[Finance] Labor Insurance's 14 Trillion Hidden Debt; Labor Groups: Premiums Can Be Raised, Pension Benefits Cannot Be Cut

The hidden debt of the Labor Insurance program has exceeded NT$14 trillion, once again drawing attention to the issue of its long-term financial sustainability. Labor groups stated in interviews today (15th) that in addition to continuous government allocations and improving fund investment performance, the government should also initiate reform discussions as soon as possible. They emphasized that workers can accept a moderate increase in premiums but cannot accept the reduction of retirement benefits as a price for reform. #Listen to reporter Yang Wen-chun's report# Ho Cheng-chia, chairman of the Taiwan Confederation of Trade Unions, stated in an interview with Radio Taiwan International (RTI) on the 15th that the labor insurance issue has persisted for many years, primarily because the number of people paying premiums is gradually decreasing, while the number of people receiving labor insurance annuities is continuously increasing, leading to expenditures significantly exceeding income. Ho Cheng-chia mentioned that the government currently supports the financial stability of labor insurance through budget allocations and investment returns from the labor fund. The allocation mechanism has been legalized, and the government's financial situation has been good in recent years. Whether it's the bustling stock market driving tax revenue growth or the continuous high revenues generated by technology industries like AI and semiconductors, it all indicates the government's capacity for allocations. However, according to previous research estimates, in about 5 to 6 years, the annual government allocation amount may approach NT$1 trillion. At that time, more fundamental reform issues will inevitably have to be faced. Regarding the direction of reform, Ho Cheng-chia stressed that what labor groups cannot accept is the reduction of existing benefits. He said: "(Original sound) Among the currently insured population, we can accept paying a little more in premiums. However, if you ask workers or those receiving benefits to sacrifice their rights to receive benefits for the sake of government reforms, we cannot accept it. This is because the entire labor insurance mechanism was initiated by the government and participation was mandatory. Therefore, the government should naturally bear its corresponding responsibility." He pointed out that the current average labor insurance annuity payment is about NT$20,000, plus the average monthly pension from the new retirement system of about NT$7,000, totaling about NT$27,000. However, compared to the average living expenses in various regions, this amount is actually difficult to fully support retirement life. Further reducing benefits would not only fail to solve the problem but might also lead to more issues of elderly poverty and social welfare expenditure. Ho Cheng-chia stated that if the government wishes to address the financial gap by increasing premiums, labor groups are willing to engage in rational discussions. However, due to the fact that employers bear as much as 70% of the burden in the premium sharing structure, the government often has concerns when adjusting the rates, which is one of the important reasons why reforms have been slow to progress. He believes that labor insurance is a social insurance system, crucial for the retirement security of millions of workers. The government should promptly convene a cross-ministerial discussion platform involving labor, management, government, and academic sectors to broadly gather opinions from all parties. (Editor: Chung Chin-lung)