"A Crucial Turning Point in Establishing an Old-Age Income Security System"
Efforts to improve the retirement pension system are gaining momentum to strengthen income security for citizens in their later years. For the first time in the 20 years since the introduction of the retirement pension system, experts representing labor, management, and government are coming together to discuss the mandatory adoption of retirement pensions and the introduction of a fund-type retirement pension system. Based on the results of these discussions within the year, a consensus statement or recommendation will be issued.
On October 28, the Ministry of Employment and Labor officially launched the "Tripartite Task Force for Strengthening the Function of Retirement Pensions" and held its first meeting at the Seoul Regional Employment and Labor Office.
The purpose of this task force is to discuss measures to enhance the function of retirement pensions in securing income for old age, including increasing the adoption rate of retirement pensions and improving returns. In particular, considering its importance as a national agenda, social interest, and the significance of the system, the task force decided to prioritize discussions on "mandatory adoption of retirement pensions" and the "introduction of a fund-type retirement pension system" as key agenda items. The goal is to produce a consensus statement or recommendation within the year.
The task force consists of 18 members, including the chairperson (Jang Jiyeon, Senior Research Fellow at the Korea Labor Institute), representatives from labor, management, youth, government, and the public interest. Notably, members of the younger generation, who are directly affected by the system, are participating to reflect the perspectives of future generations. Chairperson Jang Jiyeon is an expert in the field who previously served as chair of the "Special Committee on National Pension Reform and Old-Age Income Security" at the Economic, Social and Labor Council, a national dialogue body, in 2018.
The task force will hold meetings at least once every two weeks, where experts will present and engage in open discussions on key issues. Regarding the mandatory adoption of retirement pensions, topics will include the phased implementation by workplace size, measures to ease the burden on small and medium-sized enterprises, and ways to ensure compliance with the mandate. For the introduction of a fund-type retirement pension system, the task force will examine core issues related to system design, such as the entity responsible for fund management (public or private sector), and the accountability framework (conflict of interest prevention measures, management and supervision systems, etc.).
Kwon Changjun, Vice Minister of the Ministry of Employment and Labor, emphasized, "This task force marks the first time that labor, management, and government are coming together since the introduction of retirement pensions." He added, "Given the low adoption rate of retirement pensions among small and medium-sized enterprises, there is a significant risk that labor market disparities will lead to disparities in old-age income. Making retirement pensions mandatory and introducing a fund-type system will be a crucial turning point in bridging these gaps and establishing an income security system for all working people."
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