Individual pension payouts ‘cannot be altered’
The Bureau of Labor Insurance reminded pensioners that they cannot alter labor insurance payment methods for old-age benefits once they are approved and issued.
The government established the Labor Insurance Pension in 2009, through which employees can choose different old-age benefits according to their age and qualifications. Applicants can also choose whether they want to receive their pensions in one lump sum or by monthly installments. Yet, once the type of payment is approved it cannot be changed.
Many employees have asked to change to monthly payment, even after they initially opted for the lump sum payment. In order to remind applicants, authorities has revised the application form by highlighting options with boldface type face printed in red, reminding employees to calculate the amount of their old-age benefit through a method provided beforehand.
According to the Bureau of Labor Insurance, the calculation of the single payment of the old-age benefit has helped over 3.47 million people, using the applicants’ accumulated insurance and their average monthly insurance salary after retirement to conclude the lumpsum benefit. This will help them arrive at their decision before they submit their application.
Yet many employees still regret their decision after they have sent old-age lump sum benefit applications, the bureau stated.
Starting from June this year, people who leave their cellphone numbers on the lump sum benefit application will receive a text mes- sage from the bureau. The text messages remind applicants they have applied for a single payment benefit and cannot be changed, to let people think about whether their choices meet their demands. If they want to change their decision, they must call the bureau within seven days after receiving the text to change payment measures.
According to statistics collected up to July, over 10,000 employees have received text messages reminding them to choose the type of payments of insurance pensions carefully.