Retirement of staff members is divided into the categories of voluntary retirement, age-mandated retirement, and compulsory retirement.

In any of the following circumstances, voluntary retirement by a staff member shall be approved:
1. Has been employed for 5 years, and is aged 60 or over.
2. Has been employed for 25 years.
In any of the following circumstances, voluntary retirement shall be approved for a staff member who has been employed for 15 years:
1. The staff member is issued a certificate by a hospital assessed as qualified by the central competent health authority（hereinafter, "qualified hospital"）stating that he or she meets the standard of "semi-incapacitated" or a more severe disability under the Civil Servant and School Staff Insurance Disability Benefit Standards, or is assessed to have a mental or physical disability ranking of "severe" or greater under the ranking system set by the central competent health authority.
2. Suffers from a terminal-stage malignant tumor or is a terminal illness patient as defined in Article 3, subparagraph 2 of the Hospice Palliative Care Act, and submits a certificate issued by a qualified hospital.
3. Holds a certificate issued by an authorized agency certifying a permanent serious illness or injury under the National Health Insurance system, and has been determined by the employing school to be incapable of performing the duties of his or her work, and also incapable of performing other equivalent work.
4. Qualifies as having a statutory physical or mental disability, and has been issued a certificate of permanent incapacity for work issued through the mechanism for specialist evaluation of individual work capacity under Article 54-1 of the Labor Insurance Act.
The age limit of "aged 60 or over" in paragraph 1, subparagraph 1 may be reduced by the central competent authority at its discretion with respect to work duties that have restrictive physical requirements, but may not be lower than 55 years.
The age limit of "aged 60 or over" for voluntary retirement in paragraph 1, subparagraph 1 is lowered to "aged 55" for people who have identity status as indigenous peoples. However, after the enforcement of this Act, in tandem with decreases in the gap between the average life expectancy of indigenous peoples and the national average life expectancy, the voluntary retirement age for indigenous peoples will gradually be raised until it reaches 60, and shall be examined for this purpose once every 5 years by the central competent authority and reported to the Executive Yuan for approval.
The determination of identity of indigenous peoples under the preceding paragraph will be based on the household registration data of the individual.

When the employing school duly carries out staff downsizing because of the school's closure, merger, or restructuring, voluntary retirement shall be approved for a staff member who meets any of the following circumstances:
1. Has been employed for 20 years or longer.
2. Has been employed for 10 years or longer but less than 20 years, and is aged 55 or older.
3. Has been at the highest seniority salary level in his or her position for 3 years or longer, and is aged 55 or older.

A staff member who has been employed for 5 years or longer, and is aged 65 or older shall be subject to age-mandated retirement.
When a teacher is duly seconded and takes unpaid leave, unless seconded to a duly graded and assigned civil servant position, if the techer fulfills the conditions under the preceding paragraph during the unpaid leave period, and none of the circumstances set out in Article 25, paragraph 1 or Article 75, paragraph 1 exists, the staff member may claim pension within 10 years from the time the teacher reaches the age of 65.
Under any of the following circumstances, a staff member who has reached the age specified in paragraph 1 may extend his or her service, without being subject to the age-mandated retirement requirement under paragraph 1:
1. A principal of a school at the level of junior college or higher may continue to serve in the position until the term of his or her appointment ends; the person may also continue to serve if re-appointed after that term of appointment. However, no extension of an appointment is permitted once a person reaches the age of 70.
2. A professor or associate professor of a school at the level of junior college or higher may continue to serve in that position based on teaching needs and subject to the person's agreement to continue his or her service. Such extensions may continue, at the longest, only until the academic semester in which the person reaches the age of 70.
If a principal of a school at the level of junior college or higher who continues to serve until the term of his appointment ends pursuant to subparagraph 1 above and then returns to his original position as professor or associate professor at the original employing school in accordance with relevant laws and regulations, he or she may subsequently extend his or her service in accordance with subparagraph 2 of the preceding paragraph.
The central competent authority shall adopt regulations governing the conditions, time limits, review and approval procedures, and other matters relating to extensions of service under the preceding two paragraphs.

When a principal, teacher, professional technician, teacher of a professional or technical subject, or full-time coach takes voluntary retirement under Article 18, paragraph 1, subparagraph 1 or 2 or Article 19, unless there is some exceptional reason to retire on some other date, the standard effective date for such retirement will be 1 February or 1 August.
When a principal, teacher, professional technician, teacher of a professional or technical subject, or full-time coach becomes subject to age-mandated retirement under paragraph 1, the effective date of retirement shall be as follow:
1. If the person's birth date falls during the period from 1 August to 31 January of the following year, the effective date of retirement will be no later than 1 February of the following year.
2. If the person's birth date falls during the period from 1 February to 31 July, the effective date of retirement will be no later than 1 August.
When a researcher, new-scheme teaching assistant, staff member, or technical personnel with a rare specialty becomes subject to age-mandated retirement under paragraph 1, the effective date for retirement shall be as follows:
1. If the person's birth date falls during the period from January to June, the effective date of retirement shall be 16 July.
2. If the person's birth date falls during the period from July to December, the effective date of retirement shall be 16 January of the following year.
The standards for determining exceptional causes set out in paragraph 1 shall be adopted bythe central competent authority.

