History

These Measures are drawn up in accordance with Paragraph 3 to Article 56 of the Labor Standards Act (hereinafter referred to as the Act).

The Council of Labor of the Executive Yuan shall preside as the competent authority of the Fund, and shall be responsible for the execution all functions of income and expenditure, investment and management in accordance with these Measure, unless otherwise regulated by other provisions.

The income and expenditure, investment and management of the Fund shall be executed by the China Central Trust, and any remaining activities related to investment and management of the Fund shall be authorized to all other financial institutions; the Council of Labor Affairs under the Executive Yuan, the Ministry of Finance, and other related executive function authorities shall form the Supervisory Committee of the Worker's Retirement Fund (hereafter referred to as the Supervisory Committee), and all other relevant committees' internal structure(s) shall be determined according to other provision.
The China Central Trust shall commission other financial institutions to assist in activities related to the income and expenditure, investment and management of the Fund; all other contracted assistance shall be subject to approval by the Supervisory Committee and submitted to the competent authority for registration and examination.

Resources of the Fund originate from the following:
1.The workers' retirement funds allocated by all business entities in compliance with Paragraph 1, Article 56 of the Labor Standards Act.
2.The money accrued from interest or through investment by the Fund.
3.Any sum of money granted by the national government.

The scope of expenditure and outlay of the Fund shall be restricted to the payment of the workers' retirement funds and under Article 8 of the Rules for the Allocation and Management of Workers' Retirement Fund, the severance payments given to workers by business entities upon cessation of operation.

The scope of investment of the Fund is defined by the following:
1.Deposit in financial institutions.
2.As loans to all levels of governments for the purposes of economic development or investment outlays; reimbursements may come either in the form of profits or through annual budgetary repayments.
3.Purchase stocks or securities issued by the list companies or receipts of profits of the securities investment trust funds.
4.Purchase of government, financial or corporate bonds.
5.Purchase of short-term bonds.
6.Invest in the deposit of money of foreign denominations, foreign negotiable securities, or foreign derivative monetary commodities.
7.Any other methods beneficial to the investment of the Fund are subject to approval by the Supervisory Committee and permission by the Executive Yuan.
The amount of the Fund invested for in the purpose specified in Item 3 of the preceding paragraph shall not exceed 30 percent of the Fund's net amount.
The amount of the Fund invested for the purpose specified in Item 6 of the first paragraph shall not exceed twenty percent of the Fund's net amount.

When the Fund invests in deposits of money of foreign denominations, the following requirements shall be observed:
1.Deposit in banks that are located in the Republic of China or overseas branch institutions of the domestic banks.
2.Deposit in foreign banks that have assets or capitals ranking in top three hundred banks or have set up branch offices in the Republic of China.
3.The total amount of deposit in the same bank shall not exceed one percent of the Fund's net amount.

The Fund shall not invest in the following negotiable securities:
1.Negotiable securities issued in Mainland China area.
2.Negotiable securities issued by government or corporations in Mainland China area through stock and bill exchange in Hong Kong or Marco.
3.Negotiable securities issued by corporations affiliated with Heng Seng China-Affiliated Corporation Index.
4.Negotiable securities issued by corporations directly or indirectly held by governments or corporations in Mainland China area over twenty-five percent through stock and bond exchange markets in Hong Kong or Marco.
When the Fund invests in foreign negotiable securities, in addition to the requirements in the preceding paragraph, it shall also be limited according to the following items:
1.Stocks, bonds, exchange traded funds or depositary receipts transacted in foreign centralized transaction markets and over-the-counter exchange markets.
2.Bonds or debentures issued or guaranteed by governments or institutions that are graded and valued as class A by the credit assessment and grading institutions approved by international famous institutions or the stock competent authorities.
3.Receipts of profits, stock shares of funds, or negotiable securities counted by investment units(hereinafter referred to as foreign funds) issued or managed by the foreign fund management institutions which are entitled to provide investment recommodations for stock investment enterprises and are approved by the stock competent authorities.

When the Fund invests in foreign negotiable securities, the following limitations on the ratio of investment shall be observed:
1.The total capitals of purchasing every single foreign stocks, bills, buying and selling funds of stock exchanges or foreign funds shall not exceed one percent of the Fund's net amount at the time of the investment.
2.The total amount of investing in every single foreign stocks or bills shall not exceed ten percent of the total amount of issuance of those stocks or bonds.
3.The total investment in every single buying and selling fund of stock exchanges or foreign fund shall not exceed ten percent of the receipts of benefits that have already issued by that fund.
4.When invests in receipts of deposits and trust funds, the total amount of money or number shall be combined and calculated with the stocks issued by those corporations which are in possession of those receipts. The amount of the receipts of deposits and trust funds shall be calculated on the basis of the shares of stock illustrated by those receipts of deposits and trust funds. When combinely calculated the limitations of the ratio of investments, the requirements of items 1 and 2 shall be observed.

When the Fund invests in foreign derivative monetary commodities, the following requirements shall be observed:
1.It shall be limited to risk-avoidance transactions.
2.It may be processed in the limitations of amount and instruments stipulated by the Central Bank in order to be consistent with the requirements of the avoidance of the risks concerning foreign exchange rate between the New Taiwan Dollar and money of foreign denominations in foreign investment programs.
3.It shall be processed through the futures exchange approved by the stock competent authorities when doing this transaction, and shall be within the scope of the foreign futures transaction contracts publicly announced by the stock competent authorities.

For the investments of the Fund, the minimum benefits of the annual distributions of final financial statements shall not be lowered than the benefits attainable from the amounts accrued from two-year deposits with the compound interest rates offered by local banks.
When the received benefits of the Fund's investments exceed those of the benefits attainable from the amounts accrued from two-year deposits with the compound interest rates offered by local banks, one half of the surplus amounts shall be reserved as accumulated surplus. However, the total amount of accumulated surplus shall not exceed six percent of the total net amounts of the Fund at the end of December of that year. In the event that the accumulated surplus can be further redistributed, the distribution shall be completed in three months after the issuance of the annual final financial statements. Besides, the amount shall be limited to the unsettled debts of the Fund while redistributing.
The received benefits referred to in the preceding paragraph shall first exclude the losses of unrealized price drops of the final estimates from the investments in stocks and securities, and then calculate the minimum benefits of the investments of the Fund. In case of the above-mentioned minimum benefits have not reached the benefits level obtainable from the amounts accrued from two-year deposits with the compound interest rates offered by local banks, the deficit shall be covered by the accumulated surplus. If the surplus is inadequate to cover the deficit, it can be covered by the surplus of the nest year. However, the duration for this type of coverage is only limited to two years. In case that the deficit is still inadequate to cover the surplus, the Treasury Funds can be used to cover the deficits after the approval of the competent authority.

The China Central Trust shall execute all duties pertinent to the income and expenditure of the Fund in accordance with the stipulated procedures, and shall periodically submit written reports informing the competent authority of developments and activities.

A budget plan for the income and expenditure of the Fund shall be drawn up prior to the start of the New Year, and a final financial statement be made at the end of the year, both of which shall be submitted for approval and ratification by the Supervisory Committee and finally submitted to the competent suthority.
In order to handle matters concerning accounting of the Fund, an accounting system shall be established.

The Measure shall take effect on the day of promulgation.