Chung urges civil servants to back pension reform
Prime Minister Chung Hong-won releases a statement on a civil service pension reform bill at the government complex in Sejong City, Thursday. / Yonhap
By Shim Jae-yun
Prime Minister Chung Hong-won Thursday underlined the need for civil servants to cooperate with pension reform.
Chung pointed out that reform of the debt-ridden pension plan has become inevitable to ensure its sustainability.
The government and the ruling Saenuri Party have been pressing for a pension revamp, despite fierce resistance from state employees. The government’s plan features ways of reducing the growing deficit, which is blamed on the increasing average life span of pension beneficiaries.
The ruling party has its own draft reform plan that focuses on delaying the eligible age for the pension from 60 to 65, while raising the proportion of contributions from 7 percent of their salary to 10 percent.
In a public statement, Chung said, “I hope public servants will fully understand that pension reform is essential to lessen the burden on taxpayers and make the pension program more sustainable.”
Chung called on unionized civil servants to refrain from taking collective action against the reform drive.
Unionized members have gone all out in protesting the government’s reform plan, disrupting several forums designed to discuss the issue.
“We will press ahead with the plan. We will find a solution to the fundamental problems of the current pension system by changing the rates of contributions and payments, as well as delaying the pension age,” Chung said.
He also expressed concern over the possibility the pension fund will be drained unless the current system is revised. The prime minister then cautioned against passing a ballooning deficit to other citizens and eventually on to the next generation.
Chung’s statement referred to the nation’s average life expectancy, which has risen by some 30 years since the pension system was first introduced.
Given this fact, the number of people receiving pensions has increased phenomenally alongside an extended pension dependence period.
“We need to address this issue for the sake of the nation’s future.” While emphasizing that the government is demanding a one-sided sacrifice on the part of the civil servants, Chung pledged to take measures to improve working conditions and provide other benefits for them should they cooperate with the government.
Meanwhile, a group of 29 vice-ministerial level officials expressed support for the pension reform.
Their move will be followed by 23 ministers who will reveal support for the plan early next week during a meeting at Cheong Wa Dae.