Chapter I General Principles
Article    1     
This statute has been formulated to protect the retirement,
bereavement compensation, resignation, and severance pay
rights and interests of the staff of school foundations
(which are referred to as “legal persons” in the title
of this Act) and their private schools, and to promote the
sound development of private schools (including post-secondary
level colleges and universities).
Article 2 
In this Act the term “competent authority” refers to:
the Ministry of Education at the central government level;
the municipal government at the special municipality level;
and the county government or county-level city government
at the county or county-level city respectively.
Article    3     
In this Act the term “staff” refers to the paid,
full-time, currently employed principal (president),
teachers, and other staff employed within the establishment
staffing of a registered private school, and staff of
school foundations.
The “staff of school foundations” referred to in the
preceding paragraph is restricted to those staff members
 employed within the establishment staffing number of a
private school established by a school foundation.
Article    4     
Retirement, bereavement compensation, resignation, and
severance payments for the staff of school foundations
and their private schools shall be made through a fund.
The staff, private schools, and competent school
authority shall jointly contribute money on a monthly
basis to establish a Retirement, Bereavement Compensation,
Resignation, and Severance Fund (hereafter referred to as
“the Retirement and Compensation Fund”), from which such
payments shall be made.
The central competent authority shall, in consultation with
relevant agencies, assist private schools, school
foundations, and staff representatives to form the ROC
Private School Staff Retirement and Bereavement Compensation
Fund Management Committee (hereafter referred to as “the
Fund Management Committee”) and delegate it to handle
Retirement and Compensation Fund revenue and expenditure,
management, utilization, and deliberations, and to review and
make final decisions regarding retirement, bereavement
compensation, resignation, and severance matters. Not less
than one-third of the Fund Management Committee shall be staff
representatives and expert representatives recommended by
staff. The central competent authority shall also consult
with relevant agencies and form a Private School Retirement
and Bereavement Compensation Fund Supervisory Committee, to
be responsible for the supervision and review and assessment
of the Fund.
Once the Fund Management Committee has been established, the
management committee of the former ROC Private School Teacher
and Staff Retirement and Compensation Fund that was
established in accordance with the provisions of the Private
School Act (hereafter referred to as “the former private
school retirement fund”) in place before this Act took
effect shall be incorporated into it, after which it shall
take on all the rights and obligations of the former fund
management committee.
The Fund Management Committee shall set up a school fund
reserve account for each private school, and set up individual
Retirement and Compensation Fund accounts for staff members.
A school foundation and its private school(s) are not
permitted to determine their own retirement, bereavement
compensation, resignation, and severance provisions and use
those instead of the retirement, bereavement compensation,
resignation, and severance system set out in the provisions
of this Act.
Regulations governing the organization, meetings, and
administration of the Fund Management Committee and of the
Supervisory Committee referred to in Paragraph 2 and other
related matters shall be prescribed by the central competent
authority.
Article    5     
When a staff member applies for retirement, bereavement
compensation, resignation, or severance payments, that staff
member or his or her survivors shall complete an application
form and attach appropriate documentary evidence and receipts,
and submit these to the employing school. The school shall
compile the application documents and forward them to the Fund
Management Committee which shall review and decide whether to
give approval within 2 months from the day following its
receipt. If necessary, the time limit may be extended and
the applicant will be notified about this. Only one extension
may be granted, and the extension may not exceed one month.
Article    6     
The right of a staff member or his or her survivors to lodge
a claim for any payment in accordance with the provisions of
this Act is not permitted to be attached, assigned, or provided
as security.
Article    7     
The right to lodge a claim for payment of retirement money,
bereavement compensation, or a severance payment for years
of service before this Act took effect is extinguished ipso
facto if not exercised within 5 years from the date that such
a claim becomes exercisable.
　 Chapter II Contributions to the Retirement and Compensation Fund
Article    8     
Within 2 months from the beginning of each semester, private
schools shall make staff retirement, bereavement compensation,
resignation, and severance reserve fund contributions to the
Fund Management Committee in accordance with the following
provisions:
1. Private schools at the senior secondary school level and
   above (i.e. including private colleges and universities):
   contribute an amount equivalent to 3 percent of tuition.
