Considering the problems of the fast aging of population and the heavy burden of the next generation to raise the elder people, the ¡§Implementation Rules of the Labor Pension Act¡¨ law was put into practice in July 1st, 2005 to release the heavy load of the next generation. The law changed the older system ¡§defined benefit pension plan¡¨ into a new system ¡§defined contribution pension plan¡¨ to slow down the problems of aging of population. Nevertheless, there were so many controversial issues about the enactment not passing the draft plan of setting up the supervisory committee of the Fund of the Labor Pension. The amount of the Labor Pension one can obtain when retiring is related to the operation of the Fund of the Labor Pension. However, now the money is putting in the bank and not doing any effective investment. This makes us start wondering if we can get our pension on time or the insufficient part of labor pension will become a heavy burden of the next generation. It can be a big issue for government in the future. In this research we will discuss the general situation of the pension scheme and the operation of the fund of pension to analyze the legal problems of draft plan in setting up the supervisory committee of the Fund of the Labor Pension. The results show that the main drawbacks of the draft plan right now are: the problems of adopting the system of Incorporated Administration, lacking the supervisory committee of labor organization and undefined responsibility of the supervisory committee. Also, the injustice of the modern pension plan is discovered in our research. We hope that this study can provide an excellent direction to improve the system.

The system of Labor Pension in Taiwan deeply influences every class of labor and its intention and regulation of retirement system also affects to operation of government financial budget. The study aims to discuss the trend toward fewer children and the population aging which are somehow affecting forward finance perspective of holistic Labor Pension Fund. Especially, we confront an unbalance situation of population structure, how it reflected the contribution income of labor pension fund and its disbursement of pension payment and how it associated to operation of Labor Pension Fund. In addition, the government should be realized how to deal with the development of population in the future, gear up for designing a better supplementary measure. Therefore, the study will be analyzed with aspect of finance on the population aging phenomenon and how birth rate decline affect toward the New Labor Pension System and Old Labor Pension System. Hopefully, the study results can benefit our labor retirement policy. The study results as follows: A. For the trend toward fewer children, in the short term, the evidence shows that it is unclear either on contribution of the New Labor Pension System or Old Labor Pension System. However, in the mid- and long term, the contribution of fund will be gradually affected, beginning to decrease slowly with the contribution. B. For the population aging phenomenon, Old Labor Pension System on payment from fund indicted that incomes are much more than disbursements so it won¡¦t be a burden on Old Labor Pension Fund. On the contrary, due to different payment regulation between New Labor Pension System and Old Labor Pension System, the population aging is irrelevant to disbursement of New Labor Pension.