Taipei: The government will seek a ruling from the Constitutional Court on the constitutionality of a bill passed by the Legislature that rolls back some of the pension reforms introduced in 2018, President Lai Ching-te announced. Lai promulgated the bill but included an annotation arguing it was unconstitutional due to the financial implications and its impact on fiscal sustainability and generational justice.
According to Focus Taiwan, the bill would require taxpayer funds to cover shortfalls in the public service pension system, which President Lai contends would infringe on the Cabinet's authority to formulate the general budget. The legislation was pushed through by opposition Kuomintang (KMT) and Taiwan People's Party (TPP) lawmakers, partially reversing pension cuts for civil servants and public school teachers, while halting planned reductions through 2029.
The Ministry of Civil Service has warned that restoring income replacement ratios to their 2023 levels would deplete pension funds for civil servants by 2045 and for public school teachers by 2042, which is sooner than previously projected. Minister without Portfolio Lin Ming-hsin described the Cabinet's move to seek constitutional interpretation as a "legal and constitutional measure," and stated petitions for an injunction and interpretation would be filed next week.
This legal maneuver faces challenges as the Constitutional Court's status is uncertain. Opposition-controlled Legislature passed a December 2024 amendment requiring substantial participation from justices in rulings, but the court currently has only eight justices. Five justices recently ruled the December legislation unconstitutional, while three did not participate, leading to legislative backlash and a motion condemning the justices.