S. Korea's National Pension System reformed so that workers will pay more to get more

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Mar 202025

18년 만의 연금개혁… 여야, 보험료율 13%•소득대체율 43% 합의 A reform bill that would affect the lives of pension payers in the country. was approved today upon bipartisan agreement. In what will be the first pension reform in almost two decades, workers will pay more and ultimately get more after they retire. Our political correspondent Kim Do-yeon explains. Pay more and get more. On Thursday the National Assembly passed a bill changing the National Pension System that will raise the insurance premium to an eventual 13 percent over the next eight years while the nominal income replacement rate will be raised to 43 percent from the current 41.5 starting next year. This is the first reform in 18 years. "At a time of heightened tension and deep conflict, it was truly a valuable process for both the ruling and opposition parties to come together with a focus on the lives of the people. I believe this is a significant matter that will be greatly recorded in our political and social history." In addition to this the two parties agreed to give more credit months. Those who served mandatory military service will now receive 12 additional months in their pension credit instead of six. Women who give birth will also receive credits. For the first two children, it will be 12 months each while starting from the third child it'll be 18 months. "It took 18 years for these new changes to the pension system because it's a sensitive issue that requires agreements across the aisle, generations, and working classes. But, it's something that needs to be done as the fund will be depleted in a few decades due to aging population and the low birth rate." The new changes, however, only pushed back the depletion time by 10 years to 2055. Because of this more changes will be made and a special committee will be formed. The committee chaired by the ruling People Power Party will be made of 13 members six from the PPP, six from the main opposition Democratic Party of Korea and one from a minor party. The members will discuss structural reform issues, including the revision of the multi-layered income security system linked to pensions, such as basic, retirement, and private pensions, as well as financial stability concerns. Kim Do-yeon, Arirang News. #NationalAssembly #Plenary_session #Pension #Pension_reform #PPP #DP #국회 #본회의 #연금 #소득대체율 #보험료율 #연금개혁 #Arirang_News #아리랑뉴스 📣 Facebook : / arirangtvnews 📣 Twitter : / arirangtvnews 📣 Homepage : https://v2.arirang.com/ 2025-03-20, 20:00 (KST)