Choi Sang-mok, Acting President and Deputy Prime Minister as well as Minister of Strategy and Finance, instructed the Ministry of Health and Welfare on the 7th regarding the discussion on National Pension reform, saying, "The automatic adjustment mechanism should be discussed together with parametric reform, so explain it once again to the ruling party."
According to the Ministry of Strategy and Finance, Acting President Choi gave this instruction after receiving a report on the results of the ruling and opposition parties' council on pension reform from Lee Ki-il, First Vice Minister of the Ministry of Health and Welfare, on the same day.
Acting President Choi emphasized, "The automatic adjustment mechanism is a parametric reform dealing with figures and is a key element to guarantee old-age income security and the sustainability of the National Pension's finances."
The automatic adjustment mechanism, a contentious issue in the ruling and opposition parties' pension reform negotiations, is a system where the contribution rate and income replacement rate are automatically adjusted according to demographic and economic conditions.
The ruling party, at the council between the ruling and opposition parties held at the National Assembly the day before, agreed with the opposition party to first discuss parametric reform and to discuss the introduction of the automatic adjustment mechanism later at the National Assembly's Special Committee on Pension Reform.
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