Most Popular
-
1
Dongduk Women’s University halts coeducation talks
-
2
Defense ministry denies special treatment for BTS’ V amid phone use allegations
-
3
Russia sent 'anti-air' missiles to Pyongyang, Yoon's aide says
-
4
OpenAI in talks with Samsung to power AI features, report says
-
5
Two jailed for forcing disabled teens into prostitution
-
6
South Korean military plans to launch new division for future warfare
-
7
Gold bars and cash bundles; authorities confiscate millions from tax dodgers
-
8
Kia EV9 GT marks world debut at LA Motor Show
-
9
Teen smoking, drinking decline, while mental health, dietary habits worsen
-
10
North Korean leader ‘convinced’ dialogue won’t change US hostility
Public servants’ pension reform continues to stir controversy
By Claire LeePublished : Oct. 12, 2014 - 20:58
Amid fierce resistance from the nation’s public servants to the ruling Saenuri Party’s proposal to cut their monthly pension, a lawmaker has revealed that one in five retired public workers receive more than 3 million won ($2,798) in pension payouts, an amount about nine times higher than what retired workers in private sectors receive.
According to Rep. Cho Won-jin of the ruling party, the number of retired public workers who receive such large amounts will only increase rapidly if no reform is implemented, as South Korean society is rapidly aging.
The current public servant pension program, if no change is made, will be a threat to the country’s future economy, he said.
Meanwhile, the average monthly payout amount for the National Pension ― a state-run pension program which covers those outside the public service, education and military sectors ― is only 320,000 won, according to the National Pension Service.
The allowance is only about half the amount of what the government has designated “the minimum cost of living,” which is 603,403 won. Those who make less than 603,403 won a month are entitled to receive the basic living allowance, which is given to destitute individuals nationwide.
While more than 20 percent of retired public employees received more than 3 million won in August, the recipient of the National Pension’s largest monthly payout in the same month was only given 1.68 million won.
“Public servants and nonpublic workers must talk about this together to (implement this necessary reform to bring about a fair share of welfare benefits),” lawmaker Cho said.
Under the ruling party’s reform proposal, which was introduced in collaboration with the Korean Pension Association, public employees will have to pay 43 percent more in premiums and receive 34 percent less in pension payouts.
The announcement of the proposal triggered fierce resistance from the nation’s unionized public workers, who argue that the Saenuri’s plan will mainly benefit members of the KPA, many of whom are associated with private insurance companies, including Hanwha Life Insurance and Samsung Fire & Marine Insurance.
Last month, a forum on the pension reform, organized by the Saenuri Party and the KPA, was canceled as some 200 unionized public workers blocked the proceedings in a National Assembly conference room.
According to a report submitted to Cho’s office by the Ministry of Security and Public Administration, a total of 338,450 retired public servants were receiving their pension payouts as of August.
Among them, 75,036 were receiving more than 3 million won each month. The percentage of such recipients increased from 18.4 percent in 2012 to 22.2 percent this year.
By Claire Lee (dyc@heraldcorp.com)
According to Rep. Cho Won-jin of the ruling party, the number of retired public workers who receive such large amounts will only increase rapidly if no reform is implemented, as South Korean society is rapidly aging.
The current public servant pension program, if no change is made, will be a threat to the country’s future economy, he said.
Meanwhile, the average monthly payout amount for the National Pension ― a state-run pension program which covers those outside the public service, education and military sectors ― is only 320,000 won, according to the National Pension Service.
The allowance is only about half the amount of what the government has designated “the minimum cost of living,” which is 603,403 won. Those who make less than 603,403 won a month are entitled to receive the basic living allowance, which is given to destitute individuals nationwide.
While more than 20 percent of retired public employees received more than 3 million won in August, the recipient of the National Pension’s largest monthly payout in the same month was only given 1.68 million won.
“Public servants and nonpublic workers must talk about this together to (implement this necessary reform to bring about a fair share of welfare benefits),” lawmaker Cho said.
Under the ruling party’s reform proposal, which was introduced in collaboration with the Korean Pension Association, public employees will have to pay 43 percent more in premiums and receive 34 percent less in pension payouts.
The announcement of the proposal triggered fierce resistance from the nation’s unionized public workers, who argue that the Saenuri’s plan will mainly benefit members of the KPA, many of whom are associated with private insurance companies, including Hanwha Life Insurance and Samsung Fire & Marine Insurance.
Last month, a forum on the pension reform, organized by the Saenuri Party and the KPA, was canceled as some 200 unionized public workers blocked the proceedings in a National Assembly conference room.
According to a report submitted to Cho’s office by the Ministry of Security and Public Administration, a total of 338,450 retired public servants were receiving their pension payouts as of August.
Among them, 75,036 were receiving more than 3 million won each month. The percentage of such recipients increased from 18.4 percent in 2012 to 22.2 percent this year.
By Claire Lee (dyc@heraldcorp.com)
