National Pension: ‘Pay more and receive more’ 56%… ‘The mandatory subscription age should be raised to 64’ 80.4%

by times news cr

2024-04-22 07:40:30

On the afternoon of the 17th, staff are busy in the general counseling room of the Northern Seoul Regional Headquarters of the National Pension Service in Seodaemun-gu, Seoul. 2024.4.17

As a result of a survey of 500 citizen representatives conducted by the Public Opinion Committee of the National Assembly’s Special Committee on Pension Reform, 56% of them chose the ‘pay more and receive more’ plan for the national pension.

80.4% were in favor of raising the mandatory subscription age to 64.

The Public Opinion Committee announced the results of the final survey at the National Assembly Communication Center on the afternoon of the 22nd.

The Public Deliberation Committee conducted a first survey before study (March 22-25), a second survey before public deliberation (April 13), and public deliberation among 492 citizen representatives representing the gender, age, and region ratio of the people. After deliberation, the third final survey was conducted (April 21). Deliberative discussions were held by topic a total of four times over the past two weeks.

First, as a result of the final survey on the national pension ‘parameter reform’, 56% of the delegation chose the first plan that emphasized income security, that is, the ‘pay more and receive more plan’ (insurance premium rate 13%, income replacement rate 50%).

Plan 2, which emphasized financial stability, ‘Pay more and receive the same’ (insurance premium rate of 12%, income replacement rate of 40%) was chosen by 42.6%.

The current national pension insurance premium rate is 9% and the income replacement rate is 40%.

In the first survey, the delegation placed more emphasis on financial stability, with 36.9% choosing plan 1 and 44.8% choosing plan 2, but from the second survey, more emphasis was placed on income security, with 50.8% choosing plan 1 and 38.8% choosing plan 2.

Additionally, 80.4% were in favor of raising the upper age limit for mandatory national pension subscription to 64 years. Only 17.7% of respondents said they would maintain the status quo (ages 18-59).

The current upper age limit is a standard set when the national pension system was implemented in 1988.

Until 2012, when the starting age for receiving benefits was 60, the same as the legal retirement age, there was no gap between the subscription age and the starting age for receiving benefits, but as the starting age for receiving benefits gradually increased, a gap in enrollment and income interruption occurred.

When asked to choose two ways to resolve blind spots, most people chose expanding maternity credit (82.6%) and military service credit (57.8%).

In a survey on ‘structural reform’, which is an overall overhaul of the national pension, basic pension, and retirement pension systems, 52.3% of delegates chose to ‘maintain the current basic pension structure’. The response that chose ‘gradual reduction of basic pension coverage’ was 45.7%, which was within the margin of error.

68.3% were in favor of ‘forming a discussion body’ for occupational pensions such as civil servant pensions and military pensions, 69.5% were in favor of ‘increasing insurance premium rates’, and 63.3% were in favor of ‘freezing salaries for a certain period of time’.

Among the measures for ‘intergenerational equity’, there was a high rate of agreement on ‘guaranteeing national pension payment obligations’ (92.1%) and ‘improving fund returns’ (91.6%).

Regarding retirement pension, the opinion of ‘converting to a semi-public pension’ was the highest at 46.4%, followed by ‘strengthening early withdrawal requirements’ (27.1%) and ‘maintaining the current status’ (20.3%).

The sampling error of this survey is ±4.4%p at the 95% confidence level.

The National Assembly’s Pension Special Committee plans to discuss pension reform plans based on the survey results. The plan is to process the agenda within May, when the 21st National Assembly ends.

Reporter Kim Jeong-hyeon Photo News 1

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2024-04-22 07:40:30

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