Government Establishes Labor Pension Fund Supervisory Committee

        The Labor Pension Fund Supervisory Committee, which was established on July 2, expects to have around NT$30 billion available for outsourced stock market investment this year. The committee has set the annual return on its outsourced operations at 3%, and work on the first outsourcing bid tender will be completed in November.

        The Organizational Act for the Labor Pension Fund Supervisory Committee was promulgated on Mar. 21 this year. The committee is made up of experts with financial management, economic, and legal experience, who are recommended by related government agencies, national employers’ bodies, and national labor bodies. Following its establishment, the committee has taken over the unified management of the funds of both the old system under the Labor Standards Act and the new retirement fund system. “Professional operation with centralized supervision” will be adopted to assure that the living needs of the elderly are looked after.

        The committee indicates that this year, 80% of pension fund investment will go into fixed deposits and the purchase of bills and bonds, 15% will be invested in the domestic stock market, and 5% will go into overseas stock markets. About NT$700 billion in pension funds is under the committee’s control at the present time, of which funds under the new pension system account for approximately NT$170 billion (and are accumulating at the rate of NT$8 billion per month) and funds under the old system make up around NT$430 billion, of which about 20% have been invested in the stock market. These funds will continue to be managed by the Bank of Taiwan.

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