The National Assembly's Health and Welfare Committee noted on the 19th that there has been progress in discussions between the ruling and opposition parties regarding the national pension model reform proposal and that a conclusion has been reached. This comes five days after the Democratic Party accepted the ruling party's proposal of '43% income replacement rate' on the 14th, while still bickering over the wording of the National Assembly's special committee on pensions (Pension Special Committee) formation. With a consensus formed within the standing committee, there is a possibility that it could pass the National Assembly's plenary session as early as the 20th.
Park Jumin, the Chairperson of the Welfare Committee and a member of the Democratic Party, discussed the pension reform proposal with the party secretaries and Kyu-hong Jang, the Minister of Health and Welfare, at the National Assembly that day. Lim Mi-ae, the ruling party's secretary, said after the meeting, "We have reached an agreement among ourselves, and the rest must be done according to the procedures set by the National Assembly Act," adding, "We must explain our discussions to each party and persuade them."
Kang Seon-woo, the opposition party's secretary and a member of the Democratic Party, also stated, "Significant progress has been made, and a conclusion has been reached," adding, "Now, the procedure for persuading each stakeholder remains, and that must be completed."
Thus far, the ruling and opposition parties have been in conflict over whether to include the phrase 'joint agreement processing' in the formation proposal for the Pension Reform Special Committee. After beginning discussions on pension reform from the 21st National Assembly, they barely reached an agreement on '13% premium rate (the percentage of money paid) and 43% income replacement rate (the percentage of money received)' but got stuck again. The contentious issue was whether to include the phrase 'will be processed by mutual agreement of the ruling and opposition parties' in the formation proposal for the Pension Special Committee, which has a majority from the opposition party.
The Pension Special Committee will consist of six members from the People Power Party, six from the Democratic Party, and one from a negotiating party (Justice Party). The opposition has one member more. The People Power Party has demanded the 'joint agreement processing' phrase, asserting that if the opposition does not cooperate after the model reform (revising the premium rate and income replacement rate), it will be difficult to achieve structural reform (establishing measures for pension financial stability).
However, Kweon Seong-dong, the floor leader of the People Power Party, stated that day, "If the Democratic Party clearly shows its willingness for joint agreement processing on structural reform, we will launch the Pension Special Committee without the sentence 'joint agreement processing'," noting that negotiations have gained momentum. If the ruling and opposition party leaders reach an agreement, it could be presented as an agenda item at the plenary session on the 20th.
Chairperson Park stated, "It seems that rapid processing will be possible due to significant progress in the meeting with the ruling and opposition parties, and while discussing various issues that might be obstacles, there has been overall progress. If the remaining issues are sorted out, it is likely that (joint agreement processing) will happen."