History

This Act is enacted for the purposes of enhancing the protection of employees'
lives after retirement, strengthening the relationships between employees and
employers and promoting social and economic development.

This Act supercedes other laws and regulations with respect to labor pensions.
Matters not provided herein shall be governed by other laws.

For the purpose of this Act, the term "competent authorities" shall refer to the
Council of Labor Affairs, Executive Yuan at the central government level,
municipal city governments at the municipal city level, and county/city
governments at the county/city level.

The terms "employee," "employer," "business entity," "labor contract," "wage,"
and "average wage" referred to in this Act shall have the same meanings as those
defined in Article 2 of the Labor Standards Law.

The central competent authorities shall establish the Labor Pension Fund
Supervisory Committee (hereafter referred to as the "Supervisory Committee") to
review, supervise, and audit all matters related to the Labor Pension Fund and
to implement the annuity insurance scheme under this Act.

The Supervisory Committee shall exercise its authority independently. Its
organization, meetings, and other relevant matters shall be prescribed by other
laws.

After the establishment of the Supervisory Committee, the management of the
Labor Pension Fund as established in accordance with Paragraph 2, Article 56 of
the Labor Standards Law shall be coordinated and handled by the Supervisory
Committee.

After the promulgation of this Act, the central competent authorities shall
engage the Bureau of Labor Insurance to take charge of the collection, payment,
and custody of the Labor Pension Fund, the imposition of delay penalties and
fines, and the compulsory execution thereof.

Employers shall contribute on a monthly basis to the Labor Pension Fund by
contributing into the individual pension fund accounts at the Bureau of Labor
Insurance for those employees who are subject to this Act.

Unless otherwise provided under this Act, an employer shall not create its own
labor pension fund contribution mechanism to replace the labor pension fund
contribution mechanism set forth in the preceding paragraph.

All domestic employees who are subject to the Labor Standards Law shall be
subject to this Act, excluding those employees whose pension funds shall be set
aside in accordance with the Private School Law.

Employers who actually perform labor work, domestic employees who are not
subject to the Labor Standards Law, and have obtained their employers' consent
to contribute to the pension funds for them, and commissioned managers may
voluntarily make contributions and claim for pension fund payments in accordance
with this Act.

Those employees who were subject to the Labor Standards Law prior to the
enforcement of this Act and still work for the same business entity after the
enforcement of this Act may choose to remain to be subject to the pension
mechanism under the Labor Standards Law; provided, however, that, if they leave
their current employer and are re-employed, they shall then be subject to the
pension mechanism under this Act.

A civil servant who is concurrently an employee and continuously works for an
entity that was a government-owned enterprise but is privatized after the
enforcement of this Act may choose to be subject to the pension mechanism under
the Labor Standards Law or the pension mechanism under this Act.

Within the period from the promulgation of this Act to one day prior to the
enforcement of this Act, employers shall inquire their employees in writing with
respect to their choices between the pension mechanism under this Act or that
under the Labor Standards Law. Those employees who have not made a specific
choice by the expiration of the prescribed period shall remain to be subject to
the pension mechanism under the Labor Standards Law as of the date of
enforcement of this Act.

Those employees who choose to remain to be subject to the pension mechanism
under the Labor Standards Law may choose to be subject to the pension mechanism
under this Act within five years therefrom.

Regarding the contributions to the Labor Pension Fund, employers shall apply
with the Bureau of Labor Insurance for those employees who are subject to the
pension mechanism under this Act in accordance with the following provisions:

1. For those employees who choose to be subject to the pension mechanism
under this Act in accordance with Paragraph 1 of this Article, the application
shall be filed within 15 days from the date of enforcement of this Act.
2. For those employees who choose to be subject to the pension mechanism
under this Act in accordance with Paragraph 2 of this Article, the application
shall be filed within 15 days from the date of choosing.
3. For those business entities incorporated after the enforcement of this
Act, the application shall be filed within 15 days from its incorporation.

Once an employee becomes subject to the pension mechanism under this Act, he/she
shall not choose to be subject to the pension mechanism under the Labor
Standards Law.

For those employees who were subject to the Labor Standards Law prior to the
enforcement of this Act and still work for the same business entity after the
enforcement of this Act, if they choose to be subject to the pension mechanism
under this Act, their seniority prior to the enforcement of this Act shall be
maintained.