2. Private elementary schools and private junior high schools:
   contribute an amount equivalent to 2.1 percent of
   miscellaneous fees.
The Fund Management Committee shall remit two-thirds of the
contribution amount specified in the preceding paragraph into
the school fund reserve account of each particular private
school, to act as a reserve for its monthly contributions to
the Fund to be made in accordance with the provisions of this
Act. The remaining one-third shall be remitted into the former
private school retirement fund to be used to pay the retirement,
compensation, and severance payments that teachers and other
staff are entitled to based on their years of service before
this Act took effect.
If a private school fails to make a contribution by the
deadline stipulated in Paragraph 1 or does not contribute
the full amount, a late payment fee of 3 percent of the
overdue contribution amount will be imposed each day from the
day following the expiration of the deadline until the day
before the contribution is made in full, up to a maximum
equivalent to double the contribution amount. The revenue from
late payment charges shall go into the school fund reserve
account of that private school.
The amount of money jointly contributed in accordance with the
provisions of Article 4, Paragraph 1 shall be equivalent to
12 percent of double the staff member’s base salary (based on
seniority), with the respective proportions of the joint
contributions to be paid into each individual’s Retirement
and Compensation Fund account each month set out below:
1. The staff member shall contribute 35 percent.
2. The school fund reserve account shall contribute 26 percent.
3. The private school shall contribute 6.5 percent.
4. The competent authority for the school shall contribute
   32.5 percent.
If there is any shortfall in the contribution referred to in
Subparagraph 2 of the preceding paragraph, the private school
shall pay the difference.
The contribution referred to in Paragraph 4, Subparagraph 3
may first be remitted out of the reserve funds in the school
fund reserve account. At the end of each semester any surplus
remaining in the school fund reserve account may be paid into
each individual’s Retirement and Compensation Fund account in
a lump sum payment on a pro rata basis, based on each private
school staff member’s base salary (based on seniority) and
weighted according to the number of days he or she worked
during that semester.
The responsibility of the competent school authority to make
the contributions stipulated in Paragraph 4, Subparagraph 4
shall be limited to a maximum of 35 years. But the
contributions may be made for a maximum of 40 years for a
teacher or principal (president) who has been employed for a
full 35 years, held a position as a staff member for 30 years,
been continuously employed as a teacher or principal (president)
for the preceding 5 years or more at the time of his or her
retirement, and has a good performance record. For any years
of service that exceed the maximum limit, the remainder of the
contribution amount due apart from the individual contributions
made by the principal (president) or teacher shall be made by
the private school.
When a civil servant, educator, government worker, member of
the military forces, someone who worked in a public enterprise,
or another government position who has already received a
retirement (or discharge) pension or payment transfers to a
teaching or other staff position in a private school, the
private school shall bear responsibility to make the
contribution of the competent school authority stipulated in
Paragraph 4, Subparagraph 4.
If a staff member has been employed less than a full month,
the contribution to be made is calculated from the person’s
actual salary income as follows: take the base salary (based
on seniority) at that staff member’s pay level, divide it by
the number of days in that month, and multiply the resulting
figure by the actual number of days he or she has been employed.
A staff member who considers that an error has been made by
the employing school regarding the period of service or
calculating the contribution amount shall raise an objection
with the employing school within one month from the
contribution date, and request an alteration.
The amount contributed by a staff member in accordance with
Paragraph 4, Subparagraph 1 shall not be counted as part of
his or her taxable salary in the contribution year.
The retirement, severance, and bereavement compensation
payments for a staff member’s years of service before the
Retirement and Compensation Fund was established shall be paid
from the former private school retirement fund. If there is
any shortfall, it may be paid by the competent school authority,
through a budget allocation, or an annual adjustment within the
scope of the annual budget. This is not subject to the
restrictions of the provisions of Articles 23, 62, and 63 of
the Budget Act.
