National Pension Fund Financial Calculation Kicks Off... First Meeting of Fund Management Development Committee Held

[Asia Economy Reporter Kim Young-won] The Ministry of Health and Welfare announced on the 4th that it has formed the "National Pension Fund Management Development Committee" and held its first meeting at the Seoul Northern Regional Headquarters of the National Pension Service, officially commencing its operations for the 5th National Pension financial calculation.

To establish the comprehensive operation plan for the National Pension under Article 4 of the National Pension Act, the Fund Management Development Committee, the Financial Calculation Committee to discuss improvements to the National Pension system, and the Financial Projection Committee for long-term financial forecasts are operated together every five years.

The Fund Management Development Committee consists of a total of 11 members, including experts recommended by labor, employer, and regional subscriber organizations, expert groups, and government officials to ensure representativeness and expertise. Professor Park Young-seok of Sogang University Business School was appointed as the chairman.

The committee will operate until the comprehensive operation plan for the National Pension is prepared. It will discuss the role of the fund and the establishment of fund management goals to enhance the sustainability of the National Pension.

At the first meeting, the committee discussed the basic operational directions, including the schedule and review of necessary discussion topics. Various matters such as fund management investment strategies, improvements to the fund management system, and establishment of long-term management strategies will be reviewed in the future.

Previously, the Financial Projection Committee, which has been formed and operating since August, has held eight meetings so far. The chairman is Jeon Byung-mok, a research fellow at the Korea Institute of Public Finance.

The Financial Projection Committee focused on discussing key core variables such as population and macroeconomic variables, reviewing variable forecasting methodologies and financial projection models. Based on this, long-term financial forecasts will be conducted.

Additionally, to link discussions between committees, the Financial Projection Committee plans to hold joint meetings with the Fund Management Development Committee to review fund investment return forecasts and reflect them in long-term financial forecast scenarios related to fund returns.

Lee Se-ran, Director of the Pension Policy Bureau at the Ministry of Health and Welfare, said, "Through discussions of the Fund Management Development Committee, we expect to review directions for improving National Pension fund management and, based on this, to prepare expert-centered National Pension system improvement measures."