Pension Arrears for Public Servants Deposited! Will Halting Pension Cuts Increase Government Burden? Li Laixi Counters: 'No Agency Spent an Extra Cent'

Following the Legislative Yuan's third-reading passage of a bill halting the phased reduction of retirement benefits for public servants, the pension arrears for approximately 180,000 affected retired public servants were successfully deposited on August 1. However, regarding whether related expenditures will be included in next year's overall budget, Executive Yuan spokesperson Li Huizhi recently stated that the legislative amendments will indeed increase government fiscal spending. This statement has drawn attention, prompting Li Laixi, former理事长 of the National Civil Servants Association, to publish a rebuttal claiming that all agencies managed the payments within their existing budgets and did not impose any additional burden on the government.

Will halting pension reductions truly strain government finances?

Executive Yuan spokesperson Li Huizhi, while explaining the compilation of next year's overall budget, stated that legislative amendments related to pension reform passed by the Legislative Yuan will indeed increase government fiscal expenditures. She emphasized that, prior to a ruling from the Constitutional Court, the Executive Yuan respects the Examination Yuan's authority and also respects the responsibilities of central and local disbursement agencies.

This statement immediately sparked public concern, raising questions about whether uncertainty remains regarding the future of the policy to halt pension reductions. Additionally, retired civil servant groups continue to monitor the progress of reclaiming over-deducted statutory amounts for 2024 (Year 113) and 2025 (Year 114), bringing pension issues back into the spotlight of policy discussions.

What does the verification show? Do agency budgets suffice?

In response to the Executive Yuan's claims, Li Laixi stated that he recently inquired with familiar government departments and educational institutions. He investigated the operational status following the suspension of pension deductions starting August 1 and the back-payment of retirement benefits from January to July, confirming whether any agencies or schools faced budget shortfalls.

Li Laixi emphasized that the answer he received was 'not a single one.' Including the Executive Yuan headquarters, all units were able to fully handle the disbursement of retirement benefits after halting reductions without needing to increase budgets or reallocate funds, all within their existing budget allocations and expenditure categories.

Using over-deducted old-system funds to subsidize the new system? What lies at the heart of the pension controversy?

Li Laixi pointed out that halting the reduction of public servant pensions merely stops losses; retirees do not gain additional income, so it does not increase government budgeting. He believes that government tax revenues have consistently exceeded forecasts in recent years, and both the retirement fund and labor fund have achieved surplus returns for several consecutive years, eliminating any bankruptcy crisis for the retirement fund.

He further explained that the government has continuously over-deducted retirement benefits under the old system from retired public servants and used these funds to fill gaps in the new retirement fund. Li Laixi criticized the government's continued adherence to this policy as unreasonable and accused the Executive Yuan of ignoring legislation passed by the legislature and the actual execution status of related budgets.