By Bae Ji-sook
Staff Reporter
The presidential transition team said Monday that the incoming government will reform the National Pension Service and other public pensions.
The team said it will decide the details of the restructuring later, but team officials said that the payout will be proportional to the amount of premium a subscriber has paid. At the same time, the pension for the elderly will likely be integrated with the National Pension, they said.
The plan, which the Ministry of Health and Welfare reported to the transition team Monday, came after criticism that the national pension is not fairly delivered to each subscriber. Some raised suspicion that the self-employed report less income to pay less premium, but still receive more pension in the end.
Also, the current premium rate of 9 percent of monthly income will be reduced, which will leave the National Pension with less payments and less benefits.
The pension for the elderly will be raised from the current 84,000 won to 20 percent of an average subscribers' monthly income.
``At the time of ageing society, we thought bringing up the elderly pension will be more effective for the growing silver population,'' a transition team member said.
Alongside the streamlining of the national pension, special public pensions such as those for government employees will face drastic reform. The Government Employee Pension Service will see government subsidies decrease going forward.
Pension reform was one of President-elect Lee Myung-bak's main pledges. During the election he vowed to facelift the ``inefficiency'' in the sector. The team will form a special task force to deliver a plan by the end of the year.