The presidential transition committee is promoting means to increase beneficiaries for Korea’s basic old-age pension, which currently supports the lower 60 percent bracket of Korea’s over 65-year old elders to 90 percent range. Moreover, the government employees’ pension will be amended to eliminate excess benefits and further specific measures will be finalized in July.

The transition team prepared a revised public fund plan on Monday and is to report to President-elect Lee Myung-bak on January 5.

An official from the transition team disclosed, “After merging the current basic old-age pension and national pension, means to increase the number of beneficiaries for the previous basic old-age pension will be promoted to cover 90 percent of Korea’s elderly population. However, the Participatory Government’s plans to expand the basic pension payout from the current rate, which accounts to 5 percent of the average monthly income of overall national pension subscribers, to 10 percent by 2028 will be maintained.”

The official continued, “Although the detailed schedule of expanding basic pension beneficiary base is yet to be concluded, the plan will be executed during the new government’s term in office.”

This year’s basic old-age pension pays maximum 84,000 won monthly per over 65-year old citizen included in the lower 60 percent income bracket. The Participatory Government’s plan to stretch the basic old-age pension recipient scale to include 70 percent of lower elderly class by next year. However, the presidential transition team plans to stretch this range further to 90 percent. If the presidential transition team’s measure is practiced, an additional 1 million elders will benefit from the basic old-age pension with the requirement of an extra 1 trillion won financing annually, estimated the transition committee.

[Dong-eun Lee / KHS]

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