When a labor contract is terminated in accordance with Article 11, the
conditional proviso of Article 13, Article 14, Article 20, Article 53 and
Article 54 of the Labor Standards Law or Article 23 and Article 24 of the
Occupational Accident Labor Protection Act, an employer shall pay the severance
pay or pension fund based on the maintained seniority referred to in the
preceding paragraph and the average wage at the time of the termination of the
labor contract in accordance with the relevant laws. The payment shall be made
within 30 days from the termination of the labor contract.

During the term of a labor contract, the employer and the employee may agree to
cash out the employee's maintained seniority as referred to in Paragraph 1 of
this Article based on such payment terms which shall not be less favorable to
the employee than those under Article 55 or Article 84-2 of the Labor Standards
Law.

Upon the date of privatization of a government-owned enterprise, the civil
servants of the government-owned enterprise who are also employees shall claim
payments which accrued prior to the privatization in accordance with the
applicable laws and regulations governing pensions prior to the privatization.
For those remaining employees, the right to receive monthly pension payments and
the related benefits shall be suspended until they leave the privatized
enterprise.

For those employees who are subject to the pension mechanism under this Act,
when their labor contracts are terminated in accordance with Article 11, the
conditional proviso of Article 13, Article 14 and Article 20 of the Labor
Standards Law or Article 23 and Article 24 of the Occupational Accident Labor
Protection Law, their employers shall make severance pay which is calculated at
half monthly average wage for each year of service after the enforcement of this
Act. The severance pay for a period of service of less than one year shall be
calculated proportionately. The total severance pay shall not exceed six
monthly average wages. Article 17 of the Labor Standards Law shall not apply.

The severance pay calculated based on the preceding paragraph shall be paid
within 30 days after the termination of the labor contracts.

For those employees who choose to be subject to the pension mechanism under the
Labor Standards Law, their severance pay shall be calculated in accordance with
Article 17 of the Labor Standards Law.

For the protection of employees' pension, employers shall calculate the
percentage at which pension fund shall be set aside according to the number,
wages, seniority and turnover rate of those employees who choose to be subject
to the pension mechanism under the Labor Standards Law and those employees whose
seniority prior to the applicability of this Act to them has been maintained.
Employers shall continue to set aside pension funds each month in accordance
with Paragraph 1, Article 56 of the Labor Standards Law for five years to the
extent that such funds are sufficient to cover the employees' pension.

The payment to cash out the maintained seniority by an agreement between an
employer and an employee in accordance with Paragraph 3, Article 11 of this Act,
may be made from the pension reserve fund account established in accordance with
Paragraph 1, Article 56 of the Labor Standards Law.

With respect to the pensions paid to the employees in accordance with Paragraph
4, Article 11 of this Act, Article 9 of the Government-Owned Enterprise
Privatization Act shall apply to such pensions.

The rate of contribution by an employer to the Labor Pension Fund per month
shall not be less than 6% of the employee's monthly wages.

The "Table of Monthly Wages and Contribution Rates" referred to in the preceding
paragraph of this Articles where shall be set forth by the central competent
authorities and approved by the Executive Yuan.

An employee may voluntarily contribute per month, up to 6% of his/her monthly
wages to his/her pension fund account. The full amount of the voluntary pension
contribution made by an employee may be deducted from the employee's taxable
income in the year concerned.

The preceding Paragraphs 1, 2, and 3 of this Article are applicable to those
persons who voluntarily contribute to their pension fund accounts in accordance
with Paragraph 2, Article 7 of this Act.

The adjustment of the rate of contribution to the Labor Pension Fund of an
employee hired by the same employer or an employee who voluntarily contributes
to his/her pension fund account in accordance with Paragraph 2, Article 7, or
Paragraph 3, Article 14 of this Act shall not be made more than twice a year.
Upon an adjustment, the employer shall fill out a contribution rate adjustment
form and notify the same to the Bureau of Labor Insurance prior to the end of
the month in which the adjustment is made. The adjustment shall take effect on
the first day of the month following such notification.

If the adjustment of an employee's wages is made between February and July of
the year, the employer or the business entity concerned shall notify the Bureau
of Labor Insurance of the adjusted monthly contribution prior to the end of
August of the same year. If the adjustment of an employee's wages is made
between August of one year and January of the following year, the employer shall
notify the same to the Bureau of Labor Insurance prior to the end of February of
the following year. An adjustment shall take effect from the first day of the
month following the notification.