When there are no longer any teaching or other staff members
employed at any private or public school who had any years of
service at a private school before this Act took effect, the
Fund Management Committee shall remit the full amounts of the
contributions made by private schools into the school fund
reserve accounts of the respective private schools in
accordance with the provisions of Paragraph 1, and each private
school shall take measures in accordance with the provisions of
Article 9.
Article    9     
A private school, taking into consideration its financial
situation and the school’s major development objectives, may
increase its contributions to the retirement, bereavement
compensation, resignation, and severance pay reserve funds for
its staff. If a staff member makes corresponding contributions
to the reserve fund, the amount of such additional contributions
that does not exceed the amount referred to in the provisions
of Paragraph 4, Subparagraph 1 of the preceding article shall
also not be counted as part of his or her taxable salary in the
contribution year.
Any increased contributions to the retirement, bereavement
compensation, resignation, and severance pay reserve funds and
to the staff reserve funds made in accordance with the preceding
paragraph shall be fully disclosed in financial statements, and
the Fund Management Committee may be delegated to handle matters
pertaining to their revenue and expenditure, management, and
utilization.
Article   10     
The Fund Management Committee shall examine and consider the
size of the Retirement and Compensation Fund created in
compliance with the provisions of Article 8, and design a range
of investment portfolios with different returns and risks for
staff to choose from. The implementation regulations governing
this shall be prescribed by the central competent authority.
Before the offering of a choice of investment portfolios
referred to in the preceding paragraph is implemented, the
Retirement and Compensation Fund shall be uniformly managed and
utilized by the Fund Management Committee.
The return on the Fund during the period of its uniform
management and utilization, and the return on an investment
portfolio that the Fund Management Committee has rated as having
the lowest level of risk after offering a choice of investment
portfolios is implemented are not permitted to be lower than
the 2-year term deposit rate of local banks. If any shortfall
occurs, it shall be made up in full by the National Treasury.
If, after deducting the principal paid into the fund by the
staff member and the interest it has earned, the retirement
pay, bereavement compensation, or severance payment received
by a staff member for years of service after this Act took
effect is lower than the standards governing the calculation
of retirement pay, bereavement compensation, or severance pay
for any years of service before this Act took effect, each
respective competent authority shall make up the difference.
Article   11     
If the competent school authority or a private school fails to
make monthly contributions to the Retirement and Compensation
Fund for its staff in accordance with the provisions of this
 Act, or fails to contribute the required amounts in full,
thereby causing any staff member to suffer a loss, it shall be
liable for damages. This shall not apply, however, if the
failure is due to a cause not attributable to the competent
school authority or to the private school.
The right to lodge a claim referred to in the preceding paragraph
shall be extinguished if not exercised within 2 years from the
time that the staff member discovers the loss, and within 5 years
from the time the loss occurred.
　 Chapter III Integration of Different Retirement and
               Compensation Funds
Article   12     
The years of employment of a staff member before and after
this Act took effect shall be calculated in aggregate.
A staff member’s years of service after this Act took effect
shall be limited to those years in which monthly contributions
have been made to the Retirement and Compensation Fund. Years
of service in which contributions have not been made to the
Retirement and Compensation Fund, or years of service for which
retirement pay, a resignation-related refund, or severance pay
have previously been approved and paid, shall all be excluded
from inclusion in the years to be counted.
Except when other provisions in this Act apply, the retirement,
bereavement compensation, resignation, and severance payments
for a staff member for the years of service after this Act took
effect are paid from the cumulative principal and interest paid
into the staff member’s individual Retirement and Compensation
Fund account by the Fund Management Committee out of the
Retirement and Compensation Fund. The same applies for the years
of past employment of public school principals (presidents) and
teachers for whom contributions have been made into the
Retirement and Compensation Fund referred to in this Act and for
whom no retirement payment, severance pay, or resignation-related
refund has yet been approved and paid, or applied for.
