Collection and Seniority Settlement for Severance Payment by Faculty and Staff Members (Severance) Seniority Settlement (Note 1)



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Severance Benefits Fund 1. Old System: On or before December 31, 2009 2. New System: On or after January 1, 2010 (Managed by CTBC Bank Co., Ltd.) Collection Seniority Settlement for Severance Payment by Faculty Staff Members (Severance) Contributions Old System: Fund is calculated based on the years of service. New System: 1. Personal Contribution 2. Contribution by Schools 3. Contribution by the Collection of Severance Payment Choosing to collect the payment: ( fund accumulated under both the old new systems) Choosing not to collect the payment now: 1. fund accumulated under both the old new systems 2. If you choose not to collect the payment now, you are not entitled to receive the payment until you reach the age of 60. Seniority Settlement (Note 1) seniority (accumulated under both the old new systems) should be paid off. seniority (accumulated under both the old new systems) should be paid off. If you teach at another private school in the future, how will your seniority/ Fund be integrated Resignation / Severance / /calculated? 1. seniority accumulated at the previous school has been paid off. 2. After you are recruited appointed by another school, the seniority should be counted beginning from the date of assumption of duty, the new system should apply. Legal Basis Article 23 of Act Governing the,, Discharge with Severance Pay Benefits for the Teaching Other Staff of School Legal Persons ir Respective Private School(s) Article 25 of Act Governing the,, Discharge with Severance Pay Benefits for the Teaching Other Staff of School Legal Persons ir Respective Private School(s)

Employee School Staff Insurance (GESSI) Old-Age Benefit (Dept. of Employee Insurance, Bank of Taiwan) 1. Personal Contribution 2. Contribution by Schools 3. Contribution by the Choosing to collect the payment Choosing not to collect the payment now: You have to apply to the last employer for collecting the payment within ten years of the date of withdrawal from the GESSI. seniority should be paid off. seniority will be reserved. Resignation / Severance / Resignation / Severance / seniority accumulated at the previous school has been paid off, the seniority should be counted beginning from the date of assumption of duty at another school (Note 3). seniority will continue. Article 67 of Enforcement Rules of Civil Servant Teacher Insurance Act Article 67 of Enforcement Rules of Civil Servant Teacher Insurance Act Note 1: old system applies to the seniority accumulated on or before December 31, 2009, while the new system applies to the seniority accumulated on or after January 1, 2010. Note 2 Pursuant to Article 16 of the Civil Servant Teacher Insurance Act, the old-age benefit shall be given to the insured who a) retires in accordance with the law, b) is laid off or c) has paid the insurance premiums for fifteen years, withdraws from the Insurance at the age of fifty-five or older. Note 3: For the insured who has retired in accordance with the law received the old-age benefit from the GESSI, if he/she returns to the original position re-takes out the GESSI after the enforcement of the amendments to the Civil Servant Teacher Insurance Act dated June 1, 2014, he/she should pay 67.5% of the GESSI premiums every month, while the rest of the premiums (32.5%) are paid by the school where he/she works. Note 4: amount of the Fund contributed every month is equal to 12% of a faculty/staff member s monthly salary. monthly premiums for GESSI Old-Age Benefit are equal to 8.25% of a faculty/staff member s monthly salary. Note 5: Contribution Percentage: 35% by individuals, 32.5% by the school, 32.5% by the government.

Resignation (Note 2) Benefits Fund Old System: On or before December 31, 2009 Fund New System: On or after January 1, 2010 (Managed by CTBC Bank Co., Ltd.) Collection Seniority Settlement for Resignation Payment by Faculty Staff Members (Resignation) Contributions Fund is calculated based on the years of service. 1. Personal Contribution 2. Contribution by Schools 3. Contribution by the Collection of Resignation Payment payment cannot be collected. Choosing to collect the payment Seniority Settlement seniority will be reserved. seniority should be paid off. If you teach at another private school in the future, how will your seniority/ Fund be integrated/calculated? No Resignation Fund under the old system can be applied for. 1. You may apply for the Fund under the old system. 2. seniority accumulated at the previous school can be calculated together with that accumulated at the new school. 1. seniority has been paid off. 2. After you are recruited appointed by another school, the seniority should be counted beginning from the date of assumption of duty, the new system should apply. Legal Basis Article 24 of Act Governing the,, Discharge with Severance Pay Benefits for the Teaching Other Staff of School Legal Persons ir Respective Private School(s) Articles 24 25 of Act Governing the,, Discharge with Severance Pay Benefits for the Teaching Other