The contribution rate referred to in Paragraph 1 above shall be rounded to the
nearest decimal point.

An employer shall contribute to an employee's pension fund from the commencement
date of employment to the date on which the employee departs from the employer;
provided that for an employee who chooses to be subject to the pension mechanism
under this Act from the date of enforcement of this Act, contributions to
his/her pension fund shall be made starting from the date on which he/she
chooses to be subject to the pension mechanism under this Act to the date on
which he/she departs from the employer.

For those employees who voluntarily contribute to their pension funds in
accordance with Paragraph 2, Article 7 hereof, the employers or the business
entities concerned shall apply with the Bureau of Labor Insurance for the
commencement or the cease of contribution on the date on which the voluntary
contribution commences or ceases, and shall withhold and make the monthly
contribution.

For those employees who voluntarily contribute to their pension funds as
referred to in the preceding paragraph, the contributions to their pension funds
shall be made from the date on which they declare the voluntary contributions to
the date on which they declare to cease their voluntary contributions.

Within seven days from the date on which an employee commences employment,
leaves the employer, is reinstated or dies, the employer shall prepare a list of
employees and submit it to the Bureau of Labor Insurance for processing the
commencement or cease of the pension fund contributions.

The Bureau of Labor Insurance shall prepare payment statements listing the
amounts that employers shall contribute to the pension funds and collect and
mail the same to business entities prior to the 25th day of the following month.
Employers shall contribute the same prior to the end of the further following
month.

For those employees who voluntarily contribute to their pension funds, their
voluntarily contributions shall be collected by their employers, and be paid
along with the portion contributable by their employers to the Bureau of Labor
Insurance. The contributions to their pension funds shall be made from the date
on which they voluntarily contribute to their pension funds to the date on which
they depart from their employers.

If an employer fails to timely and sufficiently contribute to its employees'
pension funds, the Bureau of Labor Insurance shall inform such employer to
contribute to the funds within a specified time limit.

Employers shall notify and apply with the Bureau of Labor Insurance for ceasing
the contributions to the pension funds of those employees who are on leave
without pay, serving military service, suspended from duties, or detained prior
to a final judgment within seven days from the occurrence of any of such events.
Employers shall apply in writing with the Bureau of Labor Insurance for
resumption of contribution when such employees are reinstated.

In the event that an employer is required to make up the wages for the period of
an employee's suspension from duties or detention, such employer shall make up
the contribution to the pension fund for such period prior to the end of the
month immediately after the month in which the employee is reinstated.

Employers shall inform employees in writing of the amount of contribution made
by the employers to their pension funds.

Employers shall prepare a list of employees including information such as the
date(s) on which an employee reported to and departed from the employer,
attendance, wages, monthly contribution record and other relevant information.

No business unit shall create its own pension scheme to replace the pension
mechanism under this Act.

The pension payments shall be made and calculated as below:
1. Monthly Pension Payments:
The principal and accrued return in an employee's personal pension account are
paid in fixed installments. The amount of each installment shall be calculated
based on the annuity life chart, average life expectancy, interest rate and
other factors.
2. Lump Sum Pension Payment:
The principal and accrued return in an employee's personal pension account are
claimed in full at one time.

The return rate generated from the use of employees' pension funds contributed
in accordance with this Act shall not be less than that of the interest paid for
a two-year term time deposit by local banks. In the event of any deficiency,
the Treasury shall make up the shortfall.

The terms "annuity life chart," "average life expectancy," "interest rate" and
"amount calculations" referred to in Subparagraph 1, Paragraph 1 of this Article
shall be defined by the Bureau of Labor Insurance and approved by the central
competent authorities.

An employee who is 60 years old or above and whose seniority is more than 15
years, is entitled to monthly pension payments. An employee whose seniority is
less than 15 years shall be entitled to a lump sum pension payment .

Seniority referred to in the preceding paragraph shall be calculated based on
the number of years for which contributions to the pension fund were made. If
the calculation of the seniority of an employee is interrupted, both his/her
seniority before and after the suspension shall be counted.

Those employees who are not subject to the Labor Standards Law shall be entitled
to pension payments only when they meet the criteria set forth in Paragraph 1 of
this Article.

At the time when an employee claims monthly pension payments he/she shall pay a
one-time premium for annuity insurance to cover such employee's annuity payments
if he/she lives beyond the average life expectancy stipulated in Paragraph 3,
Article 23 hereof.

