Labor Standards Act Article 56

(Ⅰ)Employers shall appropriate labor pension reserve funds ranging between 2% and 15% of the total monthly wages of their employees and deposit such amount in a designated account. The funds in said account may not be used as an assignment, attachment, offset or security object. The central competent authority shall establish regulations on the proportion, procedure and management of the funds to be appropriated and present them to the Executive Yuan for approval.(Ⅱ)Before the end of each year, employers shall assess the balance in the designated labor pension reserve funds account of the preceding Paragraph. If the amount is inadequate to pay pensions calculated according to the preceding Article for workers retiring in the same year according to Article 53 or Subparagraph 1 of Paragraph 1 of Article 54, the employer is required to make up the difference in one appropriation before the end of March the following year and submit the statement to the Business Entity Supervisory Committee of Labor Retirement Reserve for review.(Ⅲ)The central competent authority shall set up the Labor Pension Fund Supervisory Committee to manage the Labor Pension Fund composed of the monthly appropriated labor pension reserve funds of Paragraph 1. The central competent authority shall also define the organization of said committee, its meeting procedures and regulations on related matters.(Ⅳ)The central competent authority shall coordinate with the Ministry of Finance to commission a financial institution to be in charge of the collection and spending, custody and utilization of the Fund specified in the preceding Paragraph. The minimum earnings from the Fund may not be less than the two-year-term time deposit interest offered by local banks; in the event of a deficit, it shall be covered by the national treasury. The central competent authority shall establish the regulations regarding the collection and spending, custody and utilization of the Fund and present them to the Executive Yuan for approval.(V)The supervision of labor pension reserve funds appropriated by employers shall be supervised by the Supervisory Committee of Labor Retirement Reserve composed of representatives for workers and employers. Worker representatives on the committee may not be less than two thirds of the members in the committee; the central competent authority shall establish the regulations for the organization of the committee.(VI)The decision or adjustment of the proportion of labor pension reserve funds to be appropriated each month by employers must be reviewed and approved by their Business Entity Supervisory Committee of Labor Retirement Reserve and presented to the local competent authority for approval.(VII)When processing loan applications from businesses that require the investigation of the labor retirement reserve appropriation of such business entity, financial institutions may request the local competent authority to provide such data.(VIII)Financial institutions acquiring the data of the preceding Paragraph are obliged to keep the data confidential and to also make certain that related data safety audits are conducted.(IX)The central competent authority shall consult with the Financial Supervisory Commission to establish regulations regarding the content and range of the data of the two preceding Paragraphs as well as the application procedure and other rules to follow.