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

93 NTU Management Review Vol. 29 No. 2 Aug. 2019 3. Findings The results indicated that the extensions of service time for retirement in field grades (major, lieutenant colonel, and colonel) and major general, and the extensions of time in grade for promotion in company grades (second lieutenant, lieutenant, and captain) will increase most ranks’ promotion prospects. For example, the promotion prospect for major to lieutenant colonel increases from 52.8% to 55.9%, and for lieutenant colonel to colonel from 46% to 50.3%. However, the future payment of the officers’ retirement pension has not been reduced. In contrast, it has been theorized to increase 0.29%. The results do not show the reduction of officers’ future retirement pension payment as expected. One of the reasons is that the extension of service time for retirement may reduce the number of retired officers as they retire at the mandatory retirement age (maximum service time in a grade), but it may also increase the number of retired officers as they retire before the mandatory retirement age. The number of retired officers reduced due to mandatory retirement could be less than the number of officers increased by choice. Another reason is that because of the increasing of the length of service time, the officers’ average retired pay is also increased. 4. Research Limitations/Implications An officer’s retired pay is a function of the basic pay of the grade at retirement, the multiplier, and the years of service at retirement. The multiplier is the percentage of the basic pay of the grade at retirement. In the current system, the multiplier is 2%. The Defense Ministry can apply the EMMOFPP to design retirement payment policies such as the multiplier of the basic pay at retirement to be changed to 2.5%, and the basic pay to be changed to a higher or lower pay compared to the current system. By using the EMMOFPP, we can understand how these changes increase or decrease officers’ future retirement payment. 5. Originality/Contribution Most literature discussing annuity systems is only thinking from the financial aspect and ignores the impact on the manpower facet. This study has filled this research gap. The main contribution of this study is to establish two theoretical models, MSSCSM, and EMMOFPP. By using these models, the defense of manpower department is able to design manpower policies that vary each grade’s minimum time for promotion, maximum time