Taiwan Ministry of Labor advises on protecting retirement pensions from debt seizure

The Ministry of Labor has issued guidance to help workers protect their retirement savings from being seized by creditors due to personal debt or legal disputes. While the Labor Pension Act stipulates that retirement pension rights cannot be transferred, offset, or seized, funds deposited into standard commercial bank or postal accounts may still be subject to compulsory execution if the account holder faces debt issues.

To prevent this, the Ministry recommends using a specialized seizure-exempt account mechanism. Workers can follow a three-step process: first, apply for a certification document from the Bureau of Labor Insurance specifying the use of a dedicated account; second, present this document along with identification to designated financial institutions, such as the Land Bank of Taiwan or Chunghwa Post, to open the account; and third, have the pension funds deposited directly into this protected account.

Funds held in these specialized accounts are legally protected from seizure, offset, or use as collateral, ensuring that retirement savings remain available for the individual's old-age support. The Ministry encourages workers facing financial pressure to utilize these legal safeguards to secure their economic stability in retirement.