Ahn Cheol-soo: "National Pension Reform Plan is a Deterioration... Cannot Pass on Debt Bomb"

Proposal for Integration of Special Occupational Pensions and National Pension System

Ahn Cheol-soo, a member of the People Power Party, stated on the 5th regarding the National Pension reform plan discussed by the National Assembly's Special Committee on Pension Reform, "The first button was fastened incorrectly."

Ahn Cheol-soo, member of the People Power Party. [Image source=Yonhap News]

On the same day, Ahn said on Facebook, "Except for delaying the fund depletion period by 7 to 8 years, this is a deteriorated plan that loses the purpose of pension reform, which is the sustainability of the National Pension." The first plan, the income guarantee plan, proposes raising the contribution rate from the current 9% to 13% and increasing the income replacement rate from the current 40% to 50%. The second plan, the financial stability plan, suggests raising the contribution rate to 12% while maintaining the income replacement rate at 40%.

Ahn said, "The voted plans are not an income guarantee plan vs. a financial stability plan but merely plans that cancel each other out," adding, "Both the majority and minority plans differ only slightly, and the plan that will ruin the pension system has been disguised as the income guarantee plan."

Ahn stated, "The pensions of the baby boom generation, which had 1 million births, cannot be borne by the 20s and 30s generations and the future low-birthrate generations with fewer than 200,000 births," and added, "The debt bomb of the National Pension should not be passed on to the 20s and 30s generations."

Ahn proposed "a unified pension system that integrates special occupational pensions such as those for public officials and teachers with the National Pension," stating, "Continuing to pour taxpayers' money into special occupational pensions is unsustainable. Reform of the National Pension and special occupational pensions must go hand in hand."