A worker may apply for voluntary retirement under any of the following conditions:
1. Where the worker attains the age of fifty-five and has worked for fifteen years.
2. Where the worker has worked for more than twenty-five years.
3. Where the worker attains the age of sixty and has worked for ten years.

An employer shall not force a worker to retire unless any of the following situations has occurred:
1. Where the worker attains the age of sixty-five.
2. Where the worker is unable to perform his/ her duties due to disability.
The retirement age specified in item 1 of the preceding paragraph may be postponed through mutual agreement between the employer and the worker. A business entity may request the central competent authority to adjust the retirement age prescribed in item 1 of the preceding paragraph if the specific job entails risk, requires substantial physical strength, or otherwise of a special nature; provided, however, that the retirement age shall not be reduced below fifty-five.

The criteria for payment of worker pensions shall be as follows:
1. Two bases are given for each full year of service rendered. But for the rest of the years over 15 years, one base is given for each full year of service rendered. The total number of bases shall be no more than 45. The length of service is calculated as half year when it is less than six months and as one year when it is more than six months;
2. As set forth in Subparagraph 2 of Paragraph 1 of Article 54, an additional 20% on top of the amount calculated according to the preceding subparagraph shall be given to workers forced to retire due to disability incurred from the execution of their duties.
The retirement pension base as specified in Subparagraph 1 of the preceding paragraph shall be one month’s average wage of the worker at the time when his or her retirement is approved.
Employers shall pay the pensions specified in Paragraph 1 within 30 days from the day of retirement. Those unable to pay the amount in one lump sum may apply to the competent authority for approval to pay the amount in installments. If the retirement pension criteria established by business entities before the enforcement of the Act are better than those set forth in the Act, such criteria shall apply.

Employers shall appropriate labor pension reserve funds ranging between 2% and 15% of the total monthly wages of their employees and deposit such amount in a designated account. The funds in said account may not be used as an assignment, seizure, offset or security object. The central competent authority shall establish regulations on the proportion, procedure and management of the funds to be appropriated and present them to the Executive Yuan for approval.
Before the end of each year, employers shall assess the balance in the designated labor pension reserve funds account of the preceding Paragraph. If the amount is inadequate to pay pensions calculated according to the preceding Article for workers retiring in the same year according to Article 53 or subparagraph 1 of Paragraph 1 of Article 54, the employer is required to make up the difference in one appropriation before the end of March the following year and submit the statement to the Business Entity Supervisory Committee of Labor Retirement Reserve for review.
The central competent authority shall set up the Labor Pension Fund Supervisory Committee to manage the Labor Pension Fund composed of the monthly appropriated labor pension reserve funds of Paragraph 1. The central competent authority shall also define the organization of said committee, its meeting procedures and regulations on related matters.
The central competent authority shall coordinate with the Ministry of Finance to commission a financial institution to be in charge of the collection and spending, custody and utilization of the Fund specified in the preceding Paragraph. The minimum earnings from the Fund may not be less than the two-year-term time deposit interest offered by local banks; in the event of a deficit, it shall be covered by the national treasury. The central competent authority shall establish the regulations regarding the collection and spending, custody and utilization of the Fund and present them to the Executive Yuan for approval.
The supervision of labor pension reserve funds appropriated by employers shall be supervised by the Supervisory Committee of Labor Retirement Reserve composed of representatives for workers and employers. Worker representatives on the committee may not be less than two thirds of the members in the committee; the central competent authority shall establish the regulations for the organization of the committee.
The decision or adjustment of the proportion of labor pension reserve funds to be appropriated each month by employers must be reviewed and approved by their Business Entity Supervisory Committee of Labor Retirement Reserve and presented to the local competent authority for approval.
When processing loan applications from businesses that require the investigation of the labor retirement reserve appropriation of such business entity, financial institutions may request the local competent authority to provide such data.
Financial institutions acquiring the data of the preceding Paragraph are obliged to keep the data confidential and to also make certain that related data safety audits are conducted.
The central competent authority shall consult with the Financial Supervisory Commission to establish regulations regarding the content and range of the data of the two preceding Paragraphs as well as the application procedure and other rules to follow.

Workers' years of service shall be limited to years of employment by the same business entity. In determining the years of service of a worker who is transferred to another business entity owned by the same employer, and in determining accumulated service years recognized by a new employer on a continued basis under Article 20 of the Act, the years of service at the different business entities shall be combined for calculation purposes.

The right of a worker to claim retirement benefits shall be aborted if it is not exercised within five years from the month following the effective date of retirement.
The right to claim retirement benefits shall not be assigned, offset, mortgaged, or guaranteed.
Applicants claiming retirement benefits pursuant to this Act shall open a specific account with necessary documents at a financial institution for the deposit of retirement benefits.
The deposits in the specific account of the preceding Paragraph shall not be the objects of offset, mortgage, security or compulsory execution.