Chapter 5 Insurance fund and Expense
Government should install National Pension Insurance Fund (hereinafter referred to as “ the Fund”) for the Insurance. Sources for the Fund are
1. Lump sum appropriation from the central government when installing.
2. Income from the premium.
3. Share assumed by the central competent authority according to the laws and the responsibility reserve from the central government.
4. Income from interest and fine.
5. Revenue from the interest and utilization of the Fund.
6. Other incomes.
The central government will assume, up to 3.5% of the total premium of that specific year, the overhead and administrative costs incurred from the insurer’s operation of the Insurance.
In addition to the basic guaranteed pension payment which will be budgeted and paid on a yearly basis by central competent authority as stipulated in Article 36, the funding for the subsidized premium and related expenses which should be assumed by the central competent authority according to the act will be in the following orders. Surplus, if any, will be listed as the central government’s responsibility reserve for subsequent year.
1. Surplus from Public Welfare Lottery for the national pension payment.
2. Increase the levying rate for business tax by 1%. The scope and period of implementation will be decided by administrative orders issued by the Executive Yuan.
The raising of Public Welfare Lottery surplus and business tax as stipulated in the previous Paragraph will be carried out, by the Fund, through direct appropriation from the premium, the assumed share of funding by the central competent authority according to the laws, and the central government’s responsibility reserves. This appropriation will also serve as the financial tools for the funding as stipulated in Article 45, Item 1.
If the central competent authority subsidized premium and funding are still insufficient after the funding as stipulated in Paragraph 1, the central competent authority should budget to compensate for this shortage if it cannot be supported by the central government’s responsibility reserves.
In addition to the utilizations stipulated in the act, the utilization of the Fund is restricted to investment only and cannot be appropriated or disposed otherwise. Regulations of managing, utilizing and supervising of the Fund will be drawn by the central competent authority which will then report to the Executive Yuan for approval.
Once approved by the central competent authority, the insurer is entitled to entrust financial institutions on the utilization of Fund. Regulations of the entrusted utilization, scope, funding and other affairs to be followed will be drawn by the insurer which will then report to the central competent authority for approval and announcement.
Details on the income/expense and utilization of Fund and the accumulated amount will be reported, by the insurer, to the central competent authority for annual announcement.
The government will assume the ultimate paying responsibility from the Insurance’s finance.