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

191 NTU Management Review Vol. 29 No. 2 Aug. 2019 Portability of Social Security Pension in Taiwan English Summary Taiwan’s pension system follows the logic of the Bismarck model. People in different occupational groups join different public and occupational pension schemes. When people change jobs, they might be required to shift to a different pension scheme. Thus, developing effective measures to protect employees’ pension entitlement when they change to different schemes is crucial, and hence, the portability of pension schemes has become a critical topic. This paper systematically reviews the portability of Taiwan’s public and occupational pension schemes. The primary purpose is to compare the various portable strategies employed by different schemes and identify their weaknesses. This paper follows a policy analysis approach. First, the concept and historical background of pension portability are introduced. Second, alternative approaches for achieving pension portability are compared. Third, measures for achieving pension portability in selected countries are compared. Finally, different designs for the portability of Taiwan’s public and occupational pension schemes are analyzed with a special focus on their inconsistencies and limitations. Pension portability implies that individuals can preserve their accumulated pension rights after they leave their current pension plans to join other schemes. Three measures exist for achieving pension portability, which are the portability of (1) benefits, (2) services, and (3) assets (Andrietti, 2001b; Foster, 1994; Koldrubetz, 1968; Turner, Doescher, and Fernandez, 1993). Portability of benefits means that employees have vested rights after they shift pension schemes; their pension entitlements are preserved, and they can claim their vested benefits when they reach pensionable age. Portability of services means that employees’ years of service for their previous employers are taken into account when their eligibility for and benefits of pensions are considered. Portability of assets means employees’ accumulated pension rights are transferred to their new pension schemes. Pension portability is more challenging for defined-benefit plans compared with defined-contribution ones. Moreover, achieving portability for unfunded or partially funded defined-benefit pension plans is even more difficult. Tsung-Hsi Fu , Department of Social Work, National Taiwan University Shih-Jiunn Shi , Graduate Institute of National Development, National Taiwan University Hung-Yang Lin , Department of Social Work, National Pingtung University of Science and Technology