With the growth of the elderly population, the retirement plan, has become an important issue of public policy discussions. In Addition, media made a long harangue about the bankruptcy of labor insurance, retirement and relief funds, all being symptoms of aggravating problem with government finances. Therefore the Executive Yuan in the year of 101 has established " the pension reform group ". The reform concerns military and public servants, educators, as well as labor annuities. Civil servant annuities are the benchmark of the whole program.
For that reason this paper applies a literature review and in-depth interviews as its methods. First method will provide more information about history of our <Civil Service Retirement Act> and developed countries` retirement systems. The second method, though interviewing public servants, retirement people and experts in the area, will enable collecting data about attitudes toward their work and facilitate empirical analysis. Also the emphasis will be put on the content of the draft from Ministry of Civil Service on public service pensions.
Consequently, according to the retirement system and the interview results, this paper will provide some advices for the administration, government employees and researchers focused on this subject, as follows:
1. The pension management could be oriented toward the Public Corporation and introduce the spirit of private enterprise to enhance the fund operation flexibility and performance.
2. In order to attract the professional financial management, we have to improve working enironment and formulate a motivating incentive system.
3. Pension calculation and establishing the maximum treshold must avoid using the retrospective method and preserve the principle of Legitimate expectation in order to prevent legal instability.
4. Expanded scope of retirement income replacement ratio.
5. Redefined the retirement income replacement ratio, includes the annual bonus, performance bonus and supervisory differential pay.
6. Public Service Pension Fund self-payment part could be applied to the tax concession.
7. Shortening the transition of monthly pension initiation payable age.
8. Reinforcing the first-level annuities guarantee, gradually raising the benefit maximum.
9. Deferred Public Employee Insurance payable age, should be synchronized with the Retirement Found payable age.
10. Reducing the age limit for applying the Monthly Relief Payment and Subsidies, and determining the paid amount by the lenght of service.
11. Gradually lowering the Retirement pension calculation standards.
12. Balancing the payment obligation and the right of benefit. Unit of Radix still maintains double of basic pay, or return the fund from the part of benefits` differences.