Retirement of staff members is divided into voluntary retirement, age-mandated retirement, and mandatory retirement.

A staff member’s voluntary retirement shall be approved in either of the following circumstances:
1.The staff member has reached the age of sixty.
2.The staff member has been employed for twenty-five full years.
A private school that is undertaking staff retrenchments in accordance with ordinances in conjunction with an organizational restructuring, cessation of its operations, or an amalgamation may approve voluntary retirement for a staff member who does not meet the requirements set out in the preceding paragraph but to whom any of the following circumstances pertain:
1.The staff member has been employed for twenty full years or longer.
2.The staff member has been employed for ten full years or longer, and has reached the age of fifty.
3.The staff member has been at the highest seniority pay level in his or her position for three full years.
The central competent authority may consider lowering the age stipulated in Paragraph 1, Subparagraph 1 for people whose job positions have restrictive physical requirements. It is not, however, permitted to be lower than fifty-five.

When a staff member reaches the age of sixty-five, a private school shall take the initiative to carry out the procedures for that staff member’s age-mandated retirement. However, his or her service may be extended if one of the following circumstances pertains:
1.If the term of appointment of a principal (president) has not yet expired, the person 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 seventy.
2.The term of appointment of a professor at a junior college or an institution of higher education may be extended based on teaching needs, and subject to the person’s agreement to continuing his or her service. However, each such extension is not permitted to exceed one year, and such extensions may only continue until the academic semester in which the person reaches the age of seventy.

If a teacher who has been seconded in accordance with regulations takes unpaid leave satisfies the provisions of the preceding article during the unpaid leave period, the teacher may arrange their retirement within five years after the day they turn sixty-five.
If the circumstances set out the preceding paragraph pertain to a teacher during the period between the date that this Act took effect and May 2, 2019 and the person has not yet arranged their retirement, they may arrange their retirement within one year from the day the May 23, 2023 amendments to this Act take effect.

After this Act takes effect, if a private school appoints a principal (president) or a full-time teacher who is aged over sixty-five acting in accordance with the provisions of the Private School Act, the contributions to the Retirement and Compensation Fund shall all be made by the private school, apart from the individual contributions made by the principal (president) or teacher in accordance with the provisions of Article 8, Paragraph 4, Subparagraph 1.

If there is solid evidence that a staff member who has been employed for five years or longer has become unable to competently perform his or her duties because of a physical or mental disability, but the person is unwilling to produce a medical certificate verifying treatment by a hospital that meets or exceeds the hospital assessment standards set by the central competent heath authority, then the staff member shall be ordered to obtain medical treatment, after the private school’s supervisory personnel and human resources personnel have reported the matter to the principal (president) and approval has been given. If after two academic semesters the staff member is still unable to competently perform his or her duties or has still not been treated, the school shall take the initiative to carry out the procedures for the staff member’s mandatory retirement.

For retirement purposes, a staff member’s age shall be determined by calculating from the birth date recorded in his or her household registration.
When a principal (president) or teacher retires voluntarily in accordance with the provisions of Article 15, the standard effective date for such retirements will be February 1 or August 1, unless there is some special reason to retire on some other date and the employing school certifies that the retirement will have no adverse effect on teaching.
When age-mandated retirement is imposed on a staff member in accordance with the provisions of Article 16, if the staff member’s birth date falls during the period from August 1 to January 31 of the following year, the effective date of retirement will be no later than February 1 of the following year; if the staff member’s birth date falls during the period from February 1 to July 31, the effective date of retirement will be no later than August 1.
The standards for determination of the “special reason” referred to in Paragraph 2 shall be handled in accordance with the relevant provisions for public schools.

The retirement payment methods are as follows:
1.For service of less than fifteen years: retirement pay shall be paid in a lump sum.
2.For service of fifteen years or longer: the staff member shall choose one of the following payment methods:
(1) a lump-sum payment;
(2) regular periodic payments; or
(3) a combination of a lump-sum plus regular periodic payments. The standards governing the permitted proportion of the lump-sum payment and of the regular periodic payments, for the combination payment method shall be prescribed by the central competent authority.
For a lump-sum payment: the staff member shall receive both the principal and interest in his or her individual Retirement and Compensation Fund account, and the retirement pay payable for his or her years of service before this Act took effect in one lump sum.
For regular periodic payments: using the total amount that the staff member would have received in a lump-sum payment, the staff member shall be enrolled in annuity insurance that is in compliance with the provisions of the Insurance Act, or the Fund Management Committee shall provide an arrangement for the staff member to claim installment payments, to provide the regular periodic retirement pay payments.
For staff members that choose regular the periodic payments provided by the Fund Management Committee referred to in the preceding paragraph: within six months from April 9, 2019, the date of effect of the amendments to articles, the Fund Management Committee shall design a range of investment portfolios with different returns and risks for the staff members to choose from, and the staff member shall assume sole responsibility for the profit/loss resulting from their choice of portfolio. The regulations governing the implementation of the regular periodic payments, the method for claiming the payments, and other relevant matters shall be prescribed by the central competent authority.
When a staff member who chooses regular periodic payments, or a lump-sum plus regular periodic payments retires, he or she may use his or her retirement payment or social insurance benefits, duly received in accordance with the law, to purchase the annuity insurance referred to in the provisions of Paragraph 3 with a lump-sum payment.
In the case of payments made in accordance with the provisions of Paragraph 1, Subparagraph 2, Item (3), each retirement payment shall be calculated based on the ratio between the lump-sum payment and the periodic payments.
As well as being exempt from the requirement of fifteen years of service or longer stipulated in Paragraph 1, Subparagraph 2, to become eligible to receive regular periodic payments, a person who retires because of illness or injury caused as a result of his or her duty shall also receive an additional lump-sum twenty percent payment from the private school in accordance with the lump-sum retirement payment standards of the former private school staff retirement provisions in effect before this Act took effect. If a person’s period of service is less than five years, it shall be deemed to be five years.
The wording “because of illness or injury caused as a result of his or her duty” in the preceding paragraph refers to any illness or injury which has been verified by the employing school as having occurred as a result of any of the circumstances listed below, and for which a medical treatment certificate issued by a hospital that meets or exceeds the hospital assessment standards set by the central competent heath authority has been provided:
1.a hazard occurring while undertaking duties;
2.an accident occurring at the place of work;
3.an accident or hazard encountered while commuting to or from work; or
4.sparing no effort and excessively overworking.
A staff member who retired or received severance pay after this Act came into effect may return the retirement pay or severance pay originally received and arrange to receive installment payments in accordance with the provisions of Paragraphs 3 and 4.

When a staff member who has chosen regular periodic payments or a lump-sum plus regular periodic payments dies, if the annuity insurance in which the deceased was enrolled in accordance with the provisions of Paragraphs 3 and 5 of the preceding article does not provide for continued receipt of payments by his or her survivors, after deducting the total regular periodic payments already received by the deceased, the insurer shall pay the guaranteed amount due to the deceased in accordance with the annuity insurance the deceased was enrolled in, the insurer shall pay the balance, discounted to present value at the stipulated interest rate, to the survivors in a lump-sum.
If the deceased person has no survivors to receive the payment referred to in the preceding paragraph and did not leave a will giving instructions regarding how any such payment was to be used, after using the amount necessary for funeral expenses, the school where the deceased was formerly employed may use the balance exclusively to offer general or special scholarships for students studying there.
The scope, order of entitlement, and proportional entitlements of the survivors referred to in Paragraph 1 shall be in accordance with the provisions of the annuity insurance contract; if the contract does not contain any such provisions, the handling of such matters shall be governed by the provisions of the Civil Code.