The ruling and opposition parties have tentatively agreed on the national pension parameter reform, with a premium rate (amount paid) of 13% and an income replacement rate (amount received) of 43%, but a tough struggle is expected as they are at odds in the final stages. The two parties are in a standoff over whether to insert the phrase 'agreement processing' when the National Assembly pension special committee is launched.
Kweon Seong-dong, the floor leader of the People Power Party, expressed hope that the amendment to the National Pension Act could be processed quickly once agreement is reached on the formation of the National Assembly pension special committee.
During a press briefing that afternoon, he said regarding the inquiry, 'When do you expect the bill to be processed?' 'I think it could be processed right away once the government's position on the prerequisites is released and an agreement is reached between the two parties regarding the National Assembly pension special committee.' He added, '(The parameter reform plan) is in an agreed state' and noted that 'practical consultations between the policy chairs of the two parties are scheduled.'
Earlier, the ruling and opposition parties reached a broad agreement on the parameter reform in the pension reform. The Democratic Party indicated on the 14th that it would accept the 'income replacement rate (ratio of the amount received) of 43%' plan proposed by the People Power Party. The Democratic Party presented three conditions on the 14th for accepting the '43% plan': ▲ a formalization of state payment guarantees, ▲ expansion of credits for childbirth and military service, and ▲ increased support for insurance premiums for low-income groups. The ruling party believes these conditions could be discussed smoothly as they are also included in the pension law proposed by the government.
Political circles anticipate that the amendment to the National Pension Act containing the parameter reform plan could pass through the relevant National Assembly standing committee, the Health and Welfare Committee, as early as next week.
However, the ruling and opposition parties are locked in a last-minute struggle regarding the 'agreement processing clause' when forming the National Assembly pension special committee.
The two parties agreed to constitute the pension special committee with 6 members from the People Power Party, 6 members from the Democratic Party, and 1 member from a minor negotiating group. However, the People Power Party insists that the clause 'processed with bipartisan agreement' should be included in the composition plan of the special committee, while the Democratic Party firmly asserts that it is unnecessary. As the People Power Party is set to hold the chairperson position of the special committee, there appears to be concern that formalizing 'agreement processing' could lead to the ruling party losing control of the pension reform negotiations.
In a press briefing that day, Joo Seung-rae, the Chief Spokesperson of the Democratic Party, stated, 'The parameter reform was decided to be processed through agreement in the standing committee separately, but the People Power Party is linking this to the formation of the pension special committee, saying it cannot be done otherwise. This is incomprehensible, and according to the agreement, the parameter reform plan should be processed next week, and the pension special committee should be formed afterwards.'
A key official of the ruling party at the National Assembly's Health and Welfare Committee said, 'The phrase 'agreement processing' has always been present (during committee formation) in the past. It feels like the opposition party is saying they will not do structural reform.'