The People Power Party urged on the 24th to determine the income replacement rate (the percentage of the received amount) at 42 to 43% through an agreement between the ruling and opposition parties concerning the national pension reform.
Yoon Hee-sook, head of the Yeouido Institute, said at an emergency response committee meeting that was held in the National Assembly on this day, "It was during President Roh Moo-hyun's administration that it was decided to reduce the income replacement rate to 40% by 2028," adding, "To raise the income replacement rate again is to overturn the agreement made during President Roh Moo-hyun's time. I can't raise my face to our youth."
She added, "The People Power Party proposed to increase the income replacement rate to 42% last year. This was because it was judged that the only way to raise insurance premiums was through compromise with the opposition party."
She continued, "Can you explain why you want to raise it back to 44% while looking our youths in the eye?" and requested, "Let's discuss how to reach an agreement on the 42% proposed by the government and ruling party and the 44% proposed by the Democratic Party, considering the youth's perspective."
Regarding the opposition party's plan to forcibly process pension reform, she criticized, "It would be an unprecedented situation for a party that has reformed the national pension to handle it unilaterally." She added, "It is only natural that it passes through an agreement because it is too important for the future of the entire country." The Democratic Party plans to forcefully process the national pension reform bill within this month if no agreement is reached.
The ruling and opposition parties reached a consensus on raising the national pension premium rate from the current 9% to 13%. However, discussions are stalled due to disagreements over the income replacement rate. The People Power Party is advocating for an adjustment of the income replacement rate to 42% to 43% on the premise of introducing an automatic adjustment mechanism, while the Democratic Party is insisting on 44 to 45%.
At the 'four-party meeting' of the ruling and opposition parties and the government on the 20th, the lack of agreement on the income replacement rate prevented any resolution.
Shin Dong-wook, the chief spokesman, met with reporters after the emergency committee meeting and conveyed, "We believe that the income replacement rate must be lowered to 40% for the sustainability of the pension, but since no negotiations are possible at all, it was suggested that we consider raising it to 42%, which led to discussions on the 43% proposal. However, the Democratic Party insisted on 44% until the end." He also noted, "The Democratic Party claims that our party had also brought up the 44% issue, but we have never brought it up, so we could not accept that part."
He added, "Our party's position was to incorporate an automatic adjustment mechanism into the 43%, but Representative Lee Jae-myung said, 'Since the government will unilaterally cut in the future, we cannot accept the automatic adjustment mechanism,'" and reported that, "The government side said, 'Even if there is a situation of cutting, it must be approved by the National Assembly, so there is no need to worry too much.'"
He continued, "The Democratic Party expressed, 'How important can that 1 percentage point be for you to insist so much?'" and confirmed, "The government side stated that 'the difference of 1 percentage point is very significant,' and hence it was confirmed that discussions broke down."