臺大管理論叢 NTU Management Review VOL.29 NO.2

One potential problem in Taiwan’s pension system is the lack of portability because people in different occupational groups have participated in different schemes. To address this issue, Fu, Shi, and Lin discuss the concept and historical development of pension portability. They find that substantial differences between current pension schemes exist in terms of vested regulations for early leavers and portability of service. Moreover, defined- benefit and defined-contribution schemes employ different strategies for pension portability. Finally, they recommend that Taiwan’s pension plans should use vesting rights, service portability, and assets portability to improve the overall portability of pensions. The third paper by Tung, Lin, and Lee, first reviews the pension-related literature and investigates the reform experience in selected developed economies. Based on the findings of the above review, they then suggest a member-choice management platform with the following characteristics: (1) one pension account only for every employee for management convenience; (2) a management structure offering both private services and government services with a guarantee of two-year deposit returns; (3) automotive enrollment with a default savings rate of 3% and automotive escalation linking saving increases to pay increases; (4) raising the savings rate limit from 6% to 12% with no tax benefit for savings above 6%; and (5) target date funds as the default funds by applying life-cyle investment theory to make asset allocation for employees with different retirement dates. Finally, to increase both pension enrollment rates and savings rates, they suggest that the government can refer to the Save More Tomorrow (SMT) program, proposed by Thaler and Benartzi (2004), to design Taiwan’s member-choice management platform. The other three papers in the special issue study the effects of pension reforms. The fourth paper by Wang, Huang, Chen, and Cheng, investigates the financial effects and intergenerational inequity of pension reform in Taiwan. Their analyses focus on three important aspects, including (i) inconsistent pension benefits between occupations, (ii) intergenerational inequity, and (iii) unsustainability of pension funding. Their results suggest that intergenerational inequity (difference of money’s worth ratios between generations) is more severe than inequity between different occupations. Based on the findings, they urge that government should quickly implement pension-reforming policies to resolve the intergenerational inequity and establish a sustainable pension system.