Table:
|  | For the years ended December 31, |  |
| --- | --- | --- |
|  | 2018 | 2019 |
|  | $NT (In Thousands) | $NT (In Thousands) |
| Defined benefit obligation at beginning of year | $(5,671,058) | $(5,620,509) |
| Items recognized as profit or loss: |  |  |
| Service cost | (24,477) | (21,043) |
| Interest cost | (61,247) | (51,146) |
| Subtotal | (85,724) | (72,189) |
| Remeasurements recognized in other comprehensive income (loss): |  |  |
| Arising from changes in financial assumptions | (91,350) | (114,976) |
| Experience adjustments | (5,907) | 180,095 |
| Subtotal | (97,257) | 65,119 |
| Benefits paid | 233,530 | 216,510 |
Paragraphs:
The employee pension plan mandated by the Labor Standards Act of the R.O.C. is a defined benefit plan. The pension benefits are disbursed based on the units of service years and average monthly salary prior to retirement according to the Labor Standards Act. Two units per year are awarded for the first 15 years of services while one unit per year is awarded after the completion of the 15th year and the total units will not exceed 45 units.
The Company contributes an amount equivalent to 2% of the employees’ total salaries and wages on a monthly basis to the pension fund deposited with the Bank of Taiwan under the name of a pension fund supervisory committee. The pension fund is managed by the government’s designated authorities and therefore is not included in the Company’s consolidated financial statements. For the years ended December 31, 2017, 2018 and 2019, total pension expenses of NT$80 million, NT$69 million and NT$59 million, respectively, were recognized by the Company.
Movements in present value of defined benefit obligation during the year:
Question:
The employee pension plan is mandated under which Act?
Answer: the Labor Standards Act of the R.O.C.