Labor Minister Chen Hsiung-wen says that Taiwan’s pension system must be reformed within two to three years or it could face bankruptcy by 2027.
Chen was addressing the Legislature’s Social Welfare and Environmental Hygiene Committee on Wednesday. He said that without reform, the pension system could be paying out more than it takes in by 2019.
Chen said that the Labor Ministry submitted a package of reform proposals to the Legislature in 2013. But he said that the ruling and opposition parties never resolved their differences of opinion on the proposals. He said that the need to deal with pensions for public servants and military personnel together with the regular pension system complicates matters further.
Chen said he hopes the incoming government can avoid financial troubles by reforming the system within two to three years.