• Journal of Families and Better Life
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• v.21 no.1
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• pp.61-72
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• 2003

This study examines the problematic fact that most housewives are excluded from receiving the benefits of the National Pension Plan in South Korea. The National Pension Plan assigns no value to housework or household production, which in turn discourages full-time housewives from participating voluntarily in the Plan. In this article, I propose to utilize Credit Splitting and Pension Sharing in order to take into account full-time housewives' economic contribution in the National Pension Plan. In this article, I also discuss the ranges and application methods of the Credit Splitting and Pension Sharing. For this study, I have analyzed the data of 11,967 unemployed married women living with spouses published in“Research Data on Everyday Life Time Usage”by the Korea National Statistical Office in 1999. The value of the full-time housewives' labor varies depending on the methods of estimation. However, all estimated values exceed the average value assigned to the housewives by the National Pension Corporation. It is clear that full-time housewives' unpaid labor contributes a great deal to the formation of household property and wealth, which is a valid reason for Pension Sharing and Credit Splitting. This article also provides logical factors to consider in the process of Pension Sharing and Credit Splitting, which can be used for developing computerized software to determine a full-time housewives' labor value at the time of divorce or for any other purpose.

• The Korean Journal of Applied Statistics
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• v.28 no.4
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• pp.827-845
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• 2015

This study evaluates and suggests a new reform plan that overcomes the limitations of the Government Employees Pension Scheme (GEPS) reforms in 2015. Research results indicate that the reforms were insufficient in terms of financial sustainability, functional transparency, and equity. Debates on the GEPS reforms will continue until an equitable solution is found. The priority of the next reform plans should lie in the unification of public pension schemes. In contrast to previous reform proposals, this study suggests a reforms plan, which should result in not the parametric change but the structural change in GEPS. The distinctive point of the new reform plan lies in translating a single-tire into a multi-tire pension system. Accordingly, the new GEPS should consist of a 'National Pension Scheme (NPS)', occupational pension (additional pension), and retirement allowance. Newly appointed government employee officials should be enrolled in the NPS. This study stresses that inequality between the public pension systems will be alleviated and a pension system of social solidarity will be established when the NPS develops in to a basic old age income security system for all citizens including civil servants.

• The Korean Journal of Franchise Management
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• v.7 no.2
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• pp.27-35
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• 2016

Purpose - The primary objective of this study is to investigate the impact of employee characteristics on employees' preference towards corporate pension products. This study can provide a guidance for maximization of benefits for employees and their affiliated corporation. Employee characteristics include average length of labour, wage system of annual salary, age, types of interest rates and size of corporation. Existing research generally concentrate on vitalizations of corporate pension product raising an imperfection, improvements, tax benefit analysis and legal consideration. Thus, this study intensively analyses the effect of employee attributes on firms' decision for corporate pension products, such as DB(defined benefit) and DC(defined contribution) type. Research design, data, and methodology - The data were collected using self-administrated questionnaire survey on corporate pension products from CEOs or HR directors 250 foreign-invested companies', purchasing pension plans in practice with domestic financial trustees (insurance companies, banks and security companies). Hypotheses testing was conducted using Logistic Regression analysis with SPSS/PC+ 21.0. Results - The findings of the study are as follows. Employees with the long length of labour are more likely to have DB plan; more likely to prefer DC plan with the dividend distribution product regarding the types of interest rate. SMEs(less than 100 employees) are more likely to select DC plan whereas high fluctuation in wage with annual salary has no impacts. In addition, the ages has no significant effect on the preference. Conclusions - This study has examined with the empirical testing that employees' variable attributes and qualities are one of the vital factors for corporation pension plan selection. Currently, majority employees are highly likely to join DB plan and Defined interest types. Corporation with less than 10 employees prefer IRP scheme while most of corporation are intended to join DC plan. In a very near future, corporation more than 300 employees will be required to purchase mandatory plan under national regulation. For maximization of employees' contentment to corporation pension insurance and for complementing the flaws of existing plans, the future studies shall also research in a perspective of employee benefit.

• Journal of the Korean Data and Information Science Society
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• v.25 no.1
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• pp.131-153
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• 2014

The Korean market of pension plans has recently increased and pension plans will be expected to play an important role in the retirement system as complement of the national pension system in the future. However, there are a few of research papers on actuarial projections of pension plans. This paper will discuss a long-term financial projection on defined pension plans using data based on the national pension workplace participants. Previous researches focused on company-based financial projection of pension plan. But, this paper concerns on total Korean pension participants and suggests a method to calculate future financial projection of total pension plans. Finally, this research will suggest several numerical results of normal costs, benefits, numbers of workers, etc.

• Korean Journal of Social Welfare
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• v.63 no.1
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• pp.343-368
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• 2011

This Study aims to criticize national pension fund governance reform plan of Korea government and to search for an alternative direction of the reform. Firstly, I examine the theoretical basis of the Korean government reform plan by clarifying limits of application of agency theory to the public pension fund governance. Secondly, I try to reconstruct principles of the public pension fund governance with an alternative theoretical view emphasizing democracy principle. Thirdly, I evaluate the government reform plan with the basis of reconstructed pension fund governance principles. The government reform plan is expected to cause retrenchment of democracy and even political autonomy. It also would make worse the problem of pension fund autonomy from the financial market and the risk of the pension fund caused by market turbulence. Finally I suggest alternative direction of the pension fund governance reform emphasizing the democracy principle. This direction contains constructing co-determination structure of the state and the civil society, escalating controling power of the governing body to the administration body, setting the limits of the roles of the state, attaining of the autonomy from the financial market, strengthening organizational and social accountability.