If a staff member has been employed for 5 years and any of the following circumstances applies, the staff member's employing school shall take the initiative to carry out compulsory retirement:
1. The staff member does not meet the conditions for voluntary retirement under Article 18, and is under a declaration of guardianship or assistance which has not yet been lifted.
2. The staff member has one of the following physical or mental illnesses, injuries, or disabilities, and the employing school issues a certificate that he or she is incapable of performing the duties of his or her work, and also incapable of performing other equivalent work:
（1）Submits a certificate issued by a qualified hospital stating that he or she meets the standard of "semi-incapacitated" or a more severe disability under the Civil Servant and School Staff Insurance Disability Benefit Standards, and has already duly received disability payment, or a certificate stating that he or she is assessed to have a mental or physical disability ranking of "severe" or greater under the ranking system set by the central competent health authority.
（2）Suffers a stage 3 or later malignant tumor, and submits a certificate from a qualified hospital.
Before the employing school takes the initiative to carry out compulsory retirement for a staff member pursuant to subparagraph 2, item 1 of the preceding paragraph, it shall provide vocational rehabilitation services for the staff member pursuant to Article 33 of the Act for the Protection of Rights of People with Disabilities.

If the declaration of guardianship or assistance or physical or mental illness, injury, or disability of a staff member under subparagraph 1 or 2 of paragraph 1 of the preceding article results from a cause in the course of the staff member's performance of his or her official duties（hereinafter, "occupational injury or illness"）, the staff member's compulsory retirement will not be subject to the requirement of having been employed for 5 years of service.
The term "occupational injury or illness" in the preceding paragraph means that the employing school certifies, and the competent authority reviews and determines, that a staff member's physical or mental illness, injury, or disability has a substantial causal relationship with one of the following causes:
1. The occurrence of an accidental hazard or an event of violence, or falling prey to an illness, during the performance of duties, resulting in injury or illness.
2. The occurrence of an accidental hazard in the workplace, while away on official business, or while traveling to or from the workplace or place of the official business, resulting in injury or illness. However, this shall not apply to an injury or illness resulting from a serious traffic violation by the staff member himself or herself.
3. Sudden onset of illness during the performance of duties, in the workplace, or while traveling to or from the workplace or place of official business, resulting in injury or illness.
4. Unyielding diligence or overwork, resulting in injury or illness.
When any doubt arises regarding the determination of an occupational injury or illness under the preceding subparagraphs and of the causal relationship in respect thereto, the competent authority shall select scholars and experts to compose a Committee for the Review of Cases in Which There is Doubt Concerning Compulsory Retirement Due to Occupational Causes and Bereavement Compensation Due to Occupational Causes to carry out review.
When reviewing individual cases with respect to the elements of sudden onset of illness, or unyielding diligence or overwork, resulting in illness or injury, under subparagraphs 3 and 4 of paragraph 2, the review committee under the preceding paragraph may refer to the Reference Criteria for the Review of Civil Servants Suffering Sudden Onset of Illness Due to Occupational Causes or Death Resulting From Unyielding Diligence or Overwork.

If a circumstance in any of the following subparagraphs applies to a teacher, researcher, professional technician, teacher of a professional or technical subject, full-time coach, or new-scheme teaching assistant, the employing school, after reporting to the competent authority for approval, shall carry out severance of the person:
1. Because of adjustments to departments, graduate intstitutes, subjects, divisions, or curricula, or because the school is reducing the number of courses, suspending operations, merging, or restructuring, there is no longer work for the person in their current position and there is no other suitable work to which the person can be transferred.
2. The person is incompetent for the work in their current position, as supported by specific facts, and there is no other suitable work to which the person can be transferred, and this has been reviewed and verified by the school's teaching staff evaluation committee or coaching staff evaluation committee.
3. The person is under a declaration of guardianship or assistance which has not been lifted.
A principal to whom any of the circumstances in the preceding paragraph applies will be severanced by the competent authority.
Severance of staff and technical personnel with rare specialties will be handled in accordance with provisions governing severance matters and procedures for civil servants.

If a staff member applies for retirement or severance in any of the following circumstances, the school or the competent authority shall decline to process the application:
1. During a period of unpaid leave. However, this restriction shall not apply if the provisions of Article 20, paragraph 2 are satisfied.
2. During a period of administrative suspension or provisional removal from employment.
3. During a period of disciplinary suspension.
4. During a period while the school or the competent authority duly is processing or has processed his or her provisional removal from employment, removal from employment, or denial of renewed employment.
5. The staff member is suspected of having committed a criminal offense against the internal or external security of the State after the end of the Period of National Mobilization in Suppression of Communist Rebellion, and any of the following circumstances applies:
（1）A final and conclusive judgment has not yet been rendered regarding the alleged offense.
（2）The public prosecutor has rendered a disposition of non-indictment or deferred indictment regarding the alleged offense, but the disposition has not yet become final and conclusive.
（3）The public prosecutor has rendered a disposition of deferred indictment regarding the alleged offense, and the disposition has become final and conclusive, but the deferral period has not yet expired.
6. The staff member is tried for having committed a criminal offense under the Anti-Corruption Act or under the Offenses of Malfeasance in Office chapter of the ROC Criminal Code, and sentenced to a punishment of fixed-term imprisonment or a more severe punishment, but the sentence has not yet become final and conclusive.
7. A case involving the staff member has duly been referred by a responsible authority for disciplinary measures or referred to the Control Yuan for review, or a judgment imposing any disciplinary sanction has already been rendered by a responsible authority but has not yet taken effect.
8. Where specially provided by another law.
A staff member under subparagraph 4 to 8 of the preceding paragraph shall, from the last effective date for age-mandated retirement（hereinafter, the mandatory retirement date）, provisionally be placed under administrative suspension or provisional removal from employment.
A staff member falling under paragraph 1, subparagraph 2 or falling under the preceding paragraph, from the mandatory retirement date until the date the cause ceases to exist, unless otherwise specially provided by law, may be issued one-half of the base salary（or seniority salary）as in the case of a person under administrative suspension or provisional removal from employment.

