Not Just Labor Insurance and Retirement! Forgotten 'Third Retirement Fund' Allows Seniors to Receive Extra $66,000 Annually—Even While Working

Many workers, after turning 60 and receiving their Labor Insurance old-age benefits or Labor Retirement Fund, choose to 'retire without stopping work' and continue contributing their skills in the workplace. However, most people are unaware that the government has established a 'third retirement fund' mechanism. If re-employed after retirement, employers are legally required to contribute 6% of the worker's salary monthly into their personal retirement account, and workers can apply to withdraw these funds once per year. According to the latest statistics from the Labor Insurance Bureau, this 'continued contribution retirement fund' averages about NT$66,218 per person annually, with the average payout in the first half of 2025 approaching NT$80,000—providing additional financial security for older workers.

What is the 'Continued Contribution Retirement Fund'? No Age Limit, Applies Even with Multiple Jobs

Under the Labor Retirement Fund Act, even if a worker is over 60 and has already received a lump-sum or monthly retirement payout, as long as they are re-employed, the employer has a legal obligation to contribute at least 6% of their monthly salary into the worker's personal retirement account (the actual contribution amount is calculated based on the 'Monthly Contribution Wage Classification Table for Labor Retirement Fund').

This mechanism has no age or seniority limits—workers over 90 years old are also eligible. Additionally, if a worker holds multiple jobs, each employer must separately contribute 6% to the retirement fund, although contribution years are not counted twice.

Eligibility and Rules for the Continued Contribution Retirement Fund: Reapply After One Year

To smoothly receive this additional retirement fund, workers must meet the following core conditions:

- **Core Eligibility**: Aged 60 or older, previously applied for retirement benefits under the new or old Labor Retirement Fund system, and currently employed. - **Waiting Period**: There must be a full one-year gap between applications (one withdrawal per year maximum). For example, if funds were disbursed on August 1, 2025, the next application cannot be submitted until August 1, 2026. If there is no immediate financial need, workers may choose to leave the funds in the account to continue earning investment returns. - **No Limit on Number of Applications**: As long as the worker remains employed and contributions are ongoing, they may apply annually without restriction.

The actual payout amount will be based on the total principal and accumulated earnings in the account at the time of approval. If the worker passes away, their dependents may apply to receive the remaining balance within 10 years of the worker's death; otherwise, the right to claim expires.

Application and Inquiry Methods for the Continued Contribution Retirement Fund

The 'continued contribution retirement fund' is a personal right of the worker. Applications are submitted directly by the worker to the Labor Insurance Bureau—no employer involvement is required. Main application and inquiry methods include:

- **Online Application and Inquiry**: With a card reader and a National Identification Card, log in to the 'Labor Insurance Bureau e-Service System' to check account balances, simulate payout amounts, and submit applications online. - **Paper or In-Person Submission**: Complete the 'Labor Retirement Fund Application and Receipt Form', attach copies of identification documents and a domestic bank account passbook, and mail it to the Labor Insurance Bureau or submit it in person at any local office. - **ATM Inquiry via Financial Card**: Use a Labor Protection Card or postal financial card at a physical ATM to check account balances and earnings.

Once complete documents are received, approval and disbursement to the designated account typically occur within 30 days. Overseas residents may authorize a proxy by submitting a notarized power of attorney from a diplomatic mission. If receiving funds into a foreign account, note that related transfer fees will be deducted from the retirement payout. If found ineligible, recipients must return the funds within 30 days of notification to avoid statutory late interest.

Clarifying Misconceptions: Key Differences Between 'Labor Retirement Fund' and 'Labor Insurance Old-Age Benefit'

Many older workers confuse the 'Labor Retirement Fund (Labor Retirement)' with the 'Labor Insurance Old-Age Benefit'. The rules regarding re-employment after receiving these benefits differ significantly:

### Labor Retirement Fund (New System)

- **Mechanism**: Employers are legally required to contribute to a personal account. Workers can claim benefits at age 60 (without mandatory resignation). - **Re-employment After Claiming**: Employers are still required to contribute 6% monthly (this is the 'continued contribution retirement fund'). If the worker has not yet claimed Labor Insurance benefits, their Labor Insurance seniority continues to accumulate. Workers over 65 who had Labor Insurance coverage before age 65 and have not claimed benefits may still participate in general Labor Insurance.

### Labor Insurance Old-Age Benefit

- **Mechanism**: Part of the Labor Insurance system. Starting in 2026, the statutory claiming age rises to 65 (those with 15+ years of service may claim up to 5 years early with a 4% annual reduction). - **Re-employment After Claiming**: Claiming requires resignation and withdrawal from insurance. After claiming, the worker cannot rejoin general Labor Insurance, and prior seniority is settled. However, upon re-employment, the employer must still enroll the worker in 'Labor Occupational Injury Insurance' to protect workplace injury rights.

In short, receiving Labor Retirement Fund benefits at age 60 does not affect employment rights or the continued 6% monthly contributions. Individuals planning retirement or re-entering the workforce should carefully assess their financial needs and leverage the continued contribution mechanism to secure their later years.