• KDI Journal of Economic Policy
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• v.13 no.1
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• pp.115-134
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• 1991

The role of pension plans in the macroeconomy has been a subject of much interest for some years. It has come to be recognized that pension plans may alter basic macroeconomic behavior patterns. The net effects on both savings and labor supply are thus matters for speculation. The aim of the present paper is to provide quantitative results which may be helpful in attaching orders of magnitude to some of the possible effects. We are not concerned with the providing empirical evidence relating to actual behavior, but rather with deriving the macroeconomic implications for a alternative possibilities. The pension plan interacts with the economy and the population in a number of ways. Demographic variables may thus affect both the economic burden of a national pension plan and the ability of the economy to sustain the burden. The tax transfer process associated with the pension plan may have implications for national patterns of saving and consumption. The existence of a pension plan may have implications also for the size of the labor force, inasmuch as labor force participation rates may be affected. Changes in technology and the associated changes in average productivity levels bear directly on the size of the national income, and hence on the pension contribution base. The vehicle for the analysis is a hypothetical but broadly realistic simulation model of an economic- demographic system into which is inserted a national pension plan. All income, expenditure, and related aggregates are in real terms. The economy is basically neoclassical; full employment is assumed, output is generated by a Cobb-Douglas production process, and factors receive their marginal products. The model was designed for use in computer simulation experiments. The simulation results suggest a number of general conclusions. These may be summarized as follows; - The introduction of a national pension plan (funded system) tends to increase the rate of economic growth until cost exceeds revenue. - A scheme with full wage indexing is more expensive than one in which pensions are merely price indexed. - The rate of technical progress is not a critical element in determining the economic burden of the pension scheme. - Raising the rate of benefits affects its economic burden, and raising the age of eligibility may decrease the burden substantially. - The level of fertility is an element in determining the long-run burden. A sustained low fertility rate increases the proportion of the aged in total population and increases the burden of the pension plan. High fertility has inverse effects.

• The Korean Journal of Community Living Science
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• v.17 no.3
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• pp.67-87
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• 2006

This study examined how middle-aged jobholders anticipate their living after retirement, how they plan their post-retirement financial welfare and what attitude they have towards old age. The data came from 290 middle-aged male and female people in Incheon, Suwon and Cheongju city and were analyzed to find the differences among public planned pension types, such as the National Pension System (NPS), the Government Employee Pension Corporation (GEPC), and the Korea Teachers Pension (KTP). The major results were as follows: First, the expected income level after retirement in GEPC members was the highest and the lowest in KTP members. Second, the expected living period after retirement is the main criteria used when determining the amount of money needed for old age. Third, KTP members were of the most inferior at financial planning and practice, especially self-reflection of their expending behavior, thrift and saving practice for old age.

• Korean Journal of Social Welfare
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• v.66 no.3
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• pp.231-251
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• 2014

Recently, Korean government documented the plan to cope with the situation related to rich pensioners of Basic old-age pension. The purpose of this paper is to verify that how many rich pensioners are existing and to evaluate government reform plan's validity and effect. Main results are as follows; firstly, if the definition of rich pensioners is on the top 10%, the proportion of them would form 2.9% of total. And then, an amount of expenditure for them is only 2.6% of total. Secondly, in terms of disposable income, debt, and transfer income from child, the household who would be applied by government's plan is not richer than other household who is in the same living standard. And then, if the government's plan enforced, the effect might be very small. Lastly, the plan of government will discriminate against persons who support their parent. As a result, Basic old-age pension will be worsen. This paper should underline that the government's reform is only the 'hidden' retrenchment strategy in order to introduce a standard of the obligation to support own parent in the state without scientific prediction and serious discussion of negative public opinion. That is why, this is the same as the 'Trojan Horse'.

• The Journal of the Korea Contents Association
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• v.16 no.4
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• pp.170-178
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• 2016

This study analyzed difference in national pension receipt on life satisfaction and successful aging in people aged 60 or over, and then analyzed influence factors on them. As a result, The difference of receipt affected life satisfaction and successful aging. This means a large receipt is related to high life satisfaction and successful aging. The regression analysis result also showed the difference of receipt was significant in life satisfaction, but wasn't significant in successful aging. National pension receipt can increase life satisfaction by providing financial security, but for successful aging, social supports like good use of spare time are needed. Also, currently satisfaction with national pension receipt was low and receipt wasn't enough to stabilize their lives. Therefore, a political plan for improving receipt satisfaction and living a stable life through good use of spare time will be required in future.

• The Journal of the Convergence on Culture Technology
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• v.4 no.4
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• pp.201-206
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• 2018

The fourth fiscal estimate of the national pension following the aging of the population and falling yields estimated that the fund ran out in 2057, three years earlier than the third fiscal calculation. Accordingly, the government proposed a plan to immediately raise the insurance premium rate by 2 percent and maintain the income replacement rate by 45 percent, and to reduce the income replacement rate by 40 percent in 2028. In this form, increasing premiums and reducing income replacement rates will allow younger generations to sign up differently from existing subscribers, who previously had higher income replacement rates at lower rates. Therefore, the study aims to ease the burden on the elderly and younger by applying different insurance rates and income replacement rates for different ages.