71
If the whereabouts of a retired staff member receiving a monthly or partial monthly pension or a survivor receiving monthly bereavement compensation or survivor annuity are unkown or the disbursing agency is unable to contact the person, payment of the pension, bereavement compensation, survivor annuity shall be suspended, and the institution hosting the preferential-interest savings deposit shall be notified to simultaneously suspend payment of the preferential deposit interest. The payment will subsequently be made up in accordance with regulations only after the retired staff member or survivor has personally made an application.
Article 72
If a retired staff member receiving a monthly or partial monthly pension or a survivor receiving monthly bereavement compensation or survivor annuity resides in the Mainland Area long-term, without obtaining household registration in the Mainland Area or holding a Mainland Area passport, the disbursing agency shall, during the period of his or her residence in the Mainland Area, suspend the payment of the pension, bereavement compensation, or survivor annuity. The payment will subsequently be made up in accordance with regulations only after the staff member has personally duly applied to instead receive a lump-sum pension payment or has returned to reside in Taiwan.
Article 73
The rights of a staff member or his or her survivors such as to claim pension and benefit payments and preferential deposit interest shall be exercised within the effective period for rights of claim under public law as set out in the Administrative Procedure Act.
If after a staff member resigns, the staff member subseqeuently serves in employment at a public or private entity or private school, and claims pension under the Labor Standards Act, the Labor Pension Act, the Private School Retirement and Compensation Act, or any regulation thereunder, the person may exercise the right under Article 10 to claim for return of the principal, with interest, of the Pension Fund premium originally contributed by the person himself or herself, by applying, no later than within 6 months from the date of reaching age 65, to the Pension Fund management institution for its return and the time limitation of the preceding paragraph shall not apply.
Article 74
Monthly consolation payments, or annual consolation payments to survivors of deceased staff members, that were already reviewed and approved before his Act comes into force, shall continue to be handled on the basis of the payment standards set out in the provisions that were originally applicable before the promulgation and enforcement of this Act.
Section 2 Amendment and Guarantee of Pension and Benefit Payments
Article 75
If any of the following circumstances applies to a staff member or his or her survivor, he or she shall lose the right to claim pension and benefit payments:
1. Is deprived of civil rights for life.
2. Is convicted by a final and conlusive judgment of an offense against the internal or external security of the State after the end of the Period of National Mobilization in Suppression of Communist Rebellion.
3. Loses, or does not have, ROC citizenship.
4. Is sentenced to a criminal penalty by a final and conclusive judgment for having intentionally, for the purpose of receiving a lump-sum survivor benefit, survivor annuity, or bereavement compensation, caused the death of the retired staff member, actively serving staff member, or another survivor entitled to receive such a benefit.
5. As otherwise set out in a special provision of another law.
If any of the following circumstances applies to a staff member receiving a monthly or partial monthly pension, or to a survivor receiving monthly bereavement compensation or survivor annuity, the person shall lose the right to continue to rceive monthly pension, monthly bereavement compensation, or survivor annuity:
1. Dies.
2. Is deprived of civil rights for life.
3. Is convicted by a final and conlusive judgment of an offense against the internal or external security of the State after the end of the Period of National Mobilization in Suppression of Communist Rebellion After the end of the Period of National Mobilization in Suppression of Communist Rebellion.
4. Loses ROC citizenship.
If a staff member who has already duly paid Pension Fund premium loses the right to receive pension or benefit payments under one of the two preceding paragraphs, an application may still be made under Article 10, paragraph 2 for return of the principal, with interest, of the Pension Fund premium contributed by the staff member himself or herself. However, for a person under the preceding paragraph, the amount that may be returned is limited to the difference between the amount of the principal, with interest, of the Pension Fund premium contributed by the staff member himself or herself who retired or died during active service and the amount that has already been received in monthly pension, monthly bereavement compensation, or survivor annuity. If there is no difference, no amount shall be returned.