The standards for calculating the aggregated years of service
before this Act took effect, and the corresponding retirement
pay, bereavement compensation, and severance payments basis
points and the maximum basis points shall be handled in
accordance with the provisions formerly governing the retirement,
bereavement compensation, and severance payments for private
school staff before this Act took effect. Retirement, bereavement
compensation, and severance payments for years of service before
this Act took effect shall be paid by the Fund Management
Committee out of the former private school retirement fund.
Any years during which a private school principal (president) or
teacher was formerly employed as a paid qualified principal
(president) or teacher within the establishment staffing of a
public school, for which no retirement payment,
resignation-related refund, or severance pay has yet been approved
and paid and for which written verification has been provided by
his or her former employing school, may be included in the person’
s aggregate years of service, and retirement, bereavement
compensation, or severance payments calculated using the approved
rate for his or her years of service, shall be approved and made
in accordance with the provisions below:
1. Years of service at a public school before (and including)
   January 31, 1996: shall be paid by the competent authority of
   the school where the person was last employed.
2. Years of service at a public school after (and including)
   February 1, 1996 shall be paid by the Public Service Pension
   Fund Management Board.
Article   13     
When a person who has already received retirement pay, a
resignation-related refund, or severance pay once again takes
a position as a private school staff member, that person is not
required to pay back the payment already received. When the
person subsequently applies again for retirement, resignation,
or severance pay, or his or her survivors apply for bereavement
compensation, his or her years of service shall be counted
beginning from the month in which the new position was taken.
　 Chapter IV Retirement
Article   14     
Retirement of staff members is divided into voluntary retirement,
age-mandated retirement, and mandatory retirement.
Article   15     
A staff member’s voluntary retirement shall be approved in
either of the following circumstances:
1. The staff member has reached the age of 60.
2. The staff member has been employed for 25 full years.
A private school that is undertaking staff retrenchments in
accordance with ordinances in conjunction with an organizational
restructuring, cessation of its operations, or an amalgamation
may approve voluntary retirement for a staff member who does not
meet the requirements set out in the preceding paragraph but to
whom any of the following circumstances pertain:
1. The staff member has been employed for 20 full years or longer.
2. The staff member has been employed for 10 full years or longer,
   and has reached the age of 50.
3. The staff member has been at the highest seniority pay level
   in his or her position for 3 full years.
The central competent authority may consider lowering the age
stipulated in Paragraph 1, Subparagraph 1 for people whose job
positions have restrictive physical requirements. It is not,
however, permitted to be lower than 55.
Article   16     
When a staff member reaches the age of 65, a private school shall
take the initiative to carry out the procedures for that staff
member’s age-mandated retirement. However, his or her service
may be extended if one of the following circumstances pertains:
1. If the term of appointment of a principal (president) has not
   yet expired, the person may continue to serve in the position
   until the term of his or her appointment ends; the person may
   also continue to serve if re-appointed after that term of
   appointment. However, no extension of an appointment is
   permitted once a person reaches the age of 70.
2. The term of appointment of a professor at a junior college or
   an institution of higher education may be extended based on
   teaching needs, and subject to the person’s agreement to
   continuing his or her service. However, each such extension is
   not permitted to exceed one year, and such extensions may only
   continue until the academic semester in which the person
   reaches the age of 70.
Article   17     
After this Act takes effect, if a private school appoints a
principal (president) or a full-time teacher who is aged over 65
acting in accordance with the provisions of the Private School
Act, the contributions to the Retirement and Compensation Fund
shall all be made by the private school, apart from the
individual contributions made by the principal (president) or
teacher in accordance with the provisions of Article 8, Paragraph
4, Subparagraph 1.
Article   18     
If there is solid evidence that a staff member who has been
employed for 5 years or longer has become unable to competently
perform his or her duties because of a physical or mental
disability, but the person is unwilling to produce a medical
certificate verifying treatment by a hospital that meets or
exceeds the hospital assessment standards set by the central
competent heath authority, then the staff member shall be
ordered to obtain medical treatment, after the private school’s
supervisory personnel and human resources personnel have reported
the matter to the principal (president) and approval has been
given. If after two academic semesters the staff member is still
unable to competently perform his or her duties or has still not
been treated, the school shall take the initiative to carry out
the procedures for the staff member’s mandatory retirement.
