The article has 2 folds. First it introduces the current retirement system of employees of civil service and unveils the hidden financial crisis the system faces. Secondly, the article, in pursuing goals of financial soundness and justice among participants, suggest the reform direction that the retirement system should move on. Though this article focuses on the discussion of retirement system of civil service, the similar financial obligation happens to retirement funds for Teachers and the Military, and thus the reform suggestions apply to these two segments as well.Keywords: retirement system of employees of civil service, accrued liability, normal cost, defined benefit, cash balance plan, multiple layers plan