A staff member who surpasses the mandatory retirement date due to a circumstance under paragraph 1, subparagraphs 2 to 8 of the preceding article, shall, within 6 months after the cause ceases to exist, submit relevant certifying documents in writing to the former employing school to apply for age-mandated retirement.
In all cases of retirement of staff members under the preceding paragraph, the staff member's mandatory retirement date shall be the effective date of retirement. However, the effective date of retirement of a person under a disciplinary suspension shall be the date that the cause has ceased to exist and the authorized agency approves his or her reinstatement to duty.
If a staff member under paragraph 1 dies within the 6-month application deadline, his or her survivors under Article 43 may apply for payment under the standards for lump-sum pension payment. However, if the staff member had already met the conditions of eligibility to opt for a monthly pension, his or her survivors may opt to receive a lump-sum survivor benefit or a survivor annuity pursuant to Articles 43 to 48.
The one-half of base salary（or seniority salary）issued to a staff member under paragraph 1 pursuant to paragraph 3 of the preceding article shall be recovered by the pension paying or disbursing agency by deducting it out of the pension, lump-sum survivor benefit, or survivor annuity paid.
If any of the following circumstances applies to a staff member under paragraph 1, he or she shall remain ineligible to claim pension:
1. He or she is duly dismissed, discharged, removed from employment, or denied renewal of employment.
2. At the expiration of the 6-month deadline for application, there still exists a statutory ground for loss of rights as set out in Article 75.

Retiring staff member pensions are divided into three types:
1. Lump-sum pension payment.
2. Monthly pension.
3. Combination of one-half the lump-sump pension payment and one-half the monthly pension（"partial monthly pension"）.
When a staff member member opts to receive his or her pension in the form of partial monthly pension under subparagraph 3 of the preceding paragraph, the payments shall be calculated pro-rata to the lump-sum pension payment and the monthly pension payment to which that staff member would have been entitled.

For a staff member who retires before this Act comes into force, his or her pension will be calculated on the basis of his or her last base salary（or seniority salary）assigned during active service and the content of the base unit will be calculated in accordance with the following provisions:
1. Pay for years of service before the implementation of the New Pension System: for a lump-sum pension payment, the last base salary（or seniority salary）of personnel of the same salary grade during the staff member's active service, plus NT$930, shall constitute the base unit; for a monthly pension, the last base salary（or seniority salary）of personnel at the same salary grade during the staff member's active service shall constitute the base unit, in addition to which NT$930 shall be paid in full.
2. Pay for years of service after the implementation of the New Pension System: the last base salary（or seniority salary）of personnel of the same salary grade during the staff member's active service, plus 100 percent, shall constitute the base unit.
For a staff member who retires after this Act comes into force, the content of the base unit for pension payable for his or her years of service before and after the implementation of the New Pension System will be calculated in accordance with the following provisions:
1. Payment for years of service before the implementation of the New Pension System:
（1）Lump-sum pension payment: the average salary amount applicable for the year of retirement as listed in Schedule 1, plus NT$930, shall constitute the base unit.
（2）Monthly pension: the average salary amount applicable for the year of retirement as listed in Schedule 1 shall constitute the base unit, in addition to which NT$930 shall be paid in full.
2. Payment for years of service after the implementation of the New Pension System: The average salary amount for the respective fiscal years as listed in Schedule 1, plus 100 percent, shall constitute the base unit.
In the case of a staff member who has met the statutory conditions for payment of monthly pension before this Act comes into force but whose retirement becomes effective after this Act comes into force, the pension payable for his or her years of service before and after the implementation of the New Pension System shall nevertheless still be calculated and paid based on the pension calculation basis and base unit content set out in paragraph 1.

• Schedule 1 Calculation Basis for Pension Payments For Retired Staff Members After the Enforcement of this Act.pdf

Pension payable for a staff member's years of service in employment before the implementation of the New Pension System shall be calculated and paid, based on the pension calculation basis and base unit content set out in the preceding article, in accordance with the following standards:
1. Lump-sum pension payment: for 5 full years of employment, 9 base units will be awarded; for each additional year thereafter, 2 additional base units will be awarded; after 15 full years of employment is reached, a one-time extra award of 2 base units will be given; the maximum total number of base units awardable shall be 61. In the calculation of the years of service at retirement, base units for any number of months less than 1 year shall be awarded pro-rata to the number of months relative to 1 year; any period of less than 1 month shall be calculated as 1 month.
2. Monthly pension: for each year of employment, 5 percent of the base unit content will be awarded; for employment of less than 1 year, for each month of employment, one-twelfth of 5 percent of the base unit content will be awarded; after 15 full years of employment is reached, 1 percent will be awarded for each additional year of employment; the maximum shall be 90 percent. In the calculation of the years of service at retirement, base units for any number of months less than 1 year shall be awarded pro-rata to the number of months relative to 1 year; any period of less than 1 month shall be calculated as 1 month.
If a teacher or a principal satisfies the provisions of Article 15, paragraph 2, additional pension base units shall be awarded for the lump-sum pension payment, as set out in subparagraph 1 of the preceding paragraph, but not to exceed a maximum total of 81 base units; for a monthly pension payment, the additional award shall not exceed a maximum of 95%.

