Could the “Automatic Adjustment Mechanism” Be the Pension’s Relief Pitcher? Seven of Nine Private-Sector Experts Say “Yes” (August 16, 2024)

(Expert opinion —

overturned, of all things, by putting forward a citizen representative group that did not even understand the substance. A textbook case.

An event that will not be erased from the history of pension reform discussions worldwide

“a comedy-like farce” took place in the Republic of Korea in March 2025!)

It has emerged that the expert group that laid the groundwork for pension reform had already acknowledged the need for the National Pension automatic adjustment mechanism that the government is now pushing to introduce.

The point is that the automatic adjustment mechanism helps secure the sustainability of the National Pension. 

According to the National Pension Service on the 16th, the National Pension’s Fifth Financial Estimation Committee discussed financial stability measures for the National Pension, including the introduction of an automatic adjustment mechanism, at a meeting last June.

The Financial Estimation Committee, which includes private-sector members along with government members from the Ministry of Health and Welfare, the Ministry of Economy and Finance, and other agencies, is a consultative body that discusses the direction of reform based on a 70-year projection of pension finances.

Seven of the nine private-sector members who attended that meeting were in favor of adopting the automatic adjustment mechanism.

In addition to parametric reforms such as raising the contribution rate and pushing back the pension eligibility age, introducing the system was said to be needed for additional fiscal stability.

In particular, a “Finnish-style” automatic adjustment mechanism that reflects a life-expectancy coefficient in the pension was raised as an option.

https://n.news.naver.com/article/009/0005351212?sid=101