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Abstract ▼ AI-Helper

It needs further discussion about NP(National Pension) reform because basic direction of the income security for the elderly is determined. This Paper proposes goals of the NP reform and principles of the institution design and seeks appropriate reform model to satisfy them. The reform model of the ...

It needs further discussion about NP(National Pension) reform because basic direction of the income security for the elderly is determined. This Paper proposes goals of the NP reform and principles of the institution design and seeks appropriate reform model to satisfy them. The reform model of the MOHW(Ministry of Health and Welfare) and the ruling party is impossible to secure the right income after retirement. The level of Basic Old-Age Pension for some old-age people is low and the reduction of the NP is sure for reason of introduction of that. The reform model of the Grand National Party can resolve the not-secured brackets as introduction of the Basic Pension. However it is contradictory to financing plan by increasing VAT which cause regressive income redistribution. The reform model as the main point of introduction of the NDC(National Defined Contribution) Earnings Related Pension and SGP(Supplementary Guaranteed Pension) has the merits of national acceptance and stability of pension finance by strengthening relation of contribution and benefit. But SGP is covered formal sector workers only because its coverage and benefits are determined according to a record which defines NDC Earnings-Related Pension. The reform model of the Democratic labor Party is to resolve the not-secured brackets by introduction of the Basic Pension and is to arrange income replacement rate of NP by the benefit level. This model has a weakness of financing required the Basic Pension. However it is the most possible alternative which resolves the main current problems of the not-secured brackets, financing stability, and security of the right benefits.

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