Pension payable for a staff member's years of service in employment after the implementation of the New Pension System shall be calculated and paid, based on the pension calculation basis and base unit content set out in Article 28, in accordance with the following standards:
1. Lump-sum pension payment: based on the years of service in employment, for each year of service, one and one-half base units will be awarded, up to a maximum of 53 base units awarded for 35 years of employment; if the total number of approved years of service exceeds 35 years, then beginning from the 36th year, one additional base unit will be awarded for each additional year of employment, up to a maximum of 60 base units. In the calculation of the years of service at retirement, base units for any number of months less than 1 year shall be awarded pro-rata to the number of months relative to 1 year; any period of less than 1 month shall be calculated as 1 month.
2. Monthly pension: Based on the years of service in employment, for each year of employment, 2 percent of the base unit content will be awarded, up to a maximum of 70 percent awarded for 35 years; if the total number of approved years of service exceeds 35 years, then beginning from the 36th year, 1 percent of the base unit content will be awarded for each additional year; the maximum award shall be 75 percent. In the calculation of the years of service at retirement, base units for any number of months less than 1 year shall be awarded pro-rata to the number of months relative to 1 year; any period of less than 1 month shall be calculated as 1 month.

When a staff member with less than 15 full years of service in employment claims pension under this Act, unless otherwise provided in this Act, the staff member shall receive a lump-sum pension payment.
When a staff member with 15 full years of service in employment claims pension under Article 18, paragraph 2 or Articles 20, 22, or 23 of this Act, unless otherwise provided in this Act, the staff member may opt to receive, for the payment of his or her pension, one of the types of pension set out in Article 27, paragraph 1.
When a staff member claims pension under Article 19, the pension will be paid as follows:
1. One who has been employed for 20 years:
（1）If aged 60 or older, may opt to receive one of the types of pension set out in Article 27, paragraph 1.
（2）If aged less than 60, may opt to receive one of the types of pension set out in the subparagraphs of paragraph 4 of Article 32, in which case 60 will be the starting age for payment of the monthly pension.
2. One who has been employed for 15 years but less than 20 years, and is aged 55 or older, may opt to receive one of the types of pension set out in the subparagraphs of paragraph 4 of Article 32, in which case 60 will be the starting age for payment of the monthly pension.
3. One who has been at the highest seniority salary level in his or her position for 3 years or longer, and is aged 55 or older:
（1）One who has been employed for 15 years of service or more may opt to receive one of the types of pension set out in the subparagraphs of paragraph 4 of Article 32, in which case 60 will be the starting age for payment of the monthly pension.
（2）One who has been employed for less than 15 years of service shall receive a lump-sum pension payment.

A staff member who has been employed for 15 years and claims pension under Article 18, paragraph 1 may opt to receive full monthly pension if he or she satisfies the following requirements regarding the starting age for payment of monthly pension:
1. Aged 58 or older. However, timely adjustments shall be made to this age in response to increases in average life expectancy and changes in the demographic structure of the workforce.
2. Except for principals and teachers of schools at the senior high school level and lower, the age for a claim under the preceding subparagraph for all other staff members will be raised one year each year beginning from 1 January 2016, until it reaches 65.
A staff member who has been employed for 15 years and claims pension under Article 18, paragraph 2, upon reaching age 55 may opt to receive a full monthly pension.
A staff member who has been employed for 25 years and claims pension under Article 18, paragraph 4, upon reaching age 60 may opt to receive a full monthly pension.
Before the starting ages for payment of monthly pension under the preceding three paragraphs, a staff member may opt to claim pension by one of the following methods:
1. Receive a lump-sum pension payment.
2. Receive a full monthly pension from the date of reaching the starting age for payment of monthly pension（hereinafter, deferred monthly pension）.
3. Begin receiving a monthly pension early, before reaching the starting age for payment of monthly pension; in that case, the amount to be paid will be reduced by 4 percent for each year early that the pension begins to be received（hereinafter, "reduced monthly pension"）. At most, the pension may begin to be received 5 years yearly, in which case it will be reduced by 20 percent.
4. Receive a one-half lump-sum pension payment, and receive a one-half monthly pension beginning from the date of reaching the starting age for payment of monthly pension.
5. Receive a one-half lump-sum pension payment, and begin receiving a one-half monthly pension earlier than the date of reaching the starting age for payment of monthly pension, with the amount reduced by 4 percent for each year early, and at most the pension may begin to be received 5 years early, in which case it will be reduced by 20 percent.
A staff member who claims pension under Article 18, paragraph 1 or 4, and to whom any of the following circumstances applies, may opt to receive a monthly or partial monthly pension without any reduction in amount, and shall not be subject to the restrictions in paragraphs 1 and 3 regarding the starting age for payment of monthly pension:
1. Has received a disability benefit under the Civil Servant and School Staff Insurance Act, and within 5 years prior to retiring, there is any fact of the staff member having been denied a salary raise because of having applied for extended sick leave, or having received a performance rating of "C" or lower, or having received no performance rating, or having been denied a salary raise because of an unsatisfactory score.
2. Meets the following age requirement listed below at the time the retirement becomes effective, and the sum total of the years of service creditable toward pension plus the person's actual age is greater than or equal to the index value for the relevant fiscal year as set out in Schedule 2:
（1）If retiring on or before 31 December 2016, shall be aged 50 or older.
（2）If retiring on or after 1 January 2017, shall be aged 55 or older.
The sum total of the years of service creditable toward pension plus the person's actual age shall be calculated based on the sum of full integer years of service and full integer years of age, fractional years of service and fractional years of age shall not be counted.
In the case of a staff member who before this Act comes into force has already met the statutory conditions to receive a monthly pension, when the staff member claims pension under Article 18, he or she may opt to receive one of the types of pension payments set out in paragraph 1 of Article 27, without being subject to the restrictions of paragraph 1 regarding the starting age for payment of monthly pension.

