Activity Report of the Advisory Committee to the 21st National Assembly Special Committee on Pension Reform (2023)

The 21st National Assembly Special Committee on Pension Reform’s private advisory committee activity report is attached.

Regarding the fiscal stabilization proposal, which was the biggest point of contention,

what committee member Nam Chan-seop proposed —

“a 13% contribution rate and a 50% income replacement rate” (the income-security-strengthening theory), and

what committee member Yoon Seok-myung proposed —

“a 15% contribution rate and a 40% income replacement rate” (the fiscal-stabilization theory) — were presented.

From that time on, the Pension Future Forum, whenever it had the opportunity, denounced the unfairness of framing the debate as "the income-security-strengthening theory" versus "the fiscal-stabilization theory."

At meetings of the 21st National Assembly’s Special Committee on Pension Reform

and also at the 2023 fifth National Pension Financial Estimation Committee,

committee member Yoon Seok-myung had emphasized the following.

"The wording or framing of the 'fiscal-stabilization theory,' as it is commonly referred to in the media, is wrong. This is because even this proposal, which is called the fiscal-stabilization theory, cannot actually achieve fiscal stability.

So instead of the wording or framing of 'fiscal-stabilization theory,' the wording 'preventing systemic collapse' should be used."

In the attached activity report, Committee Member Nam Chan-seop’s fiscal stabilization proposal appears starting on page 424,

and from page 457, Committee Member Yoon Seok-myung’s fiscal stabilization proposal is recorded.