Will Pass Population Reform Plan Based on Premise of Forming Pension Special Committee

Differences Over the Phrase "Processed by Bipartisan Agreement" in the Pension Special Committee
"Structural Reform Discussions Should Be Premised on the Special Committee"

The People Power Party announced on the 18th that it will process the 국민연금 (National Pension) parametric reform plan agreed upon by both ruling and opposition parties, on the condition that the National Assembly's Special Committee on Pension Reform is formed.

Kim Sang-hoon, the chairman of the Policy Committee, said to reporters at the National Assembly on the same day, "Pension reform negotiations have not been practically finalized," indicating this stance.

Speaker Woo Won-sik and the floor leaders of both ruling and opposition parties reaffirmed the existing agreement on the parametric reform plan that day. The plan involves raising the contribution rate (the amount paid) to 13% and increasing the income replacement rate (the amount received) to 43%.

Yonhap News

However, they failed to narrow differences regarding the formation of the Pension Special Committee, which will discuss structural reforms. The People Power Party insists that the phrase "processed by bipartisan agreement" must be included to process the parametric reform plan, whereas the Democratic Party argues that including such a phrase is unnecessary.

Chairman Kim questioned, "When launching special committees in the National Assembly, the phrase 'agenda items are processed by bipartisan agreement' has never been omitted. Why is it that only this time they want to remove the phrase? Is it an attempt to push through unilaterally?"

He added, "The parametric reform should be processed in the Health and Welfare Committee on the premise that agenda items in the Pension Special Committee are handled by bipartisan agreement," reaffirming the previous position, "We just need mutual consent on including the phrase about processing by agreement."

Kim Mi-ae, the ruling party's secretary of the Welfare Committee, also emphasized, "If the automatic adjustment mechanism, which is part of structural reform, is excluded and support is expanded by raising the income replacement rate as is, it will be difficult to significantly reduce the burden on future generations," adding, "Having the special committee as a prerequisite provides trust that structural reforms will be carried out."