Since the premium with 18% interest rate triggered a hot debate in Taiwan, the public has paid more attention to the retirement system of civil servants and called for reforms. Especially in this century when population aging became a worldwide problem, most nations were forced to face the dilemma of responding to the economic security of the old-age or keeping financial health.This retirement system was established in 1943. Over the past sixty years, it developed into a large scale, as modern as those in the advanced countries. However, some parts of it are pretty backward, even counter of the historic experiences and academic theories. Therefore, to know the way of reforms means to reexamine the evolution of the system and explore the related theories.Generally speaking, this retirement system can be changed in the following. The lump-sum payment should be cancelled. The voluntary retirement age should be strictly regulated, no less than 63. The opportunities for the retiree to get paid jobs should be exactly limited. At the same time, in order to keep financial health, the pension contribution rate, income-replacement ratio and the dependant population should interact with each other.