New Labor Pension System: 22 People Switch to Lump-Sum Payment During 30-Day Grace Period

The Labor Pension Act now allows those choosing monthly pension payments to switch to a lump-sum payment within a 30-day grace period after the first deposit. According to statistics, in the month since the new system was implemented, 22 people have applied to switch to a lump-sum payment, totaling NT$36.88 million. During the Ministry of Labor's routine business report, Huang Wei-chen, Director of the Department of Labor Welfare and Retirement, stated that the amendments to the enforcement rules of the Labor Pension Act, which took effect on March 25, introduced several new measures. These include the right for monthly pension recipients to switch to a lump-sum payment during the grace period, and the expansion of the 'non-assignable, non-offsettable, and non-seizable' protection for pension rights for survivors and designated beneficiaries. Huang noted that although the new system has been in place for just over a month, it has already shown clear results, with 22 cases of switching to lump-sum payments. Furthermore, following the expansion of protection against seizure, courts have proactively revoked 517 execution orders and returned seized pension funds, ensuring that survivors' pensions are not immediately seized due to debt disputes when a family member passes away. Huang reminded that the new system also establishes the employer's obligation to collect voluntary pension contributions from employees, which will take effect on August 1. Employers cannot refuse if an employee applies for voluntary contributions. If an employer refuses, the employee can report directly to the Bureau of Labor Insurance to start voluntary contributions. Employers who fail to pay by the deadline will be subject to late fees.