"Under Moon Administration, Pension Reform Missing"
"Stop Watching Unions, Join for the Country"
[Asia Economy Reporter Lim Ju-hyung] Former People Power Party lawmaker Yoo Seung-min expressed full agreement on the 16th with Justice Party leader Kim Jong-cheol's proposal to "integrate civil servant, private school, and national pension systems." Yoo, who previously served as the ruling party floor leader during the Park Geun-hye administration, successfully passed the civil servant pension reform bill.
In a post on his Facebook page that day, Yoo said, "Leader Kim stated in an interview, 'Let's integrate the civil servant pension and private school pension into the national pension to reduce fiscal deficits and create a fair retirement.' I applaud Leader Kim's courageous proposal beyond political camps."
He added, "I hope we can move beyond populist competition and work together on rational and common-sense reforms for the true future of the Republic of Korea."
Targeting the Moon Jae-in administration and the ruling party, he said, "President Moon and the Democratic Party should stop worrying about the National Public Officials Labor Union and the Korean Teachers and Education Workers Union and join pension reform for the country's future. During the Park Geun-hye administration, I, as the ruling party floor leader, carried out civil servant pension reform despite conflicts with the Blue House."
Former Saenuri Party floor leader Yoo Seung-min is holding a resignation press conference at the National Assembly Press Hall on July 8, 2015. / Photo by Asia Economy DB
Earlier, in May 2015, when Yoo was the Saenuri Party floor leader, he agreed to process the civil servant pension law amendment in exchange for accepting the opposition New Politics Alliance for Democracy's demand to revise the National Assembly Act. The key point of the amendment was to gradually reduce the 'payment rate' that determines the pension civil servants receive after retirement from 1.9% per year of service to 1.7%.
However, former President Park Geun-hye vetoed this agreement, calling it "politics of betrayal that breaks trust." Facing severe backlash within the party, Yoo resigned from his floor leader position after a press conference on July 8 of that year.
Regarding this, Yoo explained, "During the Park Geun-hye administration, I, as the ruling party floor leader, carried out civil servant pension reform despite conflicts with the Blue House. That reform was expected to save 37 trillion won in taxpayers' burden over the next 30 years and 333 trillion won over 70 years."
He also pointed out that pension reform discussions have not taken place under the current administration. Yoo emphasized, "Under the Moon Jae-in administration, pension reform has completely disappeared. If this continues, the future of the people is bleak."
Kim Jong-cheol, leader of the Justice Party, is speaking at the leadership meeting held at the National Assembly in Yeouido, Seoul, on the morning of the 15th. / Photo by Yonhap News
Meanwhile, on the 16th, Leader Kim urged pension reform in an interview with the JoongAng Ilbo, saying, "We must break the taboo of progressivism."
He said, "Civil servant pensions, private school pensions, and military pensions are subsidized by government finances, with deficits exceeding 10 trillion won in 10 years. Who can understand this? We need to talk about integrating these into the national pension to reduce fiscal deficits and create a fair retirement."
When asked if union opposition would be a burden, he emphasized, "We must bravely implement policies that break taboos for the people."
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