Article   19     
For retirement purposes, a staff member’s age shall be determined
by calculating from the birth date recorded in his or her
household registration.
When a principal (president) or teacher retires voluntarily in
accordance with the provisions of Article 15, the standard
effective date for such retirements will be February 1 or August 1,
 unless there is some special reason to retire on some other date
and the employing school certifies that the retirement will have
no adverse effect on teaching.
When age-mandated retirement is imposed on a staff member in
accordance with the provisions of Article 16, if the staff
member’s birth date falls during the period from August 1 to
January 31 of the following year, the effective date of retirement
will be no later than February 1 of the following year; if the
staff member’s birth date falls during the period from February 1
to July 31, the effective date of retirement will be no later than
August 1.
The standards for determination of the “special reason” referred
to in Paragraph 2 shall be handled in accordance with the relevant
provisions for public schools. 
Article   20     
The retirement payment methods are as follows:
1. For service of less than 15 years: retirement pay shall be paid
   in a lump sum.
2. For service of 15 years or longer: the staff member shall
   choose one of the following payment methods:
(1) a lump-sum payment;
(2) regular periodic payments; or
(3) a combination of a lump-sum plus regular periodic payments.
The standards governing the permitted proportion of the lump-sum
and of the regular periodic payments for the combination payment
method shall be prescribed by the central competent authority.
For a lump-sum payment: the staff member shall receive both the
principal and interest in his or her individual Retirement and
Compensation Fund account, and the retirement pay payable for
his or her years of service before this Act took effect in one
lump sum.
For regular periodic payments: the staff member shall be enrolled
in annuity insurance that is in compliance with the provisions of
the Insurance Act using the total amount that he or she would have
received in a lump-sum payment, to provide the regular periodic
retirement pay payments.
When a person who chooses regular periodic payments or a lump-sum
plus regular periodic payments retires, he or she may use his or
her retirement payment or social insurance benefits, duly received
in accordance with the law, to purchase the annuity insurance
referred to in the provisions of the preceding paragraph with a
lump-sum.
In the case of payments made in accordance with the provisions of
Paragraph 1, Subparagraph 2, Item (3), each retirement payment
shall be calculated based on the ratio between the lump-sum
payment and the periodic payments.
As well as being exempt from the requirement of 15 years of
service or longer stipulated in Paragraph 1, Subparagraph 2 to
become eligible to receive regular periodic payments, a person
who retires because of illness or injury caused as a result of
his or her duty shall also receive an additional lump-sum 20
percent payment from the private school in accordance with the
lump-sum retirement payment standards of the former private school
staff retirement provisions in effect before this Act took effect.
If the person’s period of service is less than 5 years, it shall
be deemed to be 5 years.
The phrase “because of illness or injury caused as a result of
his or her duty” in the preceding paragraph refers to any illness
or injury which has been verified by the employing school as
having occurred as a result of any of the circumstances listed
below and for which a medical treatment certificate issued by a
hospital that meets or exceeds the hospital assessment standards
set by the central competent heath authority has been provided:
1. a hazard occurring while undertaking duties;
2. an accident occurring at the place of work;
3. an accident or hazard encountered while commuting to or from
   work; or
4. sparing no effort and excessively overworking
Article   21     
When a person who has chosen regular periodic payments or a
lump-sum plus regular periodic payments has died, if the annuity
insurance in which the deceased was enrolled in accordance with
the provisions of Paragraphs 3 and 4 of the preceding article
does not provide for continued receipt of payments by his or her
survivors, and the regular periodic payments already received by
the deceased do not amount to the guaranteed amount for which the
deceased was enrolled in the annuity insurance, the insurer shall
pay the balance, discounted to present value at the stipulated
interest rate, to the survivors in a lump-sum.
If the deceased person has no survivors to receive the payment
referred to in the preceding paragraph and did not leave a will
giving instructions regarding how any such payment was to be used,
after using the amount necessary for funeral expenses, his or her
former employing school may, use the balance exclusively to offer
general or special student scholarships for students studying
there.  