• Schedule 2 Statutory Index Value of the Combined Years of Service and Age of Personnel Taking Voluntary Retirement.pdf

When a staff member undergoes compulsory retirement under Article 23 due to an occupational injury or illness and claims a lump-sum pension paymen, if the staff member has been employed for less than 5 years, the lump-sum payment will be calculated based on 5 years. If the staff member claims monthly pension, and has been employed for less than 20 years, the monthly pension will be calculated based on 20 years.
If a staff member undergoes compulsory retirement under Article 23, paragraph 2, subparagraph 1 due to an occupational injury or illnessc, the staff member will be paid an additional lump-sum pension payment of from 5 to 15 base units; the standards for such additional payment shall be set out in the Enforcement Rules to this Act.
When a staff member is entitled to an additional lump-sum pension payment under the preceding paragraph, if another law also makes provisions for an additional payment for the same cause, the staff member may receive only one of the payments, but may choose which one to receive.
If any of the following circumstances applies to a person who has taken compulsory retirement before or after the promulgation and coming into force of this Act due to an occupational injury or illness, the provisions of Articles 37 and 38 shall not apply to the person:
1. The occurrence of an accidental hazard or an event of violence, or falling prey to an illness, during the performance of duties, which results in injury or illness.
2. A circumstance other than the circumstance in the preceding paragraph, which results in general paralysis or inability to take care of his or her own needs in everyday life.

In the case of a staff member who has years of service both before and after the implementation of the New Pension System, and is entitled to issuance of a compensation payment under Article 21-1, paragraph 5 or 6 of the former Statute Governing the Retirement of School Faculty and Staff, when the staff member's retirement becomes effective within 1 year from the date this Act comes into force, the compensation payment will still be paid in accordance with the original provision.
In the case of a staff member who before this Act comes into force has already been approved for and received a compenssation payment under Article 21-1, paragraph 5 or 6 of the former Statute Governing the Retirement of School Faculty and Staff, that payment will still be governed by the provisions originally applicable before the enforcement of this Act.
In a case under the preceding paragraph of a staff member who has already been approved for and been receiving a monthly compensation payment under Article 21-1, paragraph 5 of the former Statute Governing the Retirement of School Faculty and Staff, after this Act comes into force, a calculation shall be made of the lump-sum compensation amount which the staff member should be entitled to receive under Article 21-1, paragraph 5 of the former Statute Governing the Retirement of School Faculty and Staff based on the staff member's approved years of service and rank at retirement and the base salary（or seniority salary）of personnel of the same rank in active service at the time of the person's retirement, and after deducting any monthly compensation that the staff member has received before and after the coming into force of this Act, the remainder of that amount shall be issued to the person. If there is no remainder, no further amount need will be issued.

A retiring staff member is eligible for a preferential-interest savings deposit with the Bank of Taiwan Corporation for any lump-sum pension payment received for his or her years of service in employment before the implementation of the New Pension System and for any lump-sum old-age payment received for years of participation in Civil Servant and School Staff Insurance before the implementation of the New Pension System.
With respect to preferential-interest savings deposits for lump-sum pension payments and Civil Servant and School Staff Insurance lump-sum old-age payments as referred to in the preceding paragraph, the central competent authority, jointly with the Ministry of Finance, will draft regulations governing the eligible persons, and conditions for setting up, such preferential-interest savings deposits, and the deposit amounts, time limits, interest differential subsidies, and other matters related to such deposits, and the draft regulations will be submitted to the Executive Yuan for final approval.
The amount of a lump-sum old-age payment from Civil Servant and School Staff Insurance that may be deposited in a preferential-interest savings deposit by a person who has retired and receives pension on a monthly or partial monthly before this Act comes into force shall be governed by the original provisions from before the enforcement of this Act.

