The One and Only Reason We Need to Integrate the Government Employees Pension! [KBS]

When the pension gap between ordinary citizens and civil servants becomes a public issue, the first thing civil servants say is, "But we pay twice as much in contributions." But under the parametric reform of the National Pension carried out this past March, the National Pension's contribution (premium) rate is set to rise to 13% by 2033. If this happens, employed National Pension participants, adding in the severance pay that accrues at 8.3% of their monthly salary, will in effect be saving about 21.3% of their own income for old-age income. In the case of civil servants, the pension contribution rate is 18%, and adding about 3.2% — the retirement allowance (roughly 39% of the private-sector level) converted into a contribution-equivalent figure — brings the total to 21.2%.

Excluding farmers, fishers, and self-employed workers who have no severance pay, employed National Pension participants will in the future prepare for old-age income at exactly the same level as civil servants. Even so, the pension benefit — which still differs greatly from that of civil servants — is likely to further fuel public opinion that the two pensions are unfair. In addition, public resistance is likely to grow over the fact that the government, even as it covers 9% of the government employees' pension contribution and 3.2% of the retirement allowance out of the fiscal budget, also pays out several trillion won more in subsidies from taxpayers' money to cover the pension deficit of retired civil servants.

https://news.kbs.co.kr/news/pc/view/view.do?ncd=8444442&ref=A