Pension Back Payments for Retired Military, Civil Servants, and Educators Not Implemented? Latest Reassessment Disbursement Schedule Overview – Li Lai-hsi Speaks Up for 'This Category of Civil Servants'

Eight years after the launch of the military, civil servant, and educator pension reform (Nian Gai) in 2018, a major shift occurred at the end of 2025 when the 'halt pension cuts' bill passed its third reading. The amendment means approximately 180,000 retired civil servants and educators are entitled to back payments for 'pension shortfalls.' After the first batch was credited in August, the second batch is expected to begin monthly disbursements from September based on reassessment results.

Li Lai-hsi, former chairman of the National Association of Public Employees, recently announced that the next phase of advocacy will focus on ending the '10-year declining salary replacement rate policy.' On the 11th, he lamented on Facebook that compared to other state-owned enterprises, the government has treated Taiwan Railway Administration employees unfairly, noting that even the back payment and suspension of pension deductions for this group won't take effect until October.

Are pension shortfall back payments still not implemented?

Li shared that his civil service peers include many hidden talents. A retired friend from the railway bureau immediately helped repair his home's iron gate, showcasing exceptional skill and versatility. He expressed regret that railway employees' salaries, benefits, and treatment lag significantly behind those of other state-owned enterprise workers. 'The nation truly owes our railway employees,' he said, emphasizing that even the back payment and suspension of pension deductions won't be implemented until October 1.

After the 2026 over-deducted pension amounts are credited, Li emphasized that in addition to unresolved 2024 and 2025 pension shortfalls, the next phase of advocacy will be to end the 10-year declining salary replacement rate policy.

What is the salary replacement rate standard after the 'halt pension cuts' amendment?

On December 12, 2025, the Legislative Yuan passed third readings of amendments to Article 37, 38, and 67 of the Public Servants Retirement, Displacement, and Pension Act and the Public School Staff Retirement, Displacement, and Pension Ordinance. The president promulgated the amendments on December 26, effective December 28. Since the pension reform officially launched on July 1, 2018, public servants' and educators' salary replacement rates had gradually decreased from a maximum of 75% to 60% (declining 1.5% annually). After the amendment, the maximum retirement salary replacement rate for civil servants and public school staff will revert to the cap applicable in 2023 (Minguo Year 112), and the annual reductions scheduled from 2024 (Minguo Year 113) onward are no longer applicable.

What is the schedule for pension shortfall back payments?

As a result, the amendment has created a 'pension shortfall' issue. Some retirees had been receiving monthly pensions based on the reduced replacement rates. After the law took effect, the competent authority must reassess retirement benefits. According to an announcement by the Public Servants Retirement and Pension Fund Administration, the first batch of reassessment cases—covering the shortfall in new-system monthly pensions from December 28, 2025, to July 31, 2026—was deposited on July 31. From August 1 onward, monthly pensions will be paid based on the reassessed amounts.

Could public servant pensions be 'adjusted'?

The second batch targets civil servants whose retirement was approved after March 28, 2026, and educators whose retirement was approved after March 1, 2026. The shortfall has been back-paid through August 31, and from September 1, monthly payments will follow the reassessment results. Additionally, the amendment not only 'halts reductions' in the salary replacement rate but also involves future pension adjustment mechanisms. The amended Article 67 stipulates that monthly pensions, monthly condolence payments, or survivor annuities must be adjusted according to the cumulative growth rate when the Consumer Price Index (CPI), published by the Directorate General of Budget, Accounting and Statistics, reaches a positive 5%. Even if the 5% threshold is not met, a review must occur at least every four years to determine whether an appropriate adjustment is needed.

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