The amount of premium, payment method, and the qualifications of the insurer of
the annuity insurance set forth in the preceding paragraph shall be regulated by
the central competent authorities.

If an employee dies before claiming for pension payments, his/her survivors or
designated person(s) may claim for a lump sum pension payment.

If an employee, who was receiving monthly pension payments, dies before he/she
reaches the average life expectancy stipulated in Paragraph 3, Article 23
hereof, the monthly pension payments shall be terminated. The balance in
his/her personal pension account shall be paid to his/her survivors or
designated person(s).

The survivors referred to in the preceding Article shall be entitled to receive
the pension payment in the following order:
1. Spouses and sons and daughters
2. Parents
3. Grandparents
4. Grandchildren
5. Siblings

If there are more than one person in any of the above categories, they shall
jointly claim for the pension payments; otherwise, the one who claims for the
pension payment shall distribute such payment between or among the survivors in
the same category. In the event of death, waiver of inheritance, or
disqualification of heirs, the pension payment shall be distributed to the
remaining survivors; provided, however, that if a will made during lifetime
designates a claimant for the pension payment, such designation shall prevail.

If a deceased employee has no heir as referred to in Paragraph 1 of this Article
or did not designate any claimant before his/her death, the principle and the
return accrued in such employee's personal pension account shall belong to the
Labor Pension Fund.

An employee, his/her survivor(s) or designated person(s) shall file an
application and relevant documents with the Bureau of Labor Insurance for
payment of pension. The application procedure and documents required shall be
prescribed by the Bureau of Labor Insurance.

If the application for monthly pension payments is completed and approved, the
pension payments shall be made on a quarterly basis from the month following the
receipt of the application; in the case of an application for a lump sum pension
payment, the payment shall be made within 30 days after the receipt of the
application.

The method of calculating the final pension amount to be received by an
employee, his/her survivor(s) or designated person(s) shall be determined by the
central competent authorities.

The right to claim for the pension payments referred to in Paragraph 1 of this
Article shall be extinguished if such right is not exercised within five years
from the date on which the pension becomes payable.

The pension and the right to claim for the pension payment shall not be
transferred, attached, offset, or pledged.

With respect to the contributions to an employee's pension fund, the employer
shall not withhold the employee's wage as compensation or ask the employee to
refund such contributions made when the employee leaves the employer. If there
is an agreement to the effect that the employee shall compensate or refund the
pension fund contributions made by the employer upon departure, the agreement
shall be deemed null and void.

An employer who fails to contribute to the pension fund in full for an employee
on a monthly basis thereby causing damages to the employee shall be liable for
the damages sustained by the employee.

The right to file a claim as referred to in the preceding paragraph shall be
extinguished if such right is not exercised within five years from the date on
which the employee leaves the employer.

The sources of Labor Pension Fund are as follows:
1. Pension funds in employees' personal pension fund accounts.
2. Profit return accrued in employees' personal pension fund accounts.
3. Delay penalties.
4. Other income.

The Labor Pension Fund shall only be used for the payment of employees' pensions
and investment, and shall not be attached, pledged, or used for other purposes.
The rules for the management, operation, and allocation of profit and loss of
the Labor Pension Fund shall be drawn up by the central competent authorities
for the Executive Yuan's approval.

The Supervisory Committee may engage financial institutions to manage and
operate the Labor Pension Fund. The regulations governing the scope and budget
of such engagement shall be drawn up by the Supervisory Committee for the
central competent authorities' approval.

The Bureau of Labor Insurance shall create separate accounts for the Labor
Pension Fund, and shall handle the same separately. The relevant account books
and annual reports shall be prepared in accordance with the relevant laws and
regulations and submitted for the Supervisory Committee's review.

The records of the revenue, expenditure, operation and the accrued amount of the
Labor Pension Fund shall be submitted for the Supervisory Committee's review and
for the central competent authorities' reference. The central competent
authorities shall publish the records each year.

An employer with over 200 employees may purchase as annuity insurance
according to the Insurance Law in lieu of contributing to any labor pension fund
according to Paragraph 1, Article 9 hereof; provided that the employer obtains
the consent of a labor union, or if no labor union exists, obtains the consent
of over one-half of its employees. However, if less than one-half of its
employees decide to participate in the annuity insurance scheme, such scheme
shall not be implemented.