Article 76
If any of the following circumstances applies to a retired staff member who has been approved for and receives a monthly or partial monthly pension, the person's right to receive the monthly pension shall be suspended, and shall be restored when the cause ceases to exist:
1. During a period when the person receives a regular courtesy payment for former service as President or Vice President.
2. During a period of imprisonment under a sentence imposed by a final and conclusive judgment for commission of an offense under the Anti-Corruption Act or under the Offenses of Malfeasance in Office chapter of the Criminal Code.
3. During a period when the person is deprived of civil rights, and the rights have not yet been reinstated.
4. During a period when the person is subject to a warrant for arrest.
5. As otherwise set out in a special provision of another law.
If any of the circumstances in the subparagraphs of the preceding paragraph applies to a survivor who receives monthly bereavement compensation or survivor annuity, the right to receive the bereavement compensation or survivor annuity shall be suspended, and shall be restored when the cause ceases to exist.
Article 77
In the case of a retired staff member who has been approved for and receives a monthly or partial monthly pension and who is reemployed in a paid position, if any of the following circumstances applies, the person's right to receive the monthly pension shall be suspended, and shall be restored when the cause ceases to exist:
1. Is reemployed in a position with an agency, institution, school, or group with salary, wages, or public expenses(hereinafter, "remuneration")disbursed out of a government budget, and the total amount of the remuneration received monthly exceeds the statutory basic wage.
2. Is reemployed in any of the following positions, and the total amount of remuneration received monthly exceeds the statutory basic wage:
(1)Position in an administrative juristic person or public juristic person.
(2)Position in a foundation of which the funding originally or contributed or donated or subsequently contributed or donated by the government cumulatively reaches 20 percent or more of the total assets of the foundation.
(3)Position in an enterprise in which the government or an enterprise fund or nonprofit fund of the government has made equity investment, and the cumulative amount of such equity investment reaches 20 percent or more of the total capital of the enterprise.
(4)Position in one of the following groups or institutions of which the government directly or indirectly controls the personnel, finances, or business:
i. A foundation or a group or institution belonging to the foundation.
ii. An enterprise or a group or institution belonging to the enterprise.
If the paying or disbursing agency of a retired staff member's monthly pension discovers that the retired staff member has been re-enrolled in insurance through an agency, institution, school, group, or juristic person under the preceding paragraph, it may preliminarily suspend payment of the retired staff member's monthly pension. After the retired staff member has applied for reinstatement and submitted relevant proof that the total monthly remuneration he or she receives does not exceed the statutory basic wage, the agency shall then reinstate payment and make up the payment of the monthly pension from the period of the suspension.
If a retired staff member who has been reviewed and approved by the competent authority to receive a monthly or partial monthly pension and then is reemployed in a position as a chairman or chief executive officer of any institution listed in paragraph 1, subparagraph 2, the age at which he or she first takes up that position may not exceed 65.
If a person under the preceding paragraph reaches age 70 before the end of his or her term of office, he or she shall immediately be replaced. This restriction shall not apply, however, in a case in which there are special considerations and the approval of the superior Yuan [i.e. the highest body of the relevant branch of government] has been obtained.
Article 78
If a staff member, after retiring, is reemployed in any of the following positions, the monthly remuneration received by the person may exceed the statutory basic wage, and shall not be subject to the provisions of the preceding article regarding suspension of the right to receive monthly pension:
1. Is employed or hired to carry out emergency or disaster response or relief work for the government because of the occurrence of an emergency or disaster.
2. Is employed or hired to serve in a public medical agency or institution in a mountain region, outlying island, or other remote area, to engage in primary medical and health care duties.
Article 79
If a staff member, during a period of active service, commits an offense under the Anti-Corruption Act or under the Offenses of Malfeasance in Office chapter of the Criminal Code, or takes advantage of his or her authority, opportunity, or means afforded by his or her position to commit another offense, and is subsequently convicted and sentenced by a final and conclusive judgement, after already having retired, been severanced, or resigned, the person shall be deprived of, or have reduced, any related pension, severance, or separation payments, as set out in the provisions listed below; if the payment has already been made, recovery shall be pursued of the full or partial amount that should be subject to the deprivation or reduction:
1. If finally and conclusively sentenced to the death penalty, life imprisonment, or imprisonment for 7 years or longer, he or she shall be deprived ab initio of the pension, severance, or separation payments.
