According to the government statistics office, the various levels of government in Taiwan have together accumulated seven trillion Taiwan dollars in debt and 17.14 trillion in liabilities as of the end of 2013. Finance Minister Chang Sheng-ford said on Monday that the NT$17.14 trillion is mostly in pension liabilities, but there are several pension reform plans under review at the legislature which would reduce that figure.
“We want to reform the pension schemes in four areas, including adjusting payment and payout rates, extending the retirement age, and raising pension fund efficiency," said Chang. "[It’s only when the measures don’t work] that the liabilities become government debt.”
Chang said that pension reforms will prevent the liabilities from turning into debt in the next 20 to 30 years. At that time, he said, the government could propose more reforms. Therefore, he said, the fiscal problems are not as serious as the public may think.