Related guidelines concerning revenue, expenditure, approval and other relevant
measures of the annuity insurance scheme mentioned in the preceding paragraph
shall be drawn up by the central competent authorities. A business entity that
purchases the annuity insurance mentioned in the preceding paragraph shall apply
with the central competent authorities for approval.

The average return rate of annuity insurance as prescribed in Paragraph 1 of
this Article shall not be lower than the requirements set forth in Article 23
hereof.

The premiums paid by an employer each month for the annuity insurance shall not
be less than 6% of the employees' monthly salary.

The employer shall pay the premiums by the end of each month. The insurer shall
inform the Bureau of Labor Insurance of the status of premium collection prior
to the seventh day of the following month.

The employer shall be the offeror of the contract of annuity insurance, and the
employee shall be the insured and beneficiary. A business entity shall purchase
annuity insurance from a single insurer. The qualifications of an insurer shall
be set forth by the central competent authorities jointly with the competent
authorities in charge of such insurance.

In the event that an employee leaves employment and is later employed, the
offeror of the annuity insurance contract with respect to such employee shall be
the new employer, who shall continue to pay the premium. In the event that the
new employer and the ex-employer purchase or participate in different annuity
insurance schemes to the effect that respective premiums are different in
amount, the employee shall be responsible for any surplus, unless otherwise
agreed to by the new employer.
In the event that the new employer does not arrange for annuity insurance for
the employee as mentioned in the preceding paragraph, the new employer shall
contribute to the pension fund pursuant to Paragraph 1, Article 6 hereof. In
this event, unless otherwise agreed to by the parties, the employee shall be
responsible for the premium for the annuity insurance in full. In the event
that the employee is not able to pay the premium, the survival of the annuity
insurance shall be governed by the Insurance Law and the relevant insurance
contract.
Where an employee leaves employment and is later employed as referred to in
Paragraph 1 of this Article, he/she may select for the new employer to
contribute to his/her pension fund according to Paragraph 1, Article 6 hereof.

Articles 7 to 13, Article 15, Article 16, Article 20, Articles 29 to 31 of this
Act shall apply mutatis mutandis to annuity insurance.

For the protection of employees' interests, the competent authorities, labor
inspection institutions and the Bureau of Labor Insurance , if necessary, may
check and verify the list of employees and other relevant information of a
business entity.

An employee may, upon the discovery of any violation by the employer of this
Act, file a complaint with his/her employer, the Bureau of Labor Insurance,
labor inspection institutions or the competent authorities. An employer shall
not take any prejudicial action against the employee who filed a complaint.

The financial institution that is commissioned to manage the Labor Pension Fund
shall report any undue interference, manipulation, instruction and other
situations detrimental to the employees' benefits to the Supervision Committee.
The Supervision Committee shall, when deemed necessary, request the central
competent authorities to take the necessary measures.

The persons working for the competent authorities, Supervision Committee, the
Bureau of Labor Insurance, commissioned financial institutions and other
relevant organizations and bodies shall refrain from disclosing confidential
information obtained in the course of performance of their duties or seeking
illegal profits, and shall perform fiduciary duties with prudent care with the
aim to acquire the maximum benefits for employers and employees.

The central competent authorities shall prepare the budget for the Supervision
Committee and the Bureau of Labor Insurance for the implementation and
enforcement of this Act.

All account records, receipts, revenue and expenditure in connection with any
and all matters carried out by the Bureau of Labor Insurance under this Act
shall be exempted from taxation.

If the financial institution commissioned to manage the Labor Pension Fund
violates Paragraph 2, Article 33 hereof, and appropriates the Labor Pension Fund
for purposes other than those in the specified investment scope, an
administrative fine of no less than two million New Taiwan Dollars and up to ten
million New Taiwan Dollars shall be imposed. The central competent authorities
shall also stipulate a time limit order the aforesaid institution to make up the
interest accrued.

If an insurer fails to notify the Bureau of Labor Insurance within the period
prescribed in Paragraph 2, Article 36 hereof, an administrative fine of no less
than sixty thousand New Taiwan Dollars and up to three hundred thousand New
Taiwan Dollars shall be imposed. The administrative fine shall be imposed on a
monthly basis until the correction is completed.

