At present, the labor insurance system designed in Taiwan offers retired labors to receive their pensions from two systems: labor insurance and labor pension when they retire. However, such fund investments, which met the international financial turmoil and the sluggish domestic economy, have experienced investment risks and fund losses. Therefore, when the government faces the expending financial gap of the labor pension funds, which may affect the national financial crisis, the government needs immediately to conduct a comprehensive review and reform the pension system.
The purpose of this paper is to propose possible solutions to amend and improve the imperfect content of the labor pension system in Taiwan. The dissertation includes the analysis of the historical evolution of the labor pension system and the background changes of the institutional era, and the types of pension account operations. In addition, it also covers, the pay-as-you-go system, the fully-paid-ready system and the partial deposit-ready system, the definite dialing system, the nominal account system and other types of pension plans in the connotation of the system.
From1980s to the present, a couple of oil crises, two subprime mortgage crises in the USA and European debt crisis triggered off the economic recession, the international financial crisis, and serious losses of fund investments. In order to avoid the financial bankruptcy of the funds, every country in the world has completed the amendment of retirement pension systems. This study aimed to explor the reform strategies from such developed countries as: the United States, Japan, Germany, Britain, France, South Korea, Sweden, Hong Kong and Singapore. It, furthermore, compared the differences between Taiwan and these developed countries and would adopt their valuable experiences as references. Moreover, it would provide feasible solutions and suggestions after reviewing the pension reforms in different periods over these years in Taiwan, and analyzing and comparing the imbalances between the incomes and expenditures of the labor pension funds in recent years.
Finally, the findings of this research indicated that the management mechanism of pension funds should be legalized by government administrative efficiency in order to promote the returns on investments by strengthening the fund management of professional fund managers from the top of sources. With reference to the "automatic joining" mechanism in the UK, the successfully expanded rate of workers volunteering for modifying the retirement pension scheme has ultimately raised the willingness of paying and establish a stable income for their retirement pension funds. The objective of pension reform is to better and improve the current system so that it can become sustainable for the purposes of ensuring the life security and economic support to those elderly workers after their retirement, and avoiding the serious problem of generation antagonism. In time, at least for one generation, there is no lack or worry of the payment of pensions.
Keywords：labor insurance system, subprime mortgage crises in the USA, European debt crisis, returns on investments