Lee Gi-il, Deputy Minister of Welfare, "Concerns Over Financial Difficulties in National Pension Income Guarantee Plan"

Visit to the National Pension Service Headquarters on the 25th

Lee Gi-il, the 1st Vice Minister of the Ministry of Health and Welfare, mentioned on the 25th regarding the pension reform proposal by the Pension Reform Deliberation Committee's citizen representatives, "The pension reform was discussed for fiscal stability, but there are concerns that difficulties may accelerate." The Vice Minister also met with six experts from the 'National Pension Future Reform Advisory Group' the day before and expressed financial concerns about the 'pay more, receive more' pension reform plan.

Lee Gi-il, 1st Vice Minister of Health and Welfare. Photo by Jin-Hyung Kang aymsdream@

According to the Ministry of Health and Welfare, on the same day, Vice Minister Lee visited the headquarters of the National Pension Service located in Jeonju, Jeollabuk-do, and received a report from Kim Tae-hyun, Chairman of the National Pension Service, on the financial projections by the National Pension Research Institute regarding the deliberation results and the current status of the National Pension operation.

Earlier, among the 500 citizen representatives of the Deliberation Committee, 56% chose Plan 1, 'pay more, receive more' (gradually increasing the National Pension insurance premium rate from the current 9% to 13% and raising the income replacement rate from the current 40% to 50%), while 42.6% selected Plan 2, 'pay more, receive the same' (gradually increasing the insurance premium rate to 12% within 10 years and maintaining the income replacement rate at the current 40%).

Vice Minister Lee said, "There was much support for raising the income replacement rate along with the insurance premium increase," but added, "It is true that there are voices expressing concerns about the sustainability of the finances for the plan that received much support in the deliberation." He continued, "We want to hear the National Pension Service's opinions on the pension's financial situation, financial outlook for the deliberation results, and ways to improve fund returns for a desirable reform direction." He also stated, "The government will do its best together with the National Assembly to ensure that pension reform can be achieved as soon as possible."

Meanwhile, Vice Minister Lee also met with six experts from the 'National Pension Future Reform Advisory Group' the day before and expressed financial concerns about the 'pay more, receive more' pension reform plan. Additionally, he exchanged opinions with the experts on ways to harmonize Plan 1 and Plan 2.