If an employer violates the payment requirements and time limits prescribed in
Paragraph 2 of Article 11, Paragraphs 1 and 2 of Article 12, or Article 39
hereof, an administrative fine of two hundred and fifty thousand New Taiwan
Dollars shall be imposed.

If an employer violates Article 40 hereof by refusing to provide information or
taking any prejudicial action against the employee who filed a complaint, an
administrative fine of no less than thirty thousand New Taiwan Dollars and up to
one hundred and fifty thousand New Taiwan Dollars shall be imposed.

If an employer fails to report the commencement or discontinuation of pension
fund contribution, or fails to prepare the list of employees according to
Article 9, Article 18, Paragraph 1 of Article 20 , Paragraph 2 of Article 21, or
Article 39 hereof, and the correction is not made within the specified time
limit, an administrative fine of no less than twenty thousand New Taiwan Dollars
and up to one hundred thousand New Taiwan Dollars shall be imposed. The
administrative fine shall be imposed on a monthly basis until the correction is
completed.

If an employer fails to contribute to the Labor Pension Fund each month in
accordance with Paragraph 1, Article 13 hereof, an administrative fine of no
less than twenty thousand New Taiwan Dollars and up to one hundred thousand New
Taiwan Dollars shall be imposed. The administrative fine shall be imposed on a
monthly basis until the correction is completed. The administrative fine
prescribed in Subparagraph 1, Article 79 of the Labor Standards Law shall not
apply.

Officials of the competent authorities failing to impose the administrative fine
in accordance with the preceding paragraph shall be subject to the relevant
penalties set forth under the Civil Servant Evaluation Act.

The fines collected according to Paragraph 1 of this Article shall be deposited
into the Labor Retirement Fund as prescribed in Paragraph 2, Article 56 of the
Labor Standards Law.

If an employer violates Article 30 or Article 39 hereof by deducting the wages
of the employees, an administrative fine of no less than ten thousand New Taiwan
Dollars and up to fifty thousand New Taiwan Dollars shall be imposed.

If an employer violates Paragraph 2 of Article 15, Paragraph 1 of Article 21, or
Article 39 hereof concerning the declaration or notification requirements, an
administrative fine of no less than five thousand New Taiwan Dollars and up to
twenty five thousand New Taiwan Dollars shall be imposed.

If an employer fails to contribute within the time limit in accordance with
Paragraph 1 of Article 14, Paragraph 1 of Article 19, or Paragraph 2 of Article
20 hereof or an employer only contributes a part of the required amount of labor
pension fund, a penalty at 3% of the delinquent contribution shall be imposed on
a daily basis for the period from the date immediately following the date of
expiration of the time limit till the date immediately preceding the settlement
date; provided, however, that the amount of such penalty shall not exceed that
of the pension fund that the employer should have contributed. If the employer
still fails to contribute the required amount of pension funds, commencing from
the following date and ending on the settlement date, a penalty equivalent to
two times the delinquent contribution shall be imposed on a monthly basis. In
the event that the period for calculation of penalty on a monthly basis is less
than a month, the penalty shall be computed proportionately.

If an employer fails to contribute within the time limit stipulated in Article
36 and Article 39 hereof or an employer only contributes a part of the required
amount of labor pension fund, an administrative fine equal to the amount that
the employer should have contributed shall be imposed on a daily basis until the
date of correction.

In the event that a penalty or a fine imposed under this Act remains unpaid
within 30 days after receipt of a notice, it shall be referred to the court for
compulsory execution.

With respect to the annuity insurance prescribed in Article 39 hereof, the power
to impose administrative fines and to apply for compulsory execution proceedings
with the court is delegated to the Bureau of Labor Insurance.

If the representative or any employee of a legal person or the agent or employee
of a natural person violates this Act in the course of performing his/her
duties, he/she shall be punished according to the Articles of this Chapter 6.
In addition, the legal person or the natural person shall also be imposed the
fines stipulated in the respective Articles; provided, however, that exemption
shall be granted when the representative of the legal person or the natural
person has tried his/her best to prevent the occurrence of the violation.

The representative of a legal person or the natural person who instigates or
encourages an act of violation shall be deemed the offender.

In the event of a merger, spin-off, or transfer of assets of a business entity,
the succeeding entity shall be liable for any outstanding labor pension fund
contribution.

The enforcement rules of this Act shall be set forth by the central competent
authorities.

This Act shall take effect after one year from the date of promulgation hereof.