The scope, order, and proportional entitlements of the survivors
referred to in Paragraph 1 shall be in accordance with the
stipulations of the annuity insurance contract; if the contract
does not contain any such stipulations, the handling of such
matters shall be governed by the provisions of the Civil Code.
　 Chapter V Severance and Resignation
Article   22     
If any of the circumstances listed below pertain to a staff member,
and that person does not meet the criteria for retirement, the
private school may give the staff member a severance payment in
accordance with the provisions of applicable ordinances and
procedures. However, a severance payment made to a principal
(president) shall be paid by the school foundation; when necessary,
the competent school authority may order it to make payment.
1. Because of adjustments to departments, graduate institutes,
   subjects, divisions, or curricula, or the school reducing the
   number of courses, or ceasing operations, or dissolution of the
   school, work is no longer available for the staff member in his
   or her current position, and no other appropriate work is
   available.
2. The staff member is unable to competently perform his or her
   work because of physical or mental disability, and a certificate
   verifying this has been issued by a hospital that meets or
   exceeds the hospital assessment standards set by the central
   competent heath authority.
3. The quality of the staff member’s work in his or her current
   position, consistently fails to meet teaching standards, and
   this has been reviewed and verified by the school’s teaching
   staff evaluation committee.
4. The staff member has been made subject to a guardianship order
   (or made subject to an interdiction order before November 22,
   2009) or an assistance order, which has not yet been revoked.
Article   23     
Staff severance payments shall be calculated using the standards
for lump-sum payments.
Article   24     
A staff member who resigns without meeting the requirements to
receive any retirement or severance pay may collect the principal
and interest in his or her individual Retirement and Compensation
Fund account in a lump sum. However, a staff member who exploited
an opportunity offered by his or her position to commit a crime
for which he or she was convicted and sentenced may only recoup
the principal and interest from his or her own contributions to
the Fund.
If during his or her period of employment, as referred to in the
proviso in the preceding paragraph a staff member exploits an
opportunity offered by his or her position to commit a crime, and
if the person is convicted and sentenced only after a resignation
payment 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 paid to him or her from the
contributions of the private school and the competent school
authority and the interest it earned.
Article   25     
With the exception of any person who has exploited an opportunity
offered by his or her position to commit a crime for which he or
she has been convicted and sentenced, as referred to in the
preceding article, a staff member who meets the criteria for
resignation payment or severance pay is entitled to refrain from
collecting his or her resignation payment or severance pay which
was duly approved in accordance with provisions, in which event,
from the date the person reaches the age of 60, the Fund
Management Committee will pay the person the principal and
interest of any resignation or severance pay that he or she has
not yet collected, may enroll the person in annuity insurance by
the application, mutatis mutandis, of the provisions of Article 20,
Paragraph 3.
If a person in the circumstances referred to in the preceding
paragraph dies before reaching the age of 60, the principal and
interest of any resignation payment or severance pay that he or
she has not collected shall be paid by the Fund Management
Committee to the person’s survivors in a lump sum. The handling
of the scope of entitlement, order, and proportional entitlements
of the survivors referred to in Paragraph 1 shall be governed by
the provisions of the Civil Code.
The handling of the scope of entitlement, order, and proportional
entitlements of survivors of a person who was enrolled in the
annuity insurance referred to in Paragraph 1 shall be in
accordance with the stipulations of the annuity insurance
contract; if the contract does not contain any such stipulations,
the handling of such matters shall be governed by the provisions
of the Civil Code.
　 Chapter VI Bereavement Compensation
Article   26     
If a staff member either meets with either of the following
circumstances, his or her survivors shall be paid bereavement
compensation:
1. death caused by illness or injury; or
2. death caused as a result of duty.
With the exception of a staff member whose death is caused by
commission of a crime or suicide, his or her survivors shall be
paid the same bereavement compensation as that paid in the case
of a death caused by illness.