Choosing not to collect the payment now: 1. seniority accumulated at the previous school can Staff of School Legal Persons 1. be calculated together with ir Respective Fund under seniority that accumulated at the new Private School(s) the new system will be school. 2. You are not entitled to reserved. 2. seniority accumulated receive the payment until you reach the age of 60. under the new system will continue. Article 67 of seniority should be Employee Enforcement Rules Choosing to collect the seniority counted beginning from the School Staff of Civil Servant payment should be date of assumption of duty at Insurance 1. Personal Teacher Insurance (GESSI) Contribupaid off. another school (Note 3). Act tion Old-Age Benefit 2. Contribu- (Dept. of tion by Choosing not to collect the Schools payment now: Article 67 of 3. Contribu- Employee You have to apply to the last Enforcement Rules tion by the seniority Insurance, Bank Govern- employer for collecting the seniority will continue. of Civil Servant will be of Taiwan) ment payment within ten years of Teacher Insurance reserved. See Note 2 the date of withdrawal from the Act for application GESSI. requirements. Note 1: old system applies to the seniority accumulated on or before December 31, 2009, while the new system applies to the seniority accumulated on or after January 1, 2010. Note 2 Pursuant to Article 16 of the Civil Servant Teacher Insurance Act, the old-age benefit shall be given to the insured who a) retires in accordance with the law, b) is laid off or c) has paid the insurance premiums for fifteen years, withdraws from the Insurance at the age of fifty-five or older. Note 3: For the insured who has retired in accordance with the law received the old-age benefit from the GESSI, if he/she returns to the original position re-takes out the GESSI after the enforcement of the amendments to the Civil Servant Teacher Insurance Act dated June 1, 2014, he/she should

pay 67.5% of the GESSI premiums every month, while the rest of the premiums (32.5%) are paid by the school where he/she works. Note 4: amount of the Fund contributed every month is equal to 12% of a faculty/staff member s monthly salary. monthly premiums for GESSI Old-Age Benefit are equal to 8.25% of a faculty/staff member s monthly salary. Note 5: Contribution Percentage: 35% by individuals, 32.5% by the school, 32.5% by the government.

Act Governing the,, Discharge with Severance Pay Benefits for the Teaching Other Staff of School Legal Persons ir Respective Private School(s) Please visit the Laws Regulations Retrieving System of the Ministry of Education for more details. Website: http://edu.law.moe.gov.tw/englawquery.aspx Chapter V Severance Resignation Article 22 If any of the circumstances listed below pertain to a staff member, that person does not meet the conditions for retirement, the private school may carry out the procedures to pay the staff member severance in accordance with applicable laws regulations. However, severance to a principal (president) shall be paid by the school foundation; when necessary, the school authority may order it to make payment. 1. No work is available for the staff member in his or her current position no other appropriate job is available, because of adjustments to departments, graduate institutes, subjects, divisions, or curricula, or reduction in the number of classes, suspension of operations, or dissolution of the school. 2. staff member is unable to competently perform his or her duties because of physical or mental disability, verified by a certificate issued by a hospital that meets or exceeds the hospital assessment stards set by the central competent heath authority. 3. quality of the staff member s work in his or her current position, as reviewed verified by the school s instructor evaluation committee, consistently fails to meet teaching stards. 4. staff member has been placed under a declaration of guardianship (or before 22 November, 2009, placed under a declaration of interdiction) or a declaration of assistance, which has not been voided. Article 23 Staff severance payments shall be calculated using the stard for lump-sum payments. A staff member who resigns without meeting the requirements for retirement or severance pay may collect the principal interest in his or her individual Fund in a lump sum. However, a staff member who has exploited an opportunity offered by his or her position to commit a crime has been convicted sentenced may collect only the principal interest from his or her own contributions to the Fund. Article 24 If during his or her period of employment, a staff member exploits an opportunity offered by his or her position to commit a crime, as referred to in the provision of the preceding paragraph, if the person has been convicted sentenced only after a pension or severance pay has already been paid to the staff member in accordance with the provisions of this Act, the staff member shall pay back the principal interest paid to him or her from the contributions of the private school the school authority.

With the exception of any person who has exploited an opportunity offered by his or her position to commit a crime has been convicted sentenced, as referred to in the preceding paragraph, a staff member who meets the requirements for a pension or severance pay is entitled to refrain from collecting his or her duly approved pension or severance pay, in which event, upon the date the person reaches the age of 60, the Fund Management Committee will pay the principal interest of any resignation or severance pay that the person has not yet collected, or the person may be enrolled in annuity insurance by the application, mutatis mutis, of Paragraph 3 of Article 20. Article 25 If a person referred to in the preceding paragraph dies before reaching the age of 60, the principal interest of any resignation or severance pay that the person has not collected shall be paid by the Fund Management Committee to the person s survivors in a lump sum. hling of the scope, order, proportional claims of the survivors referred to in paragraph 1 shall be governed by the Civil Code. hling of the scope, order, proportional claims of survivors of a person who has been enrolled in annuity insurance referred to in Paragraph 1 shall be as stipulated in the annuity insurance contract; if no provision is made in the contract, the hling of such matters shall be governed by the Civil Code. Enforcement Rules of Civil Servant Teacher Insurance Act Old-Age Benefit Please visit the Laws & Regulations Database of the Republic of China for more details. http://law.moj.gov.tw/eng/