At the Forum Hosted by 與: "Pension Reform 'Pay More, Receive More' Is Not Acceptable"

Choo Kyung-ho "Since Pension Reform is Inevitable... Reformative Measures Needed"
Woo Jae-joon "Extending Retirement Age and Reemployment Can Be Solutions"
Pension Reform Youth Action "National Pension Must Be Financially Stable"
Regarding 21st National Assembly Public Deliberation Committee Results "Populism"

At a National Pension forum hosted by Park Su-young, a member of the People Power Party (re-elected, Busan Nam-gu), and the Youth Action for Pension Reform, there was a call for "enhancing the sustainability of the National Pension." The results of the public opinion committee's survey on the 'pay more, receive more' proposal discussed in the 21st National Assembly were criticized as 'populism.'

On the morning of the 22nd, Park held a forum at the National Assembly Members' Office Building under the theme "What is the direction of pension reform for the country's future as thought by the MZ generation?" Floor leader Choo Kyung-ho and lawmakers Song Eon-seok, Woo Jae-joon, and Lee In-seon also attended. In his congratulatory speech, Floor Leader Choo said, "Since we have decided to reform the pension system, a reformative method must be prepared," adding, "With lawmakers, experts, and the younger generation present, I hope there will be a serious discussion to come up with a good reform plan that satisfies the people."

On the morning of the 22nd, Floor Leader Choo Kyung-ho attended and gave a congratulatory speech at the debate titled "What is the Direction of Pension Reform for the Nation's Future According to the MZ Generation?" held at the National Assembly Members' Office Building.
[Photo by Barun Cheongnyeon Yeonhap]

Floor Leader Choo stated, "We have gradually lowered the income replacement rate to 40% by 2028 over a long period," and added, "Although there is a temptation to increase the income replacement rate to gain favor, this conflicts with the sustainability for future generations." The income replacement rate refers to the ratio of pension benefits to the subscriber's average lifetime income. Discussions on National Pension structural reform mainly focused on the contribution rate, which corresponds to the 'amount paid,' and the income replacement rate, which corresponds to the 'amount received.'

Park said, "There is a conflict between sufficient old-age income security and pension financial sustainability," and stated, "We must navigate this dilemma to create a structure where retirees receive adequate pension income without depleting the finances." Lawmaker Woo said on the day, "There is talk about extending the retirement age and re-employing the elderly," adding, "If old-age income is resolved, the answer to pension reform may come from there." He also said, "I hope the part where employment income can supplement elderly income is also considered."

At the forum, young people argued that the contribution rate should be increased to enhance financial stability. There were many criticisms of the 'increase contribution rate while also increasing the income replacement rate' plan decided by the 21st Pension Reform Special Committee's public opinion committee. Kim Sang-jong, representative of Free Citizen Education and a panelist, pointed out, "'Giving no matter what' means that if the fund is depleted, the government treasury will be used to cover it," and criticized, "Soothing future generations like this is exactly populism."

Son Young-kwang, representative of the Right Youth Union, said in an interview, "We must stabilize the National Pension finances, which are on the verge of bankruptcy, by any means," adding, "We need to either raise the contribution rate or reduce the benefits." Son also claimed at the forum that there were problems in the public opinion committee's investigation process. He said that the participants of the public opinion committee chose the 'pay more, receive more' plan without properly understanding the financial situation of the National Pension.