For a retired staff member who receives monthly pension, the preferential-interest savings deposit interest rate（hereinafter, "preferential interest rate"）for a lump-sum old-age payment from Civil Servant and School Staff Insurance shall be as follows:
1. From 1 July 2018 to 31 December 2020, the annual interest rate will be 9 percent.
2. From 1 January 2021, the annual interest rate will be zero.
For a staff member under the preceding paragraph, except for one receiving reduced monthly pension, if, after the preferential deposit interest has been calculated under the preceding paragraph on the lump-sum old-age payment from the Civil Servant and School Staff Insurance, the monthly retirement income is lower than the final-year replacement rate ceiling amount set out in Article 37 and Schedule 3, for the portion within that amount that is preferential deposit interest on a lump-sum old-age payment from Civil Servant and School Staff Insurance, the amount of the lump-sum old-age payment from Civil Servant and School Staff Insurance that is eligible for a preferential-interest savings deposit shall be calculated based on the annual interest rate of 18 percent. However, for monthly retirement income that is calculated under the original provisions from before this Act comes into force（hereinafter, the "original amount"）, if the original amount is already lower than the final-year replacement rate ceiling amount set out in Article 37 and Schedule 3, the preferential-interest savings deposit may be enjoyed based on the original deposit amount and the annual interest rate of 18 percent.
If the monthly retirement income calculated under the preceding two paragraphs and Articles 37 to 39 is lower than or equal to the minimum guaranteed amount, for the portion within the minimum guaranteed amount that is preferential deposit interest on an old-age payment from Civil Servant and School Staff Insurance, the amount of the lump-sum old-age payment from Civil Servant and School Staff Insurance that is eligible for a preferential-interest savings deposit shall be calculated based on the annual interest rate of 18 percent. However, if the original amount is already lower than the minimum guaranteed amount, the preferential-interest savings deposit may be enjoyed based on the original deposit amount and the annual interest rate of 18 percent.
If a retired staff member receives a lump-sum pension payment, the preferential interest rate with respect to the lump-sum pension payment and the Civil Servant and School Staff Insurance lump-sum old age payment shall be handled as follows:
1. If the monthly preferential deposit interest on the sum total of the lump-sum pension payment and the Civil Servant and School Staff Insurance lump-sum old-age payment is higher than the minimum guaranteed amount:
（1）On the principal corresponding to preferential deposit interest equal to the minimum guaranteed amount, interest will accrue at the annual interest rate of 18 percent.
（2）On the principal corresponding to preferential deposit interest exceeding the minimum guaranteed amount, the preferential interest rate will be determined as follows:
1. From 1 July 2018 to 31 December 2020, the annual interest rate will be 12 percent.
2. From 1 January 2021 to 31 December 2022, the annual interest rate will be 10 percent.
3. From 1 January 2023 to 31 December 2024, the annual interest rate will be 8 percent.
4. From 1 January 2025, the annual interest rate will be 6 percent.
2. If the monthly preferential deposit interest on the sum total of the lump-sum pension payment and the Civil Servant and School Staff Insurance lump-sum old-age payment is lower than or equal to the minimum guaranteed amount, preferential interest will accrue on the eligible principal at the annual interest rate of 18 percent.
The following provisions shall apply to a retired staff member who receives a partial monthly pension:
1. The provisions of paragraph 1 shall apply to the preferential deposit amount of any Civil Servant and School Staff Insurance lump-sum old-age payment that is obtained pro-rata to the proportion of the partial monthly pension. However, the minimum guaranteed amount and final-year replacement rate ceiling amount under paragraph 2 shall be calculated pro-rata to the proportion of the partial monthly pension.
2. The provisions of the preceding paragraph shall apply to the eligible preferential deposit amount of a partial lump-sum pension payment plus the preferential deposit amount of a Civil Servant and School Staff Insurance lump-sum old-age payment that is received pro-rata to that lump-sum pension payment. However, the minimum guaranteed amount shall be calculated pro-rata to the proportion of the partial lump-sum pension payment.

• Schedule 3 Comparison of the Retirement Income Replacement Rate According to a Retired Staff Member's Approved Years of Service at Retirement.pdf

The monthly retirement income of a staff member whose retirement becomes effective before this Act comes into force may not, after this Act comes into force, exceed the amount calculated based on the replacement rate ceiling.
The replacement rate of the preceding paragraph shall be calculated according to the replacement rate set out in Schedule 3 based on the retired staff member's approved years of service at retirement. In the case of a staff member who has been employed for 15 years, the replacement rate is 45 percent. Subsequently, the replacement rate will increase by 1.5 percent for each additional year, to a maximum of 75 percent at 35 years. From the 36th year, it will increase by 0.5 percent for each additional year, up to a maximum of 40 years. Any fractional service period of less than 1 year will be calculated pro-rata; any period of less than 1 month will be calculated as 1 month.
The replacement rate ceiling referred to in the preceding paragraph shall be determined according to the replacement rates listed for the respective fiscal years in Schedule 3 based on the retired staff member's approved years of service at retirement.
In the case of a staff member who opts to receive a partial monthly pension, the replacement rate referred to in the preceding three paragraphs shall be calculated pro-rata in proportion to the partial lump-sum pension payment received and the partial monthly pension payment received.
In the case of a staff member whose retirement becomes effective before this Act comes into force, the staff member's monthly retirement income will be recalculated in accordance with the preceding four paragraphs based on the salary standards at the time this Act comes into force. Once it has been reviewed and finalized, it will never again be recalculated in tandem with adjustments to the base salary（or seniority salary）of personnel of the same rank in active service.

• Schedule 3 Comparison of the Retirement Income Replacement Rate According to a Retired Staff Member's Approved Years of Service at Retirement.pdf

The monthly retirement income of a staff member whose retirement becomes effective after this Act comes into force may not exceed the amount calculated based on the replacement rate ceiling.
The replacement rate of the preceding paragraph shall be calculated according to the replacement rate set out in Schedule 3 based on the retired staff member's approved years of service at retirement. In the case of a staff member who has been employed for 15 years, and up to the 40th year, the provisions of paragraph 2 of the preceding article shall be followed.
The replacement rate ceiling referred to in the preceding paragraph shall be determined according to the replacement rates listed for the respective fiscal years in Schedule 3 based on the retired staff member's approved years of service at retirement.
In the case of a staff member who opts to receive a partial monthly pension, the replacement rate referred to in the preceding three paragraphs shall be calculated pro-rata in proportion to the partial lump-sum pension payment received and the partial monthly pension payment received.
In the case of a staff member whose retirement becomes effective after this Act comes into force, the staff member's monthly retirement income will be calculated in accordance with the preceding four paragraphs based on the salary standards at the time the retirement becomes effective. Once it has been reviewed and finalized, it will never again be recalculated in tandem with adjustments to the base salary（or seniority salary）of personnel of the same rank in active service.

