Pension Back Payment Budget Shortfall? Investigation Reveals 'Someone Is Lying': Executive Yuan's Pursuit Leaves Hearts Cold

Eight years after the military, civil servants, and teachers' pension reform (nian gai) was implemented, related debates continue. The 'no pension cut' bill passed the Legislative Yuan at the end of 2025, and approximately 180,000 retired military and civil servants have recently received back payments for 'over-deducted pension amounts' resulting from the recalculation of pension replacement rates. The Executive Yuan, which has already filed a constitutional interpretation petition regarding the suspension of pension cuts, stated on August 1 that it hopes the Constitutional Court will issue a swift ruling. It also acknowledged that government fiscal expenditure has indeed increased after the legal amendment. In response, Li Lai-hsi, a leading figure in the anti-reform movement and former chairman of the National Association of Civil Servants, posted on Facebook on the 5th under the title 'Another False Issue!' accusing the Executive Yuan of lying. He criticized the government for ignoring the passed legislation and continuing to target retired civil servants, calling its actions disheartening.

Why Is the Suspension of Pension Cuts Controversial? Could the Pension Arrears Be Recovered?

At the end of 2025, the Legislative Yuan passed amendments to the 'Civil Servants Retirement, Dismissal, and Pension Act' and the 'Public School Staff Retirement, Dismissal, and Pension Regulations,' halting the annual reduction of pension replacement rates and reverting calculations to the 2023 standard. Looking back at the controversy, after the bill passed its third reading and was promulgated by the Presidential Office, the Executive Yuan, Examination Yuan, and the DPP's Legislative Caucus all filed for constitutional interpretation. The outcome has not yet been announced. Meanwhile, the Ministry of Examination has already begun disbursing the recalculated pension arrears. Executive Yuan spokesperson Li Hui-chih stated that the government respects the authority of the Examination Yuan and disbursement agencies, emphasizing that it has consistently safeguarded the rights of civil servants and educators.

Can the Ministry of Examination Disburse Arrears Before Constitutional Interpretation? What Is the Executive Yuan's Position?

However, the Executive Yuan emphasized that the Judicial Yuan's Grand Justices ruled in 2019 that the direction and design of pension reform are constitutional. It stated that the current amendment to suspend pension cuts 'indeed increases government fiscal expenditure,' and therefore, it has filed for constitutional interpretation, urging the Constitutional Court to swiftly issue a ruling. In response, Li Lai-hsi criticized the spokesperson's claim that suspending pension cuts increases government budget. He reiterated that stopping deductions is merely a 'reduction,' not increasing retirees' income, and thus does not add a single cent to government expenditure. Despite this, he said he has faced online attacks and criticism from government supporters.

Does Back Payment of Over-Deducted Pensions Increase Budget? Li Lai-hsi Reveals Investigation Results

Li Lai-hsi stated that he personally verified with government departments and educational institutions whether any budget shortfall occurred after the Ministry of Examination refunded over-deducted pension amounts from January to July 2026 on August 1. He received the answer: 'Not a single one.' All agencies and schools, including the Executive Yuan headquarters, managed the payments within existing budget allocations under the same expenditure category, without needing additional budgeting or reallocating funds. This, he argued, proves the Executive Yuan has been lying—ignoring the fact that the retirement fund's surplus earnings mean 'there is no longer a risk of bankruptcy.' He accused the government of continuing to unjustly target retired civil servants with flawed policies and disregarding legislation passed by the legislature, showing neither rule of law nor compassion.

Were Over-Deducted Pensions Fully Refunded? Disputes Over 2024 and 2025 Arrears?

In conclusion, Li Lai-hsi lamented that despite consecutive years of tax revenue exceeding targets and the retirement and labor funds generating surplus returns, the government dares not touch labor insurance pension payouts but has for years over-deducted retired civil servants' old-system pensions to fill the so-called 'gap' in the new retirement fund. Recently, Li emphasized on Facebook that after receiving tens of thousands of dollars in pension arrears this year, retired civil servants can finally breathe a little easier. However, he noted that this only covers the over-deductions from 2026 and the suspension of annual pension reductions, while the over-deductions from 2024 and 2025 remain unresolved. Moving forward, he said they will monitor whether pension adjustments will be linked to inflation indices, and the next phase of advocacy will be to end the 10-year policy of gradually reducing pension replacement rates.