Conservative 'dark horses' such as Han Dong-hoon, former leader of the People Power Party, Yoo Seung-min, former lawmaker, and Lee Jun-seok, lawmaker of the Reform New Party, have consecutively expressed opposition to the 국민연금 (National Pension) reform plan of 'paying more and receiving more.'
The amendment to the 국민연금법 (National Pension Act), passed at the National Assembly plenary session on the 20th, includes major reforms such as an insurance premium rate of 13%, an income replacement rate of 43%, codification of state payment guarantees, and expansion of credits for military service and childbirth (recognition of 국민연금 subscription periods). However, during the vote, 56 lawmakers, more than half of the members of their parties, abstained or voted against it.
On the 22nd, former leader Han posted on Facebook, "The young generation should not be unfairly burdened," urging the government to exercise its right to request reconsideration (veto). Regarding the insurance premium rate, he said, "It may seem fair at first glance, but it is not," explaining that "the burden on the young generation, who have a much longer period to pay in the future, is much greater than that of the current generation, including the 86 generation who will soon receive pensions." On the income replacement rate, he also stated, "It is problematic to raise it immediately from next year," arguing that "if the amount to be paid is increased slowly while the amount to be received is raised immediately, only the current generation with a shorter payment period benefits, and the burden on the young generation becomes heavier."
Former lawmaker Yoo also criticized on Facebook, saying, "The '13%·43%' reform plan passed by the National Assembly is merely a patchwork collusion between the ruling and opposition parties." He added, "Although 'paying more and receiving less' pension reform is realistically difficult, we cannot accept the extension of the depletion point by only a few years through the 'paying more and receiving more' method as it is," and called for "fundamental pension reform again."
Lawmaker Lee said, "The National Assembly has made a decision that abuses and exploits future generations," adding, "The Reform New Party could never participate in the hasty agreement, a 'pre-decided' pension collusion, which is a self-praise and an attempt to create a boast about achieving pension reform for the first time in 18 years ahead of the election." He also argued, "The behavior of those close to an average age of 60 recklessly deciding the future of children born now must stop here." Furthermore, he pledged to make efforts toward structural reform so that institutional devices such as the introduction of automatic pension adjustment mechanisms, separation plans for new and old pensions, and measures to strengthen generational equity can be implemented.
© The Asia Business Daily(www.asiae.co.kr). All rights reserved.
