Taiwan's Ministry of Civil Service: Pension Cuts to Halt from End of 2025, Back Pay to Be Issued by August 1

(Central News Agency, reporter Gao Huaqian, Taipei, 10th) The Legislative Yuan passed the bill to halt pension cuts for civil servants and teachers in its third reading last December. The Ministry of Civil Service stated that the Pension Act does not specify a retroactive period, so the relevant provisions take effect from the date of promulgation, December 28. The difference for the period from December 28, 2024, to July 31, 2025, will be paid retroactively by August 1, 2025, at the latest. Furthermore, starting August 1, 2025, monthly payments will be unified based on the results of the re-evaluation decision.

Last December, the Legislative Yuan passed amendments to the Civil Servants Retirement and Severance Act, halting pension cuts for civil servants from 2024 (Republic of China year 113). It also stipulated that monthly pension payments after retirement should be adjusted according to the cumulative growth rate of the Consumer Price Index (CPI) when it reaches 5%. The Ministry of Civil Service stated at the time that the income replacement rates for nearly 180,000 retired civil servants would need to be re-evaluated, a process expected to take about six months.

According to a recent official document from the Ministry of Civil Service, the income replacement rates, monthly retirement income, and monthly pension payments for retired civil servants for the period "after" December 28, 2024, must all be handled according to the amended Pension Act.

The Ministry stated that starting August 1, 2025, monthly retirement (severance) payments for retirees will be made based on the results of the re-evaluation decision. The difference for the period from December 28, 2024, to July 31, 2025, will be paid retroactively by August 1, 2025, at the latest.

The Ministry explained that the pension payments and retroactive differences will be funded by the budgets of central and local government agencies and the pension fund, based on the years of service before and after the implementation of the new pension system, as stipulated in Article 68 of the Pension Act.

The Ministry stated that the monthly retirement income amount after re-evaluation will be deposited into the National Civil Servants and Teachers Retirement and Survivor Benefits Integration Platform under the Directorate-General of Personnel Administration, Executive Yuan. The actual amount paid will be adjusted according to the adjustment ratios applicable to the retiree, based on the adjustment plan already announced by the Examination Yuan in consultation with the Executive Yuan, effective July 1, 2022, and January 1, 2024, as stipulated in Article 67 of the Pension Act.

Furthermore, Kuomintang Legislator Weng Xiaoling criticized the Ministry of Civil Service for being half-hearted, accusing it of arbitrarily misinterpreting Articles 37 and 38 of the Civil Servants and Teachers Retirement Regulations. She claimed the Ministry only agreed to refund the excess pension deductions from after the law's promulgation (December 28, 2025) to July 2026, but refused to refund the excess deductions for the 24 months of 2024 and 2025.

The Ministry of Civil Service responded that, according to Article 13 of the Central Regulation Standard Act and Article 95 of the Pension Act, the amended Articles 37 and 38 of the Pension Act contain no explicit retroactive provisions, and therefore naturally take effect from the date of promulgation. The Ministry stated it is acting in accordance with this legal procedure and respects Legislator Weng's view that there is a retroactive provision. (Editor: Wan Shuzhang) 1150610