The phrase “death as a result of duty” in Paragraph 1,
Subparagraph 2 refers to a death which has been verified by the
employing school as having occurred as a result of any of the
following circumstances:
1. a hazard occurring while undertaking duties;
2. an accident occurring at the place of work;
3. an accident or hazard encountered while commuting to or from
   work; or
4. sparing no effort and excessively overworking.
Article   27     
The bereavement compensation payment methods are as follows:
1. For service of less than 15 years: bereavement compensation
   shall be paid in a lump sum.
2. For service of 15 years or longer: the staff member’s
   survivors shall choose one of the following bereavement
   compensation payment methods:
(1) a lump-sum bereavement compensation payment; or
(2) bereavement compensation annuity payments.
For a lump-sum bereavement compensation payment: the staff member’
s survivors shall receive both the principal and interest in the
staff member’s individual Retirement and Compensation Fund
account, and the bereavement compensation payable for his or her
years of service before this Act took effect in one lump sum
For a bereavement compensation annuity: the staff member’s
survivors shall be enrolled in annuity insurance that is in
compliance with the Insurance Act, using the total amount that
his or her survivors would have received in a lump-sum payment,
to provide a periodically paid bereavement compensation annuity.  
Persons who choose a bereavement compensation annuity may at the
time of the bereavement compensation purchase in full the annuity
insurance referred to in the preceding paragraph with a lump-sum
payment using the whole or a part of a payment from social
insurance or some other lawful resignation payment system.
Article   28     If a staff member’s death was caused as a
result of his or her duty, in addition to the bereavement
compensation made in accordance with the provisions of the
preceding paragraph, an additional one-off payment of 25 percent
of the bereavement compensation shall be made; for a death caused
as a result of a hazard occurring while the person was undertaking
his or her duties, an additional payment of 50 percent shall be
made.
If a person referred to in the preceding paragraph as having his
or her death caused as a result of his or her duty had been
employed less than 15 years, the period of employment shall be
deemed 15 years; in the case of a death caused by a hazard
occurring while the person was undertaking his or her duties, if
the person had been employed 15 years or more but less than 30
years, the period of employment shall be deemed 30 years
The additional amounts of bereavement compensation referred to
in the preceding two paragraphs shall be paid by the private
school in accordance with the former provisions and standards
governing private school staff bereavement compensation in effect
before this Act took effect.
Article   29     
One-half of the bereavement compensation for a staff member’s
survivors shall be distributed to his or her spouse who has not
remarried, and the remainder shall be divided evenly among the
other survivors in the following order:
1. his or her children; if the staff member was an only child,
   his or her parents;
2. his or her parents.
When there are multiple survivors within either of the two
categories referred to in the preceding paragraph, if any of
them dies or waives the right to receive part of the bereavement
compensation, his or her share shall be redistributed evenly
among the remainder of the eligible survivors in the same category. If there are no survivors in the first category, the bereavement compensation shall be distributed evenly among the survivors in the second category.
If the staff member left behind a will which designates the order
in which the survivors referred to in Paragraph 1 are to receive
bereavement compensation, the bereavement compensation shall be
distributed as the staff member’s will instructed.
If there are no survivors in the categories referred to in
Paragraph 1, or if bereavement compensation is not handled in
accordance with this Act, the staff member’s heirs may apply
to the Fund Management Committee to be paid the principal and
interest in the staff member’s individual Retirement and
Compensation Fund account. If the deceased person has no heirs,
the former employing school may, after using the amount necessary
for funeral expenses, use the balance exclusively to offer general
or special student scholarships for students studying there.
　 Chapter VII Management and Supervision
Article   30     
Apart from the uses stipulated in the provisions of Article 31,
the Retirement and Compensation Fund may only be utilized to make
resignation, bereavement compensation, and severance payments for
the staff of private schools, and resignation-related refunds for
the staff of private schools who resign.