• Schedule 3 Comparison of the Retirement Income Replacement Rate According to a Retired Staff Member's Approved Years of Service at Retirement.pdf

After the preferential deposit interest on a retired staff member's monthly retirement income has been reduced pursuant to Article 36, if it still exceeds the replacement rate ceiling for the respective fiscal year as set out in Schedule 3, reductions shall be made to the monthly retirement income in the following order, until it no longer exceeds the replacement rate ceiling income amount:
1. Monthly preferential deposit interest on the lump-sum old-age payment from the Civil Servant and School Staff Insurance, or on the lump-sum pension payment.
2. Monthly pension（including monthly compensation）calculated for years of service before the implementation of the New Pension System.
3. Monthly pension calculated for years of service after the implementation of the New Pension System.
If the retirement income received monthly by a retired staff member, after calculation in accordance with Article 37 or the preceding article, is lower than the minimum guaranteed amount, the minimum guaranteed amount shall be paid. However, if the original amount was already lower than the minimum guaranteed amount, the original amount shall be paid.
In the case of a staff member who opts to receive a partial monthly pension, the minimum guaranteed amount referred to in the preceding paragraph shall be calculated pro-rata to the proportion of the partial montly pension.

• Schedule 3 Comparison of the Retirement Income Replacement Rate According to a Retired Staff Member's Approved Years of Service at Retirement.pdf

The full amount of any pension and benefit costs that are conserved by government at all levels from reductions to retired staff members' retirement incomes pursuant to Articles 36 to 38 shall be injected into the Pension fund, and may not be diverted to any other use.
The amount injected into the Pension Fund under the preceding paragraph shall be determined by the Executive Yuan jointly with the Examination Yuan by 1 March of the year following the reduction to the monthly retirement income of retired staff members, and the fund management agency shall then include it in the preparation of the budget for the next fiscal year in accordance with budget procedures, and it shall be appropriated by the various levels of government after the legislative procedures for the annual budget are complete.
The amount injected each fiscal year as referred to in the preceding paragraph shall regularly be publicly announced online by the fund management agency.

With the exception of a staff member taking age-mandated retirement, when a staff member takes retirement or severance in tandem with the employing school duly carrying out staff downsizing because of the school's, closure, merger, or restructuring, the staff member may be issued a one-time additional lump-sum salary-and-allowance relief payment of not more than 7 months of salary and allowance.
If a staff member under the preceding paragraph is already within 7 months before the effective date of age-mandated retirement, the additional lump-sum salary-and-allowance relief payment shall be issued based on the number of months before that effective date that the staff member retires early.
If a staff member under paragraph 2, within 7 months from the date the retirement or severance takes effect, is reemployed in any of the positions listed in the subparagraphs of paragraph 1 of Article 77 and the total remuneration received monthly exceeds the statutory basic wage, the reemploying agency or school shall subtract from the lump-sum salary-and-allowance relief payment the amount corresponding to the actual number of months that the severance or retirement lasted before the reemployment, and then deduct the remainder from the staff member's pay, and refund it to the former employing school, or the consolidated or re-subordinated school, or the superior competent authority.

The lump-sum pension payment standards set out in Articles 29 and 30 apply mutatis mutandis to the calculation and payment of severance pay for a staff member.

After the death of a staff member receiving a monthly or partial monthly pension, his or her survivors will additionally be awarded a lump-sum survivor benefit. One-half of the amount payable shall be distributed to his or her spouse who has not remarried, and the remainder shall be paid in equal shares to his or her other survivors in the following order of precedence:
1. Children.
2. Parents.
3. Siblings.
4. Grandparents.
If a retired staff member does not have any surivors specified in subparagraphs 1 or 2 of the preceding paragraph, his or her lump-sum survivor benefit shall be distributed solely to his or her spouse who has not remarried. If he or she has no spouse, the distributable lump-sum survivor benefit shall be distributed to the survivors listed in the subparagraphs of the preceding paragraph in the order of precedence listed. If there are multiple survivors at the same level of precedence, the lump-sum survivor benefit will be distributed in equal shares among the eligible survivors at that level of precedence.
If any of the survivors at the same level of precedence waives the right, or because of a statutory cause loses the right, to receive the lump-sum survivor benefit, his or her share of the benefit shall be redistributed among the remainder of the survivors at the same level of precedence in accordance with the preceding two paragraphs. If there are no survivors at the highest level of precedence, the survivor benefit shall be distributed among the survivors at the next level of precedence in accordance with the preceding paragraph.
When multiple survivors at the same level of precedence who are eligible for distribution of lump-sum survivor benefit under the preceding three paragraphs make such a claim, they may mandate one from among themselves who has legal capacity to act to make the application on behalf of them all. If a survivor lacks legal capacity to act, his or her statutory agent shall make the application on his or her behalf.

Lump-sum survivor benefits under the preceding article shall be calculated and paid as follows:
1. First calculate the retired staff member's distributable lump-sum pension payment, according to the payment standards applicable at the time the staff member retired, based on the staff member's approved years of service at retirement and the calculation basis and base unit content of the last monthly pension the staff member received. After deducting all monthly pension already received, distribute the remainder. If there is no remainder, no further distribution will be made.
2. Then additionally pay a lump-sum survivor benefit of 6 base units, each consisting of the last monthly base salary（or seniority salary）of personnel of the same salary grade during the retired staff member's active service plus 100 percent. This shall be paid regardless of whether there is any remainder under the preceding subparagraph.

