The number of people enrolled in Taiwan's public pension insurance program has been declining because many people cannot afford or do not want to pay insurance premiums and because of lack of knowledge of the program and its benefits, "Minister of the Interior" Jiang Yi-huah said yesterday.

As of November 2009, the number of insured had dropped by about 160,000 to 4.06 million from 4.22 million recorded at the end of 2008, Jiang said during a legislative session.

Meanwhile, the scale of the public pension fund reached NT$65.8 billion, with a total of NT$19.2 billion claimed from the fund, according to the minister.

In response to opposition Democratic Progressive Party Legislator Huang Sue-ying's concerns that the dwindling number of insured might cause the collapse of the program, Jiang said his office will strengthen its efforts in promoting the scheme and its advantages and provide more convenient premium payment options to the insured.

Huang also pointed out that the MOI has commissioned the Bureau of Labor Insurance to manage the public pension fund, but the fund's rate of return on investment (ROI) is only 1.51 percent, far lower than the new labor pension plan fund's rate of 12.95 percent and the old labor pension plan fund's 15.4 percent.

The public pension system was put into effect on October 1, 2008 and is open to anyone with a household registration in Taiwan aged between 25 and 65 who is not covered by other social welfare insurance plans, such as farmer's health insurance, government employee insurance, insurance for military personnel or labor insurance.

Those insured must pay 60 percent of the premium, while the government will pay the remaining 40 percent.

Under the regulations, an insured person who pays a monthly premium of NT$674 for 40 years will receive NT$8,986 every month from the age of 65 - the standard retirement age - until death.

China Daily/CNA

(HK Edition 03/12/2010 page8)