Taiwan Starts Pension Back Payments, Awaiting Constitutional Court Ruling

Taiwan's Executive Yuan has started issuing back payments to retired civil servants and teachers, a move stemming from legislation passed late last year to halt pension cuts. These funds are being deposited into recipients' accounts.

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The Executive Yuan, as a constitutional organ, always upholds its constitutional responsibility to protect the constitution and follows the constitutional interpretations of the Council of Grand Justices, exercising the constitutional duties and obligations of a constitutional organ.

Initially, the government indicated that payments would be made based on future constitutional court rulings. However, it has since shifted its stance, stating that disbursed funds will be handled according to the court's final judgment and relevant legal processes. This decision has drawn criticism, with some accusing the administration of weakening key pension reforms enacted over the past eight years, potentially for electoral advantage.

Officials from the Executive Yuan assert that the government is acting within its constitutional duties and respecting the interpretations of the Council of Grand Justices. They also stated they respect the approach taken by the Examination Yuan, another constitutional body. The government maintains that the pension reforms, which included gradually reducing income replacement ratios and eliminating preferential interest rates on savings, were declared constitutional and have improved the financial health of pension funds.

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Regarding the handling of funds by the Examination Yuan, another constitutional organ, the Executive Yuan respects it based on the spirit of constitutionalism.

However, concerns remain about the financial impact. The halt on pension cuts is expected to significantly reduce contributions to the retirement funds. Previous estimates suggested that the civil servant pension fund could be depleted by 2045 and the education fund by 2042, potentially affecting the benefits for current and future retirees. The government has stated that the disbursed funds will be addressed based on the constitutional court's ruling and subsequent legal procedures.

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Payments will be handled according to the judgment results and relevant legal procedures after the Constitutional Court makes its ruling.