Veteran Pensions in Taiwan Hit by a 20% Cut
After a heated debate and a fierce protest stir, Taiwan’s parliament has passed a pension reform bill that will slash veteran stipends by more than one-fifth over the next decade.
What the Bill Actually Does
- Senior veterans will see an initial drop, followed by a 10‑year trajectory that ends far below the current level.
- The province plans less severe cuts for lower‑rank veterans, so retirees with fewer service years will feel the pinch less.
- The reform is part of a broader effort to avert a looming pension crisis that could see Taiwan’s pension fund bankrupt by 2020.
How It Afters Veterans
To put it plainly: a former lieutenant‑colonel could see his monthly stipend drop from Tw$70,797 to about Tw$69,353 right away, and then to a low‑six‑figure figure—around Tw$56,360—once the ten‑year clock ticks.
Political Backlash
The move has sparked a string of protests. Thousands have marched outside parliament, and on April 15 a tense standoff erupted—police and reporters took bruises when demonstrators splashed smoke bombs and tried to break gate chains.
President Tsai’s Take
Tsai Ing‑wen, who has been championing pension reform for two years, said the crisis has been “overcome.” In a Facebook post she justified the changes by admitting: “I’ve gotten bombarded with criticism, and that’s exactly why the old guard were hesitant—and now it’s on me to start the reform.”
What’s Next
- Both the veteran and civil‑service reforms will kick in on July 1.
- The DPP’s victory in 2016 ended the KMT’s parliamentary majority, lining up the new government’s push for austerity.
- In an era of an ever‑slower economy, hard‑earned public sector posts are pulling in more workers, putting a heavier load on state finances.
In short,. veterans are braced for a stubborn dip in their paychecks, but the government insists this slide is a necessary step toward a healthier, more sustainable pension system for all.
