Pension Reform Special Committee Shifts to 'Structural Reform'... 'Hot Issues Like Insurance Premium Rates Put on Hold'

[Asia Economy Reporter Naju-seok] The National Assembly's Special Committee on Pension Reform (Pension Special Committee) has decided to prioritize discussions on structural reform over parametric reforms such as contribution rates and income replacement rates. They have shifted the focus to 'structural reform,' including the integration of different pensions like the Basic Pension, Retirement Pension, and Private School Pension, leaving the controversial parametric reforms to the government.

On the 8th, Kang Ki-yoon, the People Power Party's secretary of the Pension Special Committee, met with Kim Sung-joo, the Democratic Party's secretary of the Pension Special Committee, and private advisory committee members at the National Assembly. After the meeting, he told reporters, "Structural reform in the public sector must come first," adding, "If issues such as how to organize the Basic Pension, Basic Livelihood Pension, Retirement Pension, and Private School Pension in connection with each other are resolved, parametric reforms and other measures can follow."

[Image source=Yonhap News]

Kang said, "Parametric reforms are supposed to be conducted every five years through government fiscal projections, and we agreed that this responsibility largely belongs to the government."

The private advisory committee initially failed to present a pension reform plan by the end of January due to differing opinions on raising contribution rates and income replacement rates related to the National Pension. At what was expected to be a meeting to discuss further directions, the overall direction of the National Assembly's pension reform discussions changed.

Kang said, "It is difficult to predict the advisory committee's content, but today we reached a consensus that it is better to first study and set the direction for structural reform before proceeding." Regarding the Special Committee's activity period, which was scheduled until the end of April, he added, "Once a direction is established, the Special Committee will discuss it," and "If more time is needed, I think the timetable will be adjusted."