(October 2014 Column) The Saenuri Party's Government Employees Pension Reform Proposal Requires Further Revision
- #국민연금법
The reason the 2009 reform of Korea's Government Employees Pension was criticized is that it left untouched the provisions that would have produced the greatest fiscal stabilization effect. At the time, excluding those who had already entered the civil service before 2009 substantially weakened the impact of the reform. In addition, the reference income used to calculate pension contributions and benefits was changed to taxable income, which caused the reference income to rise by 54% compared to the previous standard. As a result of this change, the possibility emerged that pension benefits for incumbent civil servants—particularly long-serving ones—would increase. The current reform proposal carries a similar risk of producing the same outcome.
