Labor Pension Opt-Out Measure Takes Effect to Protect Vulnerable Groups and Maintain Social Assistance Eligibility

(CNA) - To ensure that vulnerable individuals do not lose their social assistance eligibility due to receiving labor pension benefits, the Bureau of Labor Insurance (BLI) announced today the implementation of a new measure allowing temporary opt-out from labor pension payments. This allows individuals to apply to temporarily forgo their "old-age pension" or "disability pension" for a minimum period of one year.

Liu Hsiu-ling, head of the Ordinary Accidents Division at the BLI, stated today that labor pension benefits, once approved, are generally disbursed monthly until the recipient's death or loss of eligibility. The amounts are also adjusted based on the cumulative growth rate of the Consumer Price Index (CPI).

However, Liu explained that according to the Social Assistance Act, labor insurance benefits must be included in the calculation of total household income. Recently, vulnerable individuals have reported that as their labor pension benefits increase with inflation, their total household income exceeds the threshold, causing them to lose eligibility for social assistance programs such as low-income household support or residential care.

Liu stated that the Labor Insurance Act does not have provisions for opting out of pension payments during the monthly disbursement period. Therefore, without altering the fundamental legal framework, the BLI has established the new "Temporary Opt-Out of Labor Pension" measure in response to public demand, aiming to prevent vulnerable individuals from losing their social assistance eligibility.

Liu elaborated that the new measure allows individuals to apply to forgo their "old-age pension" or "disability pension." However, this applies to the entire amount of each installment from the month of application onwards (including any dependent allowances), and partial opt-outs or retroactive opt-outs are not permitted.

Liu pointed out that to maintain payment stability and prevent the manipulation of social welfare eligibility through technical adjustments, the new measure stipulates a minimum opt-out period of one year. After one year, recipients can apply in writing to resume payments. However, payments that have been opted out and completed cannot be retroactively claimed. If an individual wishes to opt out again after resuming payments, there must be an interval of at least one year.

Liu said that pension amounts will continue to be adjusted with the CPI during the opt-out period. When individuals apply to resume payments in the future, they will receive the adjusted amount.

Furthermore, Liu stated that if a recipient dies during the opt-out period, their legal heirs cannot claim the pension that the deceased had opted out of. However, eligible survivors can still claim survivor's pensions or the difference in benefits. If they choose to claim the difference, the total amount the deceased had "received" and "opted out of" during their lifetime will be included in the calculation of the total amount received for deduction.

The Ministry of Labor reminds the public that opting out of pension payments is a significant change in rights. Once approved, it cannot be altered. Legally, opted-out amounts are considered as received. Therefore, individuals must carefully evaluate their situation before submitting an application.

Liu stated that recipients wishing to apply for opt-out or to resume pension payments must do so in writing. The application form must include the recipient's name, ID number, contact information, the pension item to be opted out of or resumed, and must be personally signed. The application date will be based on the postmark of the original mailing post office or the date of submission to the BLI. (Editor: Kuan Chung-wei) 1150630

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