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

167 NTU Management Review Vol. 29 No. 2 Aug. 2019 If labor workers decide to contribute an additional 6% of their salary to their occupationally defined contribution pension schemes, they may receive a much higher total amount than civil servants with the same salary. Also, the total retirement money’s worth ratios for the civil servants and workers are similar. More significantly, our results indicate that intergenerational inequity has a stronger financial influence on pension reform than inconsistent pension benefits between occupations. Another challenge of the financial sustainability of pension schemes is underfunded liability. However, the underfunded liabilities for most pension funds are too large to be fixed by a single-factor pension reform method. Not only should the fund investment return rate increase, pension payments should be adjusted by the multi-factors pension reform method. Therefore, authorities should quickly adopt a multi-factor reform approach to implement reform policies, resolve intergenerational inequity, and establish a sustainable pension system. The government should also provide a policy white paper indicating policies for the creation of financially sustainable pension systems and establish a dynamic adjustment mechanism for the premium and contribution rates according to the demographic structure. Approving an immediate one-time capital financial subsidy into pension funds is the solution to solve intergenerational inequity. In the long run, the government should develop an early underfunding warning system and monitor the funding ratio of the pension system. Moreover, individuals should be encouraged to contribute more to their occupational pension schemes and increase their retirement savings.