Civil Servants' Pension Arrears Paid! Military, Civil, and Educators Receive Retroactive Payments — But Could Money Be Recovered If Ruling Is Unconstitutional? Executive Yuan Responds

The Legislative Yuan recently passed, under the leadership of the Blue-White coalition, bills halting pension reforms that had previously reduced benefits. In response, the Executive Yuan and Examination Yuan decided to implement the changes and began retroactive payment procedures. The differential pension amounts have now been gradually deposited into the accounts of retired civil servants and educators.

However, the Executive Yuan's public stance has subtly shifted. Initially stating payments were made 'in accordance with the Constitutional Court ruling,' it later revised its position to: 'Payments already disbursed will be handled by relevant agencies based on the final Constitutional Court ruling and related legal procedures.'

In response to public concerns about whether the government will reclaim funds already paid to retirees if the Constitutional Court later rules the amendments unconstitutional, Executive Yuan officials stated that all actions must await the Court's final judgment, after which relevant agencies will proceed according to the ruling and legal protocols.

Regarding concerns about the earlier insolvency of pension and retirement funds, the Ministry of Civil Service recently released updated actuarial data. Officials explained that the Executive Yuan, as a constitutional body, has consistently upheld its duty to protect the Constitution and adhered to prior constitutional interpretations by the Judicial Yuan's Grand Justices when exercising its authority. The Executive Yuan respects the Examination Yuan's approach—also a constitutional body—and has extended the same treatment to educators as civil servants, following precedent.

The legislative amendments restore the upper limit of retirement income replacement rates to the 2023 (Minguo 112) standards. Officials warn this reverses past pension reform achievements and significantly reduces financial contributions to the civil service and educator pension funds. According to prior actuarial assessments by the Ministry of Civil Service, the civil service pension fund is now projected to be depleted by 2045 (Minguo 134), and the educator fund by 2042 (Minguo 131), impacting future retirement and pension benefits for current civil servants and educators.

Officials emphasized that since the 2018 pension reform, measures such as gradually lowering income replacement rates and eliminating the 18% preferential deposit interest for retired civil servants have been implemented. These reforms were previously upheld as constitutional by the Judicial Yuan's Grand Justices. Over eight years, they successfully improved the financial health and long-term sustainability of the pension system—a progress now at risk due to the recent legislative changes.