Chapter Ⅳ Annuity Insurance
A business entity with over 200 workers may, with the consent of a labor union or with the approval of labor-management conference when no labor union exists, insure with the Annuities Insurance pursuant to the Insurance Act for workers who choose in writing to insure with the Annuities Insurance.
In the case of workers choosing to insure with the Annuities Insurance of the preceding paragraph, the employer is not required to contribute to labor pensions in accordance with Article 6, Paragraph 1.
Regulations concerning revenues, expenditures, approval and other related matters of compliance of the Annuities Insurance referred to in Paragraph 1 shall be prescribed by the central competent authority. Business entities adopting the Annuities Insurance referred to in the preceding paragraph shall file with the central competent authority for approval.
The average return rate of Annuities Insurance referred to in Paragraph 1 shall not be less than the rate prescribed in Article 23.
The insurer shall, in accordance with insurance laws and regulations, set up a designated account to record the value of their investment assets.
Upon death of a worker who has no designated beneficiary(ies) or survivor(s), the principal and accumulated returns of their pension payment of Annuities Insurance shall be subsumed as assets of the designated account for Annuities Insurance.
Workers who are covered by this Act working in business entities that implement the Annuities Insurance scheme may, at the limit of one time per year, change their original applicable pension mechanism to their individual pension account or Annuities Insurance scheme. The pension or premium of annuity insurance already contributed or paid shall be continuously reserved. The employer concerned shall file the appropriate application form with the Bureau and the insurer within fifteen days from the date a worker declares in writing their decision to switch pension payment mechanisms.
The premium per month by an employer provided to the Annuities Insurance program may not be less than six percent of a worker's monthly wage.
The insurer shall prepare and mail a payment statement listing the amount of premium the employer shall pay and the amount provided by a worker who voluntarily pays, as described in the preceding paragraph, to the business entity prior to the 25th day of the following month, and the employer shall pay prior to the end of the next calendar month, after the month in which they receive the payment statement. Prior to the seventh day of the month that follows the payment due date, the insurer shall inform the Bureau of the situation of premium collection notifying the Bureau of the amount an employer should have paid.
Workers who voluntarily pay the premium to their Annuities Insurance plan, shall have the premium collected by their employers along with the portion paid by their employers to the insurer. Payment shall be made from the filing date of voluntary payment to the date of resignation or the filing date of termination.
If an employer fails to pay within a given period or makes insufficient payment, the insurer shall immediately collect the overdue receivables and within a given period notify the employer of the amount to be paid prior to the end of month following the original payment due date. A report on overdue receivables shall then be delivered to the Bureau prior to the seventh day of the next calendar month.
An employer shall be the proposer of an Annuity Insurance contract, and an employee shall be the insured and the beneficiary. A business entity can only purchase annuity insurance from a single insurer. Qualifications of the insurer shall be jointly prescribed by the central competent authority and the insurance authority.
When a worker has resigned and becomes re-employed, the new employer shall be their proposer of the Annuities Insurance contract and shall continue to pay the premium. When the contribution rate to the Annuities Insurance premium born by the new employer and the previous employer is not the same, the worker shall be responsible for the difference. However, the foresaid provision shall not apply if the new employer is willing to pay the difference.
If the new employer of the worker referred to in the preceding paragraph does not purchase the Annuities Insurance, they shall contribute to the labor pension account according to Article 6, Paragraph 1. Unless a separate agreement between the employer and the worker is made, the worker shall be responsible for the full amount of the premium of the Annuities Insurance plan. When the worker cannot pay the premium, the continuity of the Annuities Insurance contract shall be dealt with in accordance with the Insurance Act and the foresaid insurance contract.
When a worker referred to in Paragraph 1 has resigned and becomes re-employed, they may choose to have the new employer contribute to their labor pension account in accordance with Article 6, Paragraph 1.
When a worker is covered by different pension mechanisms after resigning and gaining re-employment, and if they choose to transfer the reserved policy value of the Annuities Insurance to their individual pension account or transfer the principal and accumulated returns in their individual pension account to Annuities Insurance plan, the full amount shall be transferred. The period for depositing pension funds that they have contributed shall not be less than four years.
Articles 7 to 13, Paragraphs 2 to 5 to Article 14, Article 15, Article 16, Article 20, Article 21, Article 24, Article 24-1, Article 24-2, Paragraph 1 and Paragraph 2 to Article 27, and Articles 29 to 31 shall apply, mutatis mutandis, to the Annuities Insurance program prescribed in this Chapter.