If a survivor under Article 43, paragraph 1 is the spouse, a minor child, an adult child with a physical or mental disability who is incapable of working, or a parent, and does not take the lump-sum survivor benefit, he or she may, in accordance with the provisions below, instead receive a survivor annuity of one-half of the monthly pension, or one-half of the partial monthly pension, received by the retired staff member at the time of death.
1. A spouse who meets one of the conditions below and who has not remarried may receive a lifelong annuity, provided that the statutory marriage relationship had existed for a cumulative duration of at least 10 years at the time of the retired staff member's death:
（1）Aged 55.
（2）Has a physical or mental disability and is incapable of working.
2. A minor child may receive the annuity until he or she reaches adulthood. However, an adult child with a physical or mental disability and is incapable of working may receive a lifelong annuity.
3. A parent may receive a lifelong annuity.
A spouse who has not remarried but who is not yet aged 55, and so is ineligible to receive the survivor annuity under subparagraph 1 of the preceding paragraph, may receive the lifelong survivor annuity from the day he or she reaches age 55.
A deceased retired staff member's spouse who has not remarried and who has a physical or mental disability and is incapable of working, or child who has a physical or mental disability and is incapable of working, under paragraph 1, subparagraph 1, item 2, or subparagraph 2, shall meet the statutory requirements of "severe" or greater physical or mental disability and have been issued a physical or mental disability manual or certificate, or be under a declaration of guardianship or assistance which has not been lifted, and each fiscal year shall submit income filing information from the preceding fiscal year to prove that the survivor's average monthly income does not exceed the statutory basic wage.
A survivor under any subparagraph of paragraph 1 may not opt for survivor annuity if the survivor receives any pension, bereavement compensation, preferential deposit interest, or other regular payment equivalent to pension or other separation pay, paid out of a government budget or by a government-owned enterprise, as granted under this Act or other laws or regulations. However, this restriction shall not apply if the survivor chooses to waive the regular payment distributable to the survivor himself or herself, and the authority originally responsible for the distribution of the regular payment agrees.
After a deceased retired staff member's survivor has opted for a survivor annuity under paragraph 1, if distribution of the survivor annuity is to be terminated because the survivor dies or because there is some other statutory cause for loss of the survivor annuity, the deceased retired staff member's distributable lump-sum pension payment shall be calculated in accordance with the preceding article. After deducting all monthly pension and survivor annuity already received by the staff member and survivors, if there is any remainder, it shall be distributed among the remaining survivors based on the order of precedence and ratios set out in Article 43.

If a person receiving a monthly or partial monthly pension dies before this Act comes into force, his or her survivors, unless under a circumstance in paragraph 5 of the preceding article, shall still have a choice between receiving a lump-sum survivor benefit or survivor annuity under the original provisions from before the enforcement of this Act.
If a person receiving a monthly or partial monthly pension dies within 1 year from the date this Act comes into force, when his or her survivors opt for a survivor annuity, it shall be handled in accordance with Article 14-1 of the former Statute Governing the Retirement of School Faculty and Staff that was in force before the enforcement of this Act, and paragraph 4 of the preceding article shall not apply.

If a staff member receiving a monthly or partial monthly pension dies and any of the following circumstances exists, the former employing school may proceed to take three base units of lump-sum survivor benefit, and handle his or her funeral affairs:
1. The staff member has no survivors lawfully eligible to receive lump-sum survivor benefits.
2. The staff member has no survivors in the Taiwan area, and his or her survivors residing in the Mainland Area have not tended to the handling of the funeral affairs.
3. The staff member has are no survivors in the Taiwan area, and it is unknown whether there are survivors in the Mainland Area.
If any residual amount remains from the lump-sum survivor benefit used to handle the funeral affairs of the deceased retired staff member under the preceding paragraph, it will go to the Public Treasury and the Pension Fund, respectively, at a ratio calculated based on the deceased's approved years of service before and after the implementation of the New Pension System.
A Mainland Area survivor of a staff member falling under subparagraph 2 or 3 of paragraph 1, who is eligible to claim a lump-sum survivor benefit, may, within the effective period for rights of claim under public law as set out in the Administrative Procedure Act, claim the 3 base units of lump-sum survivor benefit not taken by the employing school and the residual amount of lump-sum survivor benefit under the preceding paragraph.

If the retired staff member made a will before death, and designated a recipient or recipients of the lump-sum survivor benefit or survivor annuity from among the survivors set out in Article 43, paragraph 1, the staff member's will shall prevail. However, the proportion to be received by any minor child of the retired staff member may not be lower than the proportion that child would originally have been entitled to receive.
If the retired staff member did not make a will before death and the survivors at the same order of precedence are unable to come to agreement and make a uniform choice for either the lump-sum survivor benefit or the survivor annuity, the survivors may each make their own respective choice, and the proceeds shall be distributed in the proportion determined in accordance with Article 43, paragraph 1.

If a retired staff member who has opted for a deferred monthly pension pursuant to Article 31, paragraph 3 or Article 32, paragraph 4, subparagraph 2 or 4 dies before reaching the starting age for payment of the monthly pension, his or her survivors may, according to their eligibility, claim a lump-sum survivor benefit or survivor annuity pursuant to Article 43 or 45.

If a staff member who, after the implementation of the New Pension System and prior to the enforcement of this Act, has been approved for and receives a a monthly or partial monthly pension, dies after this Act comes into force, his or her survivors shall claim a lump-sum survivor benefit or survivor annuity pursuant to Articles 43 to 45.
If a staff member who, before the implementation of the New Pension System, has been approved and receives a a monthly or partial monthly pension, dies after this Act comes into force, lump-sum survivor benefits received by his or her survivors shall be paid in accordance with the provisions and standards that were originally in force before the implementation of the New Pension System.
If a survivor under the preceding paragraph meets the requirements of Article 45, the survivor may choose to receive a survivor annuity instead.