By the end of the year 1997, a draft of the @ Labor Retirement Payment Law "related to the reform of the current system was presented by the Committee of Labor, which is in charge of the labor administration in the central government of Taiwan. Based on the theoretical and practical discussions in terms of public pension scheme (PAYG system) and capital-reserve (CR) system (especially the Chilean model and Singaporean model), this study tries comprehensively to analyse the reform concepts of the government. Finally, this research recommends that Taiwan need a CR system, an improved form of the Singaporean Provident Fund Scheme, for the labor old-age income security, and it should be combined concurrently with a social insurance programm for invalids and survivors.