hankyoreh

By Son Jun-hyun, senior staff writer

The government People’s Happiness Pension Committee, which is drawing up the framework for the basic pension that is a major component of welfare for the elderly, is facing criticism for backing down from President Park Geun-hye’s campaign pledges. Not only is the committee leaning toward narrowing eligibility for the basic pension from all elderly people to the lower 70-80% of earners, but there are also signs that it will decrease the amount of pension money provided. Civic organizations have quickly stepped forward to strongly denounce signs of backpedaling by the South Korean government and the committee.

The committee held its fifth meeting at the Ministry of Health and Welfare located in Seoul’s Gye neighborhood on June 18. The committee reached an agreement that elderly people from the top 20-30% income bracket should not be eligible for the basic pension, which is scheduled to take effect in July 2014. After this, committee members discussed ways to vary the amount of the pension according to the income level of the recipients.

During the meeting, two positions were evident: providing basic pension only to those elderly people (over 65 years old) who are in the lower 70-80% income bracket, or providing it to all elderly people. Generally, committee members who do not favor providing the pension to elderly people in the top 20-30% income bracket were reported to have the upper hand. As a result, it is becoming more likely that the new basic pension will be similar in its scope to the current basic elderly pension. Under the current system, elderly people in the lower 70% income bracket receive a maximum of 96,000 won a month ($84.86).

In regard to the amount of payment, there was no disagreement about providing pensioners with up to 200,000 won a month. However, there was heated discussion about varying the amount of payment according to income level, a source at the Ministry said on condition of anonymity. In regard to how the payment should be varied, views differed, with some arguing that the maximum 200,000 won a month should be given to the lowest 40% income bracket, with others suggesting that it be given to the lower 60%.

While South Korean President Park Geun-hye pledged last year during her presidential campaign to give every elderly person 200,000 won per month in basic pension, the presidential transition committee suggested varying the amount of pension paid from 40,000 won to 200,000 won depending on when they registered for the national pension. This led to allegations that this was unfair to those who had contributed to the national pension plan, because it meant that those who hadn’t contributed who receive the same money. Therefore, some contributors left the pension program.

The committee members also agreed that the name “basic pension” should be used instead of “happiness pension”. “The committee members seem to think that the word ‘happiness’ might connote a specific administration,” explained Ryu Geun-hyeok, manager of national pension policies for the Ministry. The ministry is planning to draft a proposal based on the results of the discussion and submit it to the National Assembly in the fall.

Following the People’s Happiness Pension Committee moves to reduce both the number of elderly people eligible for the pension and the amount of money they receive, there has been a gradual increase in criticism that the government is going back on campaign pledges.

A group founded to rectify the public pension, which includes various civic organizations including the People’s Solidarity for Participatory Democracy (PSPD), held a meeting in front of the Ministry on Jun. 18 to denounce the watering down of the campaign pledge about the basic pension.

“The People’s Happiness Pension Committee’s deliberation about the basic pension represents a retreat not only from the campaign pledge made by President Park, but also the proposal submitted by the presidential transition committee,” the group said. “As such, it is unacceptable. The government must pay 200,000 won in basic pension to all elderly people over 65 years old.”

The question of the real purpose of the committee has also been mooted. “I got the impression that the Ministry of Health and Welfare is trying to lead the committee toward decreasing the number of people eligible for the pension and the amount they receive,” said Kim Gyeong-ja, a member of the committee who was present at the meeting. Kim is vice chair of the Korean Confederation of Trade Unions.

“It is a shame that we have lost the principle of universality, which demands that every elderly person receive the pension,” said Kim Dong-man, vice chair of the Federation of Korean Trade Unions, who also took part in the meeting. “I suggested holding a public hearing so we could have a more objective discussion.”

"The proposal is going to be adjusted anyway when it gets to the National Assembly,” Kim Dong-man said. “The committee really should not backpedal like this.”

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