Enforcement Rules of the Labor Pension Act Article 21-3

A worker who voluntarily contributes to labor pension pursuant to Paragraph 1 of the preceding article and meets the retirement requirements set forth in Article 53 or 54 of the Labor Standards Act may, by mutual agreement with the employer during the continuing period of a labor contract, settle the pension accrued for the worker’s years of service governed by the Labor Standards Act.The settlement by mutual agreement referred to in the preceding paragraph shall be made in writing. The written agreement shall specify the years of service being settled, the settlement amount, the settlement date, and other related matters, and shall be personally signed by the worker. The agreement shall be executed in duplicate, with the employer and the worker each retaining one copy.The employer shall retain the written records relating to the pension settlement until five years after the date on which the worker leaves employment.The payment standard for a pension settled by mutual agreement pursuant to Paragraph 1 shall be calculated in accordance with Articles 55 and 84-2 of the Labor Standards Act. For purposes of calculating the average wage used as the pension base, the date on which the years of service are settled shall be deemed the date on which the relevant event occurs.A pension settled by mutual agreement between the employer and the worker pursuant to Paragraph 1 may be paid from the designated labor retirement reserve fund account prescribed in Paragraph 1 of Article 56 of the Labor Standards Act. The full amount of the settled pension shall be transferred directly from the Bank of Taiwan Co., Ltd. to the worker’s individual labor pension account maintained by the Bureau of Labor Insurance.Where a worker’s pension is transferred pursuant to the preceding paragraph, the method for calculating the worker’s years of service shall apply mutatis mutandis to Paragraph 2 of Article 12.