History

These Measures are drawn up in accordance with Paragraph 2 to Article 56 of the Labor Standards Law (hereinafter referred to as the Law).　

The business entity shall allocate the workers' retirement fund ranging from 2 percent to 15 percent of its total monthly wage payment per month. However,the allocation shall follow the stipulations of the income Tax Law before it is revised.

The allocation rate for each business corporation shall be formulated by the employer within the boundaries mentioned in the previous Article, taking into consideration the following factors:
1. The seniority of the workers;
2. The wage structure;
3. The labor turnover rate in the last five years;
4. The number of workers who will retire in the next five years;
5. The retirement fund allocated according to Measures for the Custody, Utilization and Disbursement of Employee Retirement Pension of Profit-Making Enterprises before the present Rules are promulgated and implemented;
6. The life insurance taken for workers before the present Rules are promulgated and implemented, provided that the benefit payments of which may definitely be used as workers’ retirement fund.　

The fixing or adjustment of allocation rate by a business entity shall be reported to the local competent authority for approval and registration.　

When the accumulated retirement fund is enough to pay for the workers’retirement pensions of the business entity, it may, after obtaining the sanction of its Workers’ Retirement Fund Supervisory Committee meeting, request the local competent authority to approve the temporary suspension of such allocation.　

The worker’s retirement fund shall be deposited in a special account of a designated financial organization in the name of the Supervisory Committee of Worker’s Retirement Fund of the business entity. For disbursement, the signatures of the employer, the chairman, and the vice-chairman of the Supervisory Committee of Worker’s Retirement fund of the business entity shall be obtained.
In the event that a business entity ceases operations, and the employer, the chairman and vice-chairman of the Supervisory Committee of Worker’s Retirement Fund are unavailable or unable to sign for disbursement, then following verification of the situation by the local authority, a two-thirds majority of the members of the Supervisory Committee shall, within six months after the cessation of operations, sign to authorize disbursement.
In the event that a business entity ceases operations, and the disbursement of the worker’s retirement fund cannot be accomplished in the manner described in the previous paragraph, compensation in the form of IOUs shall be distributed by a designated financial institution upon request from a local competent authority and in accordance to the date set by a conference comprised of those concerned with severance and retirement payments.
The above-mentioned conference shall be convene and presided by the local competent authority following public notification. The conference shall draw up the name list of applicants seeking compensation, determine and designate respectively the date of disbursement and the financial institution responsible for disbursement, prepare payment lists for the labor retirement fund and other related matters.

In case the workers’ retirement fund allocated by a business entity is insufficient to pay for workers’ retirement pensions, the business entity concerned shall make up for the balance.　

When business entities transfer their workers ’ retirement funds pursuant to Paragraph 2 to Article 15 of the Enterprise Merger and Acquisition Law, they shall transfer the funds to the labor retirement funds of the receiving business entities in accordance with the proportion of the number of workers involved, their seniority years and wages of the transferred businesses or properties.
Before business entities transfer their workers’ retirement funds pursuant to Paragraph 2 to Article 15 of the Enterprise Merger and Acquisition Law, the allocated workers’ retirement funds shall reach the amounts of the temporary suspension of such allocations.
In addition to paying retirement for workers, business entities may also utilize the retirement funds they have already been allocated as severance pays for their workers in case of suspension of their operations.When business entities transfer their workers’ retirement funds pursuant to Paragraph 2 to Article 15 of the Enterprise Merger and Acquisition Law, they shall transfer the funds to the labor retirement funds of the receiving business entities in accordance with the proportion of the number of workers involved, their seniority years and wages of the transferred businesses or properties.　

Prior to the promulgation and implementation of the present Rules, the retirement fund allocated according to the Measures for the Custody, Utilization and Disbursement of Employee Retirement Pension of Profit-Making Enterprises may transfer in the manner pursuant to the provisions of the present rules, to the special account for the deposit and utilization of the worker’s retirement fund of the business entity.　

The local competent authority or labor inspection agency may send personnel to inspect the condition of the allocation of retirement funds of different business entity. In case of violations of provisions, it shall be duly processed according to relevant stipulations.　

In case of necessity, the local competent authority may request the designated financial organization responsible for the allocation & management of workers,retirement fund to supply relevant information.　

Within one month after the end of each year the business entity shall prepare the allocation & disbursement account of workers’ retirement fund, and submit the same to the Supervisory Committee of workers’ retirement fund for examination and approval.　

The opening day for the allocation of workers’ retirement fund of different business entities according to the provisions of the Rules shall be decided by an executive order of the central competent authority.　

The Rules shall take effect on the day of promulgation.