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.