Regulations for Revenues, Expenditures, Safeguard and Utilization of the Labor Retirement Fund Article 10

With regard to utilization of the Fund, the minimum earnings in the annual distributions on the final financial statement shall not be less than the earnings attainable from the amounts accrued from two-year time deposits with the interest rates offered by local banks.When the gain from Fund utilization minus the final valued unrealized gains from investment and after making up accumulated shortfalls for the previous two years exceeds earnings calculated using the two-year time deposits interest rate offered by local banks, one half of the surplus shall be fully distributed within three months after the issuance of annual final financial statement; however, the distribution shall be restricted to the unsettled reverse accounts of the Fund at the time of distribution. All income from Fund investment remaining after distribution shall be stated as accumulated surplus.If total realized gains within the stated accumulated surplus exceeds six percent of the net value of the Fund at the end of December of that year, it shall be fully distributed within three months after the issuance of the annual final financial statement.With regard to the utilization income in Paragraph 2, the final valued unrealized price fall losses from investment in stocks and beneficiary certificates shall be subtracted, and the minimum earnings from the Fund utilization then calculated. If the foregoing minimum earnings are less than earnings calculated using the two-year time deposits interest rate offered by local banks, the deficit shall be covered by the accumulated surplus. If the surplus is inadequate to cover the deficit, it can be covered by the surplus of the next year. However, the duration for this type of coverage is only limited to two years. In case that the deficit is still inadequate to cover the surplus, Treasury Funds can be used to cover the deficits after the approval of the competent authority.