Enforcement Rule of the Privatization of Government-Owned Enterprises Act Article 20

In the case that the settlement and clearance with the Fund are paid with the annual budget, the day prior to the privatization of a government-owned enterprise being the record day of settlement and clearance, the amount settled shall equal the aggregate of expenses paid to the Fund by the government-owned enterprises or their employees which is offset by the aggregate of expenses related to pension and posthumous relief payments paid by the agency managing the Fund, both of the aggregates of expenses calculated at the compound annual average interest rate calculated according to the average of each month's first interest rate of two-year time deposit posted by Bank of Taiwan before set-off, then the remaining minus the aggregate of expenses paid to the Fund for the employees of government-owned enterprises who have resigned or transferred to other agencies before privatization. If the amount settled is positive, the agency managing the Fund in charge of the settlement and clearance shall pay the said amount in one lump sum to the government-owned enterprises; if the amount is negative, the government-owned enterprises pay the balance to the Fund. If the government-owned enterprises are not able to pay the balance according to the result of settlement and clearance, the government shall pay the amount.Compound interest shall be accrued on the amount that is not paid pursuant to the preceding paragraph at the interest rate provided in the preceding paragraph until the amount is completely paid.After settlement and clearance by the agency managing the Fund, the government shall continue to bear relevant fees and expenses of various payments to be paid in the future by the employees who received various pensions or posthumous relief payments before privatization of the government-owned enterprises, and prepare each year's relevant budgets for the above fees and expenses and appropriate to the account of the agency managing the Fund, which shall pay the employees of the government-owned enterprises according to the laws and regulations.