Because of the life expectancy, low birth rate and the financial crisis, those challenges made countries' pension system collapsed. In June 2008, the National Development Council was instructed by the Executive Yuan to plan the economic security system for the aged. In 2016, Taiwan underwent political rotation again. On May 27 2016, government announced the establishment of the ＂Office of the President's Pension Reform Committee＂. The committee declared ＂two set＂ pension system that may be reformed. Then in June 27 and 29 2017, Legislative Yuan passed the pension reform bills of government employee and public school staffs, it is scheduled to be implemented in July 2018. The origin of the public pension was built by German Prime Minister Bismarck who set up the world first pension and social insurance system, then many western countries followed. However, after a long period of time, the OECD survey found that most member states carried out pension reforms the last thirty years. The World Bank also believes that pension reforms should be directed toward a multi-level model of economic security for the elderly. At the same time, the management models of pension funds in various countries have been tested in the financial tsunami, and the good management of pension funds has received considerable. This article discusses the origin of public pensions, the retirement system in our country, the payment of pensions and the operation of pension funds, and provides three suggestions for the Taiwan pension reform: 1, the pension reform committee should return to the Executive Yuan timely; 2, the fund management should pay attention to the specialty and flexible planning, and 3, to formulate the special protection law for retirement funds so as to achieve the consensus of generations and the goal of social harmony.