Act of Military Service for Officers and Non-commissioned Officers of the Armed Forces Article 29

Unless it is otherwise stipulated in the Act, the Retirement Severance Pay for Officers and Non-commissioned Officers after the implementation of new pension system shall be paid out from a pension fund established with joint contributions from government and Active Service personnel (hereinafter referred to as the “Pension Fund); if the Pension Fund is insufficient, the government will review and adjust the contribution rate in view of national fiscal condition, and take ultimate payment responsibility.The base contribution to the Pension Fund in the preceding paragraph shall be at a rate of 12% to 18% of twice the base pay of the Active Service personnel, of which the government shall contribute 65% and active service personnel shall contribute 35%. Contributions paid to the Pension Fund shall be excluded in the computation of annual taxable salary income.The actual contribution rate for the Pension Fund provided in the preceding paragraph shall be jointly set and announced by the Executive Yuan in conjunction with the Examination Yuan based on the periodic actuarial results of the Pension Fund. If the optimal contribution rate based on the actuarial results is more than 1.5 times the amount in current actual contribution rate, the Executive Yuan, in conjunction with the Examination Yuan, shall increase the contribution rate by at least 1% within three months.The period of approved leave without pay will not be aggregated into years of service and is exempted from contribution in Paragraph 2. However, those who are on parental leave without pay must make full contribution to the Pension Fund in order for the period of leave to be included in the calculation of retirement severance pay and years of service. However the aforementioned period of leave cannot be counted toward the qualification of receiving pension after 20 years of service.The years of service during which contributions are not made to the Pension Fund as required, and the years of service for which principal and interest of Pension Fund contributions are refunded in one lump sum upon application or for which retirement severance pay was once approved and paid cannot be aggregated into total years of service.When Officers or Non-commissioned Officers are discharged from service, previous Pension Fund contributions the Officer or the Non-commissioned Officer has made but were not aggregated into years of service based on which retirement severance pay is calculated shall be refunded to the Officer or the Non-commissioned Officer, with the interest, in one lump sum. Such refund shall be calculated based on the ratio of un-aggregated years of service after the implementation of new pension system to total years of service for which contributions were paid, and paid in one lump sum by the Pension Fund.Officers or Non-commissioned Officers who are not eligible for retirement severance pay may apply for a refund in one lump sum of contributions already made to the Pension Fund, with the interest; except for Officers or Non-commissioned Officers who are retired or discharged but are denied retirement severance pay according to law, for those who have paid Pension Fund contributions for three years or longer may apply at the same time for the refund of Pension Fund contributions made by government in one lump sum, with the interest. The statute of limitation therefor shall be governed by Paragraph 1 of Article 50 herein.The provisions of the preceding paragraph regarding refund of Pension Fund contributions with interest do not apply to years of service after the implementation of new pension system for which an Officer or Non-commissioned Officer has undergone settlement of years of service, retirement or severance in accordance with the Statute of Privatization of Government-Owned Enterprises or other retirement and severance laws and regulations.For Officers who have once served as a Non-commissioned Officer or Soldier, or Non-commissioned Officers who have once served as a Soldier, or Officers or Non-commissioned Officers who have been discharged to perform special tasks due to national security needs, or Officers or Non-commissioned Officers who study in a military academy after the implementation of the new pension system, those periods may be aggregated into years for service for the calculation of retirement severance pay, provided the Officer applies to his or her service agency for supplementary payment of Pension Fund contributions based on his or her daily salary rank on the date of first taking up the position, and the service agency forwards the application to the Pension Fund management institution for it to pay its share of contribution based on the contribution ratio set forth in Paragraph 2 hereof, and the supplementary contribution is paid in one lump sum within three months after the implementation of this Article of the Act amended and promulgated on June 21, 2018. Officers whose supplementary payment is overdue shall pay interest thereon. For Officers who first take up officer position after the implementation of this Article of the Act amended and promulgated on June 21, 2018 shall pay up supplementary contributions within three months from the date of first taking up the position.For Officers who have retired and are receiving retirement severance pay before the implementation of this Article of the Act amended and promulgated on June 21, 2018, they shall pay their share of supplementary contributions in one lump sum according to the contribution ratio set forth in Paragraph 2 hereof within one year from the date of receiving a notice from the original agency. After the payment is made, the supplementary contributions will be aggregated into years of service for the calculation of retirement severance pay, which will then be adjusted starting from the following term. However for Officers who are eligible for pension or maintenance allowance after combining years of studying in a military academy, but did not make supplementary contributions in a timely manner, Article 36 herein shall apply.The utilization and delegated operations of the Pension Fund shall be undertaken by an agency specifically responsible for that purpose. That agency shall make professional investments and provide quarterly public disclosures regarding the income and expenditure, and utilization of the Pension Fund.Unless it is otherwise stipulated in this Act, the Act Governing the Management of Public Service Pension Fund and related provisions shall apply mutatis mutandis to income and expenditure, management, and utilization related matters of the Pension Fund and the nature of the specifically responsible agency set forth in this Act.