The Democratic Party of Korea and the Ministry of Employment and Labor (MOEL) decided to pass within the year a plan to make retirement pensions mandatory at all business sites and to convert them into funds.
Han Jung-ae, the Democratic Party policy committee chair, held a party-government consultation with the Ministry of Employment and Labor at the National Assembly on the morning of the 23rd and said, "The tripartite declaration is a very encouraging outcome that, 20 years after the system was introduced, revitalizes fund-type retirement pensions and agrees to mandate off-balance-sheet funding," stated accordingly.
Earlier, the "labor-management-government task force (TF) to strengthen the function of retirement pensions" announced on the 6th a joint declaration that included mandating retirement pensions and converting them into funds. It also included content such as a fund for small and medium-sized enterprise retirement pensions, a phased expansion of retirement pension funds to those with 300 or fewer employees, and mandating off-balance-sheet funding of retirement benefits.
Han said, "The party and the government will communicate closely to prepare and pass the amendment within the year," and added, "The government should carefully devise tailored support measures based on a fact-finding survey so that small business owners do not feel a sudden burden due to changes in the retirement pension system."
Kim Ju-young, a Democratic Party lawmaker who serves as the ruling party secretary of the National Assembly Climate, Energy, Environment and Labor Committee, met with reporters after the meeting and said, "There were items on the licensing requirements, operation framework, and supervision for fund-type retirement pensions," and added, "There was also an explanation that the Korea Workers' Compensation & Welfare Service (K-COMWEL) would increase its professional staff to expand expertise in fund management."
He went on to say, "The government also announced it would review measures such as phasing in the mandate for off-balance-sheet funding of retirement benefits and whether to apply it first to new hires starting with the public institutional sector," and added, "Support measures for small business sites will also be prepared going forward."