Ministry of Civil Service: Recalculated Pension Determination Amount Correct; Actual Payments Adjusted per Scheme

(Central News Agency reporter Kao Hua-chien, Taipei, June 16) The Ministry of Civil Service has recently begun mailing out 'new version pension determination notices' following amendments to pension reform legislation. However, some retired civil servants have reported that inflation-adjusted amounts were not included. The Ministry clarified that the 'determination amount' listed in the re-evaluation decision annex is fixed and unchanging. The 'actual payment amount,' however, will be accurately disbursed monthly by payment agencies according to each retiree’s applicable adjustment scheme. Retirees are urged to rest assured.

In December last year, the Legislative Yuan passed third-reading amendments to parts of the Civil Servants Retirement, Displacement, and Pension Act, halting pension cuts for civil servants starting in 2024 (Minguo Year 113). The Ministry recently announced that the pension payment differences due from December 28 last year to July 31 this year will be fully back-paid by August 1 this year at the latest. Re-evaluation decisions and income annexes have already been delivered to retirees via respective payment agencies.

Media reports indicate that many retired public school teachers and civil servants have expressed concerns that the two previous inflation-based adjustments were not reflected in their notices.

The Ministry clarified today that the monthly retirement income amounts listed in the re-evaluation annex for retired civil servants are legally calculated using statutory formulas and have never included the 'actual payment amounts' derived from pension adjustment schemes. The 'determination amount' serves as a fixed baseline for future adjustment calculations and therefore remains constant.

Thus, the Ministry emphasized, the 'determination amount' in the re-evaluation notice is correct. The 'actual payment amount' will be automatically calculated by information systems based on the applicable adjustment scheme and accurately disbursed monthly by payment agencies. Retirees are reassured that their payments are correct.

The Ministry noted that this action aligns with amendments to Articles 37 and 38 of the Pension Act, restoring the retirement income replacement rate based on the period from January 1, 2023 (Minguo 112) to December 31, 2023. Except for those retiring on or after January 1, 2024, individuals who retired before December 31, 2023, will have their 'determination amounts' restored to the levels listed in their original determination notices for the period January 1 to December 31, 2023. As such, these amounts naturally exclude the 'actual payment amounts' calculated under adjustment schemes.

To ensure retirees understand this rule, the Ministry stated that it has been clearly indicated in Note 1 of each re-evaluation annex and in Circular No. 1155968007, Department of Retirement Affairs, issued on June 8, 2026 (Minguo 115). The 'actual payment amount' of a retiree’s pension shall be based on the listed 'determination amount' and further adjusted according to officially announced schemes: a 2% increase effective July 1, 2022 (Minguo 111), and a 4% increase effective January 1, 2024 (Minguo 113), applied based on the retiree’s applicable adjustment rate.

Technically, the adjusted amounts will be automatically calculated by information systems and sent to payment agencies for accurate monthly disbursement, eliminating the need for retirees to calculate manually.

Regarding specific calculation methods, the Ministry explained that retirees whose retirement became effective before June 30, 2022 (Minguo 111), having undergone two adjustments, will have their actual payment amount calculated by first increasing the listed determination amount by 2%, then by 4%. For example, if the determination amount is NT$50,000, the actual payment amount will be NT$53,040 (50,000 × 1.02 × 1.04).

For those whose retirement became effective between July 1, 2022, and December 31, 2023, having experienced only one adjustment, the actual payment amount will be calculated by increasing the determination amount by 4%. For example, if the determination amount is NT$52,000, the actual payment amount will be NT$54,080 (52,000 × 1.04).

For those retiring on or after January 1, 2024, no adjustment has yet been applied, so the actual payment amount equals the listed determination amount. (Editor: Su Lung-chi) 1150616