When a newly employed staff member commences duties, the management authority shall set up an individual account for that staff member and deposit the joint monthly contributions paid by the staff member and the government and any voluntary additional contributions paid by the staff member during the period of their employment, into their individual account. The principal, and interest or dividends earned, will accrue as a savings reserve from which retirement and benefit payments will be made to the staff member at the time of their retirement, or severance in accordance with law, or to their survivors as bereavement compensation.

The joint monthly retirement and compensation funds contributions paid in accordance with the provisions of the preceding article shall be levied at the rate of 15 percent of twice the staff member's base salary（based on seniority）, of which, the government contributes 65 percent on a monthly basis and the staff member contributes 35 percent, jointly deposited into the individual account.
Apart from the monthly contribution an individual must make referred to in the preceding paragraph, a staff member may voluntarily make additional contributions to their individual account, up to a maximum of 5.25 percent of twice the staff member's base salary（based on seniority）.
The retirement and compensation funds contributions made by a staff member in accordance with the provisions of this Act are not included in their annual taxable income.
Unless other provisions of this Act apply, the payment of the retirement and compensation funds contributions shall be halted in any of the following circumstances:
1. The staff member is on unpaid leave.
2. The staff memer has been provisionally removed from employment or is on administrative suspension.
3. The staff member is on disciplinary suspension without pay for at least six months.
If any excess government retirement and compensation funds contributions are paid into an individual account, the management authority shall verify that this has occurred and recover the principal excess contribution, and any interest or dividends earned, and return those funds to the agency that made the excess contribution. The verified amount to be recovered may be deducted from the cumulative total amount in the individual account. If it is not possible to deduct and recover the excess contribution or if the amount in the account is insufficient to do so, the management authority shall issue a written order for the party to repay the outstanding amount within a prescribed period; if it is not repaid within the prescribed period, the matter shall be referred for administrative enforcement in accordance with the law.

If a staff member arranges unpaid leave in accordance with ordinances and is seconded to serve at another educational institution where they fill an employment vacancy and receive a salary in accordance with ordinances, then during the period that they are on unpaid leave, the retirement and compensation funds contribution matters shall be handled by the educational institutionto which the staff member has been seconded, in accordance with the person's salary grade and the provisions of Paragraph 1 of the preceding article.
The person referred to in the preceding paragraph may voluntarily make additional contributions to the individual account in accordance with the provisions of Paragraph 2 of the preceding article, during the unpaid leave period.
During a period in which a staff member takes unpaid leave in accordance with ordinances for childcare purposes, the staff member may choose to bear the full contribution payment burden and continue to pay all the retirement and compensation funds contributions in accordance with the provisions of Paragraph 1 and Paragraph 2 of the preceding article. Payment of the required associated retirement and compensation funds contributions may be deferred for three years.

The management authority may commission a financial institution or professional institution to handle, fully or in part, the revenue and expenditure, management, and utilization of staff members’ retirement and compensation funds, and their individual accounts. Regulations governing that revenue and expenditure, management, and utilization, the allocation of any surplus or deficit, the scope of and fees for the commission, and other related matters shall be drafted by the management authority and submitted to the central competent authority for review and approval.
Staff member retirement and compensation funds are not permitted to be attached, assigned, offset, provided as security, or used for any other purpose, except to make staff member retirement and benefit payments and for investments.
The management authority shall design investment portfolios with different returns and risks for staff members to select from or it shall commission a financial institution or professional institution to do so. If a staff member does not select a portfolio, the management authority shall allocate the contributions for that staff member to an appropriate portfolio based on the staff member’s age. The associated implementation regulations shall be drafted by the management authority and submitted to the central competent authority for approval.
Before the selection of an investment portfolio referred to in the preceding paragraph is implemented, the cumulative total amounts in the individual accounts shall be uniformly managed and utilized by the management authority.
The return on the retirement and compensation funds during the period of their uniform management and utilization referred to in the previous paragraph, and the return on an investment portfolio that the Fund Management Committee has rated as having the lowest level of risk after the selection of investment portfolios is implemented are both not permitted to be lower than the 2-year term deposit rate of local banks. If any shortfall occurs, it shall be made up in full by the National Treasury.

A staff member who does not meet the eligibility criteria for retirement or severance who leaves employment may apply for the retirement and compensation funds in their individual account to be returned to them in a single lump sum.
A staff member with less than five years of service in employment who leaves employment may apply to postpone collecting their retirement and compensation funds, in which case the management authority will pay the retirement and compensation funds that they have not yet collected in one lump sum, no later than the date that the person turns 60.
If the person referred to in the preceding paragraph dies without having collected their retirement and compensation funds, their survivors may apply to the management authority for the funds to be paid to them in one lump sum. The scope, order of entitlement, and proportional entitlements of the survivors shall be handled in accordance with the provisions of Article 34.

Any years of service during which a principal or president or a teacher was formerly employed as a paid, full-time, qualified principal, president, or teacher within the staff complement of a private educational institution, for which no retirement, severance, or separation payment has yet been approved and paid, and for which written verification has been provided by that former employing institution, may be included in the person's years of service, and their retirement, severance pay, or related bereavement compensation shall be calculated and paid in accordance with the following provisions:
1. For years of service at a private educational institution before and including 31 December 2009, the content of the base unit, and maximum countable base units, for the person's retirement or severance pay, or for bereavement compensation shall be handled in accordance with the provisions governing the retirement, severance pay, and bereavement compensation of staff members of private educational institutions that were in force before the Act Governing the Retirement, Bereavement Compensation, and Discharge with Severance Pay Benefits for the Teaching and Other Staff of School Legal Persons and their Respective Private School（s）（hereunder referred to as the "Private School Retirement and Compensation Act"）came into effect, and the payments shall be made by the Management Committee Managing Retirement, Compensation, Resignation, and Severance Fund Matters for Private School Teachers and Staff of the ROC（hereunder referred to as the "Fund Management Committee"）out of the original Retirement, Bereavement Compensation, Resignation, and Severance Fund for Private School Teaching and Other Staff Members.
2. For years of service at a private educational institution on from 1 January 2010 onwards, in accordance with the provisions of the Private School Retirement and Compensation Act, the Fund Management Committee shall pay the accumulated principal, and any interest or dividends earned into the person's individual Retirement and Compensation Fund Account, out of the Private School Retirement, Compensation, Resignation, and Severance Fund.