2. If sentenced to imprisonment for 3 years or longer but less than 7 years, his or her receivable pension, severance, or separation payments shall be reduced ab initio by 50 percent.
3. If sentenced to imprisonment for 2 years or longer but less than 3 years, his or her receivable pension, severance, or separation payments shall be reduced ab initio by 30 percent.
4. If sentenced to imprisonment for 1 year or longer but less than 2 years, his or her receivable pension, severance, or separation payments shall be reduced ab initio by 20 percent.
If a suspended sentence is pronounced for a person under the preceding paragraph, and the suspension of sentence has not been voided at the end of the period of the suspended sentence, then from the time of the end of the period of the suspended sentence, the provisions of subparagraphs 3 and 4 of the preceding paragraph shall not apply, and the amount of any reduction that has already been made in the relevant pension, severance, or separation payments shall be made up to the person by the respective disbursing agencies.
The relevant pension, severance, or separation payments of which a person shall be deprived or which shall be reduced, as referred to in paragraph 1, shall be limited to those which are approved and given for the years of service in employment preceding his or her most recent retirement, severance, or resignation; they comprise the following types of payments:
1. Pension or severance pay disbursed pursuant to this Act.
2. Compensation payment under the Regulations Governing the Payment of Pension, Other Cash Payments, and Compensation Payment to Government Employees and Public School Teachers.
3. Pension Fund premium principal contributed by the government, and interest thereupon.
4. Preferential deposit interest.
5. Survivors' lump-sum survivor benefits or survivor annuity.
If with respect to the same case involving the person under paragraph 1, another law imposes a more severe disposition for the deprivation or reduction of pension, severance, or separation payments, the person shall be penalized by the more severe disposition.
If a retired staff member, after retiring or being severanced under this Act, is subsequently reemployed as a staff member, for any past years of service in employment for which he or she previously has been deprived of, or has been subject to reduction of, pension, severance, or separation payments pursuant to paragraph 1, when the person once again retires, is severanced, or resigns, or dies during the period of reemployment, no further pension or benefit payments shall be awarded, and furthermore those years of service shall be calculated in aggregate with the years of service after the reemployment and the provisions of Article 16 shall be complied with.
Article 80
If a staff member, during a period of active service, is involved in a case of sexual assault on compus, and is subsequently convicted and sentenced by a final and conclusive judgement to a sentence of imprisonment or greater severity, after already having retired, been severanced, or resigned, the person shall be deprived ab inito of any related pension, severance, or separation payments; if the payment has already been made, its recovery shall be pursued:
Article 81
If a staff member is subject to a demotion or a salary-reducing disciplinary sanction after already having retired or been severanced pursuant to this Act, the basis for calculation of his or her pension or severance pay shall be changed to the salary grade or salary amount subsequent to the demotion or salary reduction; the date for implementation of the change shall be as follows:
1. If the written disciplinary sanction decision is delivered to the competent authority with jurisdiction over the sanctioned person after the retirement or severance, it shall be enforced from the day after the delivery of the written decision to the competent authority.
2. If the written disciplinary sanction decision is delivered to the competent authority with jurisdiction over the sanctioned person before the retirement or severance, but is not yet enforced, it shall be enforced from the enforcement date for the disciplinary sanction decision.
Article 82
If a staff member who applies for pension or severance, or a survivor who claims a bereavement payment, lump-sum survivor benefit, or survivor annuity, under this Act, disagrees with the outcome of the competent authority's decision upon its review of the application or claim, the staff member or survivor may, according to his or her status, respectively seek remedy under the Teachers Act, the Administrative Appeal Act, or the provisions, applicable mutatis mutandis, of the Civil Service Protection Act. If there is a cause for reopening of the administrative procedure, such as an obvious error, the occurrence of a new fact, or discovery of new evidence, the person may take measures under the applicable provisions of the Administrative Procedure Act.
