• Title/Summary/Keyword: Non-Contribution Pension

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The Excluded from Public Pension : Problem, Cause and Policy Measures (공적연금의 사각지대 : 실태, 원인과 정책방안)

  • Seok, Jae-Eun
    • Korean Journal of Social Welfare
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    • v.53
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    • pp.285-310
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    • 2003
  • As National Pension Scheme for all nation complete in 1999 through expanding application in cities, the public pension including Public Occupational Pension became main axis of old-age income maintenance. After 4years since then, now, it is only half of total National Pension insured persons who have been qualified to receive pension through participate and contribution. The other half of National Pension insured is left the excluded from public pension. This paper is intended to identify scale and characteristics of the excluded from public pension and to analysis its cause, and to explore policy measures for solving the excluded's problem. for current recipients over 60 years old generation, the its excluded's scale is no less than 86% of the old over 60 years. The probability of getting in the excluded is high in case of old elderly and female for current elderly generation. For future recipients 18-59 years working generation, the its excluded's scale is no less than 61% of the 18-59 years total population. The probability of getting in the excluded is high in case of 18-29 years and female for current working generation. As logistic regression analysis determinant factor of paying or not pension contribution for future recipients, it appear that probability of getting in the excluded for current working generation is high in case of younger old, lower education attainment, irregular employee, working at agriculture forestry fishery sector, construction sector, wholesale retail trade restaurants hotels sector, financial institution and insurance real estate renting and leasing sector in comparison with manufacturing sector, occpaying at elementary occupation, professionals technicians and associate professionals, sale and service workers, plant machine operators and assemblers, legislators senior officials and managers in comparison with clerks. The Policy measures for the current recipient old generation have need to reinforce supplemental role of Senior's pension(non-contribution pension) until maturing of public pension, because of no having chance of public pension participants for them. And the Policy measures for the future recipient working generation have need to restructure social security fundamentally corresponding with social-economic change as labour market and family structure etc. The pension system has need to change from one earner one pension to one citizen one pension with citizenship rights. At this point, public pension have need to manage with combining insurance's contribution principle and citizenship principle financing by taxes. Then public pension will become substantially universal social network for old-age income maintenance and we can find real solution for the excluded from.

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Restructuring of the Old-Age Income Maintenance System and Development Direction of the Seniority Pension Scheme in Korea (노령소득보장체계의 재구축과 경로연금제도의 발전방향)

  • Seok, Jae-Eun
    • Korean Journal of Social Welfare
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    • v.50
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    • pp.235-263
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    • 2002
  • The present study is designed to explore restructuring direction of the old-age income maintenance system and development direction of the Seniority Pension Scheme(SPS) in Korea. While the SPS is trifling scheme with tiny benefit amount and small budget, the SPS has important role that function as only public income maintenance scheme for both the low income class and the excluded from public pension and public assistance at present stage because of immature National Pension. This study starts with the research question why serious mis-matching problem between needs and resources in old-age income maintenance system occur. Thus this study explores fundamental change direction of the old-age income maintenance system which is coincide with further situation change(demography, labour market, family structure). Also this study explores desirable SPS's development direction as taking into account relation with other public old-age income maintenance system. This paper suggests basic direction of old-age income maintenance system as follows: principle of universal and individual security; principle of sustainability; principle of equity. Under general principle, this paper also proposes largely two development scenario of the SPS. The one is to maintain present transitional and provisional scheme with trying scheme's substantiality. The other is to change into permanent old-age income maintenance scheme for the excluded public pension and public assistance. At this point it is the public pension's role that the SPS's development direction is determined. If the public pension keep one pension per one earner as present system, non-contribution pension as present SPS should maintain continuously. However, if the public pension reorganize into basic pension of one pension per one person and earning-related pension, the SPS should be managed temporarily until mature of public pension. Therefore whether the public pension play basic security role for all elderly or not will determine the SPS development direction.

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The Effect of Farming Labor in Later Life on the Social Welfare Expenditure (노년기 농업노동의 사회복지비용 절감 효과 분석)

  • Yoon, Soon-Duck;Park, Gong-Ju;Kang, Kyeong-Ha
    • 한국노년학
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    • v.25 no.2
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    • pp.109-126
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    • 2005
  • Recently it has been encouraged in developed countries that labor force participation of the elderly is one of the means to cut down the cost of social welfare for them. However, empirical studies have rarely explored how work in later life contributes to national economy. Especially, even though 56.6 percent of elderly workers aged 65 and older engaged in agriculture and forestry in Korea, their contribution has been socio-economically overlooked. This study aims at examining the effect of farming labor in later life on social welfare expenditure. For this purpose, social welfare expenditure was defined as social benefits provided for the elderly by the social security in public sector and measured as transportation allowance, pension, livelihood aid, medical aid, and health insurance in 2003. Data were obtained from National Health Insurance Cooperation and 37 town/village offices and analyzed by 3 age groups; 65~74, 75~84, and 85 and over using SPSS/PC windows program. Results showed that both livelihood and medical support in all age groups were expended more to non-farm than to farm workers. The amount differences per person between them were 113,959~361,132 won in livelihood support and 15,644~51,418 won in medical support. Also, participation in farming influence reduction of livelihood expenditure for the group 65~74 and 75~84 and that of medical expenditure only for the group 65~74. Based on these results, it was estimated the amount of social welfare expenditure reduced by farming labor in later life. The limit of this study and the policy implications of the results are discussed.