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Labor Fund Facing Heavy Losses, Labor Minister Assures Retirement Benefits

Labor Fund Facing Heavy Losses, Labor Minister Assures Retirement Benefits

Labor Minister Hsu Chen-han emphasized that the labor insurance fund remains above NT$1 trillion, assuring workers that they need not worry. After recording the highest profits last year, the labor fund faced a significant loss of NT$198 billion in the first four months of this year due to the impact of the U.S. tariff war. During a legislative session, Hsu reassured that the labor insurance fund still maintains a substantial level, emphasizing that the government will take ultimate payment responsibility and that the workers' pension mechanism guarantees returns.

He stated that while short-term profit fluctuations exist, they will not affect the retirement payouts. In response to concerns raised by committee members, Hsu explained that the labor fund's earnings have indeed been impacted by geopolitical factors and U.S. tariff issues, but the fund still maintains a high level of stability.

Legislators expressed concern over the labor fund's reported losses, particularly as the new pension fund saw a deficit of NT$130.54 billion, which threatens future workers' retirement living standards. Hsu reiterated that the pension fund has a 'guaranteed return' mechanism in place, ensuring that short-term fluctuations do not influence long-term disbursements. Over the past decade, the average return rate of the labor fund has been over 6%, therefore there is no need for excessive worry about short-term market fluctuations.

With declining birth rates, legislator Lin Shufen voiced concerns that 'the number of contributors is halved while the number of recipients is increasing,' urging the government for more proactive measures to ensure the sustainability of the labor insurance fund.