Less than two weeks after the implementation of a reformed pension scheme for retired civil servants, President Ma Ying-jeou openly acknowledged yesterday that it is "obviously flawed" and, to a certain degree, still favors the privileged over the needy. Ma then urged the KMT lawmakers to fix the problem as soon as possible.

The issue of the new 18-percent preferential interest rate for retired government employee deposits has caused political disputes and created negative views.

In a meeting with high-ranking officials of the cabinet and the party, President Ma instructed the party center and the legislative caucus to quickly amend the laws.

The Ministry of Civil Service, which is in charge of the affairs, convened a meeting this morning, stressing that it would follow the president's instruction to exclude former civil servants from the preferential interest payments if they have certain assets or can maintain an affluent lifestyle.

According to the presidential office, the preferential deposit system might benefit retired government officials who have already enjoy more handsome salaries. For example, former vice president Lien Chan would make additional 100,000 NTD per month.

President Ma Ying-jeou has decided to modify the current 18-percent preferential interest rate for retired government employee deposits under the principles of fairness and equality.

Regarding to the law amendment progress, the president hopes it would be passed in the next legislative term, where the Ministry of Civil Service would consider all the related regulations in the matter and propose its version of amendment.