Section 3 Distribution of Pension and Benefit Payments
Article 83
If the duration of the marriage relationship between a divorcing spouse of a staff member and the staff member was 2 full years or longer, when the statutory property regime or community property regime relationship is extinguished because of the divorce, the divorced spouse may claim for distribution of a share of the pension received by that staff member under this Act in accordance with the following provisions:
1. The share of the pension which the divorced spouse may claim shall be calculated as one-half of the proportion of the period of the staff member's approved years of service at retirement accounted for by the period during which the statutory property regime or community property regime existed between the divorced spouse and that staff member.
2. The standard amount of pension against which the divorced spouse may claim for a share under the preceding subparagraph shall be the receivable lump-sum pension payment calculated based on the staff member's approved years of service at retirement.
3. The period during which the statutory property regime or community property regime existed shall be calculated in months; a period of less than a month shall be calculated as one month.
4. If the one-half share set out in subparagraph 1 of this paragraph is obviously unfair, either party may make a motion to the court for an adjustment to the amount of, or for exemption from, the distribution thereof.
If the divorced spouse under the preceding paragraph enjoys entitlement under any other law to a pension from during the existence of the marriage relationship, the divorced spouse's right to claim for a share hereunder may be exercised only to the extent that the staff member enjoys an equal right to claim for a share of the pension of the divorced spouse under that other law.
The right of claim under paragraph 1 may not be assigned or inherited.
The right of claim of a divorced spouse of a staff member under paragraph 1 shall be extinguished by prescription if not exercised within 2 years from the time that the divorced spouse knows that he or she has that right. It also shall be extinguished by prescription if not exercised within 5 years from the time that the statutory property regime or community property regime relationship is extinguished.
The provisions of this article do not apply to pension received under this Act by a staff member who undergoes compulsory retirement or who retires before the promulgation and enforcement of this Act.
The provisions of this article do not apply in the case of those who are already divorced before the promulgation and enforcement of this Act.
Article 84
When a divorced spouse of a staff member claims for distribution of a share of the staff member's pension pursuant to the preceding article, the method for payment of the share shall be as agreed upon between the parties. If the parties are unable or unwilling to reach agreement, they may notify the agency responsible for reviewing and approving pensions and request that when it reviews and determines that staff member's pension, that it also review and determine the total amount of the share of pension that should be distributed under the preceding article, which shall then be paid in one lump sum by the paying agency.
When a share of a staff member's pension is distributable pursuant to the preceding article, deduction shall be carried out pro-rata to that share in accordance with the following provisions:
1. If the staff member receives a lump-sum pension payment, the share shall be deducted from the lump-sum pension payment received by the staff member.
2. If the staff member receives a monthly pension, a deduction shall be made on a monthly basis pro-rata to the share, until such time as the total amount of the distributable share of the pension has been deducted, at which point no further deduction shall be made.
3. If the staff member receives a partial monthly pension, the distributable share shall first be deducted from the partial lump-sum pension payment, if that amount is insufficient for the full amount to be deducted, the remainder shall then be deducted from the partial monthly pension on a monthly basis in accordance as provided in the preceding subparagraph, until such time as the total amount of the distributable share of the pension has been deducted, at which point no further deduction shall be made.
If a staff member who retires after the promulgation and enforcement of this Act divorces during a period in which he or she receives a monthly or partial monthly pension, when a share of his or her pension is distributed under the preceding article, the provisions of the preceding two paragraphs shall apply.
The method under this Act for deductions from pensions, and for notification and request of the agency responsible for reviewing and approving pensions to determine the distributable share, and other relevant matters shall be set out in the Enforcement Rules to this Act.
Article 85
If any of the circumstances in Article 75, paragraph 1 applies to the divorced spouse of a staff member, the divorced spouse shall lose the right to distribution of a share of that staff member's pension under Article 83.