Article   31     
The scope of utilization of the Retirement and Compensation Fund
is as follows:
1. purchase of domestic and foreign government bonds, treasury
   bills, short-term notes and bills, beneficiary certificates,
   bonds, stocks of exchange-listed or OTC-listed companies, and
   derivative financial instruments for hedging-purposes;
2. depositing in a bank designated by the Fund Management
   Committee;
3. participation in Retirement and Compensation Fund personnel
   welfare loans, and investment in related real estate
   facilities;
4. Investment in government-approved registered venture capital
   enterprises; and/or
5. other investments that yield a beneficial return-on-investment
   for the Retirement and Compensation Fund, subject to the Fund
   Management Committee reporting to and obtaining approval from
   the central competent authority.
Article   32     
The competent authorities, the Fund Management Committee,
insurance enterprises handling annuity insurance business, and
their related personnel are not permitted to externally disclose
any confidential information obtained in the course of handling
business pertaining to registers of staff members and related
information and are not permitted to seek to obtain any illegal
benefits, and they shall diligently perform the fiduciary duties
of prudent administrators, and seek maximum economic benefit for
staff members.
Article   33     
The Fund Management Committee shall set up separate accounts for
and separately handle the financial matters and revenue and
expenditure of the former private school retirement fund, the
Retirement and Compensation Fund, and the reserve funds that
private schools have delegated the fund to manage and utilize in
accordance with Article 9, Paragraph 2. The Fund Management
Committee shall handle the associated accounting reports and
annual accounts in accordance with regulations.
Regulations governing the revenue and expenditure, management,
utilization, and allocation of any surplus or deficit of the
Retirement and Compensation Fund and of the former private
school retirement fund, and other related matters shall be
prescribed by the central competent authority.
Article   34     
The Fund Management Committee shall review the revenue and
expenditure, utilization, and any surplus or deficit of the
Retirement and Compensation Fund and then publicly disclose their
findings on a monthly basis, and submit them to the central
competent authority for recordation. When necessary, the central
competent authority may audit the registers of staff members,
records of contributions, and associated material.
Article   35     
The expenses incurred by the Fund Management Committee carrying
out the various operations required in association with this Act
may be paid from the former private school retirement fund and
included in the annual budget.
Article   36     
If a private school acts in breach of the provisions of this Act
governing contributions to the Retirement and Compensation Fund,
after receiving a report from the Fund Management Committee, the
competent school authority shall order the school to remedy the
situation within a specified period. If the situation is not
satisfactorily remedied within the specified period, the competent
authority shall suspend financial incentives and subsidies to that
school in whole or in part.
Article   37     
If a staff member who is retiring, resigning, or leaving
employment with severance pay or a survivor who is lodging a
claim to receive bereavement compensation is not satisfied with
a review and approval decision made regarding his or her
retirement, resignation, severance, or bereavement compensation
payments, the person may initiate the remedy procedures available
under the law.
　 Chapter VIII Supplementary Provisions
Article   38     
All account books, receipts, and operational revenue and
expenditure pertaining to the Fund Management Committee handling
matters in accordance with the provisions of this Act are without
exception exempt from taxation.
Article   39     
The provisions of this Act apply, mutatis mutandis, to the
handling of the retirement, severance, resignation, and
bereavement compensation payments of full-time, qualified, paid
personnel in the categories listed below employed within the
establishment staffing of a private school:
1. research personnel appointed in accordance with the Employment
   Guidelines for Research Personnel at Universities;   
2. professional technicians appointed in accordance with the
   Employment Regulations for Teaching Positions for Professional
   Technicians at Universities;
3. professional and technical teachers selected and appointed in
   accordance with the Regulations Regarding the Selection and
   Appointment of Specialized Technical Personnel at Junior
   Colleges; and
4. Foreign nationals holding a full-time post within the
   establishment staffing of a registered private school at any
   level as a qualified, paid teacher or in a capacity listed in
   any of the preceding three subparagraphs.
The provisions of this Act also apply, mutatis mutandis, to the
principal and staff of a private preschool that has completed its
registration.
Article   40     
The Enforcement Rules of this Act shall be prescribed by the
central competent authority.
Article   41     
The date of effect of this Act shall be prescribed by the
Executive Yuan.
The amendments to this Act take effect from the date of
promulgation.