Act Governing Retirement, Severance, and Bereavement Compensation Under the Individual Account System for the Teaching and Other Staff of Public Educational Institutions Article 11

The management authority may commission a financial institution or professional institution to handle, fully or in part, the revenue and expenditure, management, and utilization of staff members’ retirement and compensation funds, and their individual accounts. Regulations governing that revenue and expenditure, management, and utilization, the allocation of any surplus or deficit, the scope of and fees for the commission, and other related matters shall be drafted by the management authority and submitted to the central competent authority for review and approval.Staff member retirement and compensation funds are not permitted to be attached, assigned, offset, provided as security, or used for any other purpose, except to make staff member retirement and benefit payments and for investments.The management authority shall design investment portfolios with different returns and risks for staff members to select from or it shall commission a financial institution or professional institution to do so. If a staff member does not select a portfolio, the management authority shall allocate the contributions for that staff member to an appropriate portfolio based on the staff member’s age. The associated implementation regulations shall be drafted by the management authority and submitted to the central competent authority for approval.Before the selection of an investment portfolio referred to in the preceding paragraph is implemented, the cumulative total amounts in the individual accounts shall be uniformly managed and utilized by the management authority.The return on the retirement and compensation funds during the period of their uniform management and utilization referred to in the previous paragraph, and the return on an investment portfolio that the Fund Management Committee has rated as having the lowest level of risk after the selection of investment portfolios is implemented are both not permitted to be lower than the 2-year term deposit rate of local banks. If any shortfall occurs, it shall be made up in full by the National Treasury.