The National Assembly reached a consensus on a national pension reform plan of 'paying more and receiving more' for the first time in 18 years, but the political aftershocks are growing. Some members of the 30-40 generation are expressing bipartisan opposition, while in the ruling party's potential presidential candidates, demands for the acting president's right to request reconsideration (veto power) have emerged. This suggests that the 86 generation (those born in the 1960s) is monopolizing pension benefits and shifting the burden onto the younger generation.
Lee Jun-seok, a member of the Reform Party, stated at a National Assembly press conference on the 24th, "A coalition of politicians to stand against the cowardly collusion is urgently needed," and suggested discussing pension reform issues with fellow ruling party presidential candidates, People Power Party's Ahn Cheol-soo, former lawmaker Yoo Seung-min, and former leader Han Dong-hoon. All of them had expressed opposition to the national pension amendment passed in the National Assembly on the 20th.
Lee said, "The Reform Party voted against the national pension law amendment as a party position, but our voices, which number only three, couldn't overcome the collective inertia of collusion," and added, "In the current situation where the two major parties have colluded, even if those who had disagreements in the past come together, we must cooperate to solve the issues."
◇ Ruling and opposition parties 3040 'bomb for the youth'... Han: '86-generation is living off honey'
The day before, lawmakers from both ruling and opposition parties jointly issued a statement of opposition. People Power Party members Kim Jae-seop, Woo Jae-jun, and Kim Yong-tae, Democratic Party members Lee So-young, Jang Chul-min, and Jeon Yong-ki, along with Reform Party members Cheon Ha-ram and Lee Joo-young, stated at a National Assembly briefing, "For the national pension system to be sustainable, ultimately 'someday' and 'someone' has to make up for the shortfall," adding, "If we keep deferring to future generations, we are ultimately throwing a bomb at the current youth generation."
They argued that the majority of the future National Assembly Special Committee on Pensions should consist of 30-40 generation lawmakers. They also emphasized that the revenue from the 'pension income tax' paid by pension recipients should be automatically invested into the national pension.
Former representative Han Dong-hoon wrote on social media the same day, "The 86 generation, which receives more pensions, is enjoying honey, while the youth generation, which must pay for decades to receive pensions, bears the brunt of it," and noted, "Discussions should resume after exercising veto power." Ahn Cheol-soo, who abstained from voting on the pension reform plan, also commented, "To reform the national pension, all three major pension systems—the civil service pension, private school pension, and military pension—must also be reformed."
However, the possibility of Acting President Han Duck-soo exercising veto power is nearly nonexistent, as the law passed during a plenary session with the agreement of the ruling and opposition party leadership. While some within the People Power Party's pro-Young faction have expressed opposition, it does not seem likely to lead to the exercise of veto power. This suggests that discussions on structural reforms will take place at the National Assembly special committee level, but overturning existing agreements will not be easy.
◇ 'The money paid' increases slowly, while the money received immediately rises next year
The national pension law amendment passed in the plenary session on the 20th includes provisions to ▲raise the contribution rate (the money paid) from 9% to 13% over eight years by 0.5 percentage points each year starting next year, and ▲increase the income replacement rate (the money received) from the current 41.5% (40% in 2028) to 43% starting next year.
Lee Jae-myung, leader of the Democratic Party, praised the Assembly, stating, "The National Assembly finally did its job," but within the opposition party, there is increasing backlash, with claims that it is a "deal that shifts burdens and responsibilities onto young people." Kim Dong-yeon, the governor of Gyeonggi Province and a former Minister of Economy and Finance during the Moon Jae-in administration, criticized it, saying, "It shifts more burdens and responsibilities to future generations," describing it as "a 60-point measure that just passes the threshold."