• Korean Journal of Social Welfare
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• v.46
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• pp.290-318
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• 2001

In 1981, Chile has fundamentally reformed the public pension system from the pay-as-you-go system (PAYGs) to the full funding defined contribution system managed by the private funding companies. The Chilean privatization reform influenced not only the neighbor South American countries but also the advanced countries. The United Kingdom contracted out the state earning related pension system. Australia and Sweden recently introduced the private investment accounts system. And now the hot debates on the privatization of the social security pension is going on in the United States of America. This wind of privatizing the public pension system is being backed up by the New Liberalism, the nowadays' strongest ideology. Besides, the theoretical and idealogical debate between the World Bank and the ILO/ISSA was happened in the middle of 1990s. The World Bank, the supporter of the international financial capital, insisted the introducing of the full funding individual accounts system and the abolition of the existing PAYGs. The ILO/ISSA apposed the World Bank's policies and advocated the moderate reform of the PAYGs. In this paper, I reviewed the Chilean reform, the World Bank's report and the opposing argument of the ILO/ISSA against it, and analysed the core issues of the two sides. Also, I tried to present the suggestions to the Korean public pension systems. Through the discussing the debate, we made certain of the importance of the basic issues in the social security system like equity vs. adequacy, inter-generational redistribution vs. intra-generational redistribution and welfare vs. economy, once again.

• The Korean Journal of Applied Statistics
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• v.28 no.4
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• pp.643-661
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• 2015

Korea Teachers Pension (private school pension) is a mandatory pension and a social security system for private school teachers to ensure the stability of subscribers by a supplying pension when they (and their dependents) face future economic risk due to retirement or death. Therefore, the Teachers Pension must provide stability and sustainability in regards to adequacy of income and to function as a pension. However, the Government Employees Pension System (GEPS) of Korea (the most representative special occupation pension) recorded a fiscal deficit in 2001 and with an accumulated deficit that is expected to grow; subsequently, various plans for the reform of GEPS have been actively discussed. The Korea Teachers Pension system is based on the GEPS scheme and is not free from the GEPS discussions on reforms of national pension. The current system for the Teachers Pension needs to be improved because it is expected to be depleted within the next 30 years due to low fertility and an aging population in Korea. This study discusses existing Teachers Pension schemes problems and suggests a projection method and revised plans to improve it. We use long-term financial projections of the Teachers Pension to estimate the fund exhaustion point and the minus balance of the financial scale as well as analyze the supply-demand burden structure that reflects the future population structure to propose Teachers Pension reforms that will improve stability and adequacy.

• 한국노년학
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• v.36 no.3
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• pp.809-826
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• 2016

This study analyzed private pension dependency of Korea and U.S. households using the most recent dataset of two countries. For this purpose, 2013 Korean Retirement and Income Study(KReIS) of national pension research institute in Korea and 2013 SCF(Survey of Consumer Finances) of FRB in U.S. were used. The private pension dependency was defined as the proportion of private pension wealth among total financial wealth in each household and tobit model was used to investigate determinants of private pension dependency of the two countries. After controlling for other factors, household income and net worth, age, educational attainment, and health status of householder were crucial determinants of private pension dependency for both countries. Householder's age, educational attainment, and health tend to increase the private pension dependency in Korea and U.S. However, household income and net worth affected the private pension dependency opposite direction. The private pension dependency increased with high level of income and net worth in Korea, while it decreased with high level of income and net worth in U.S. Results of this study provide useful implications for future pension system and policy in Korea.

• 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.

• The Korean Journal of Applied Statistics
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• v.28 no.4
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• pp.603-620
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• 2015

The National Pension of Korea is a public social security system designed to alleviate social risks and poverty that has had a major impact on the quality of life for the aging population. However, a rapidly aging population and low fertility threaten the sustainability of national pension in Korea. The National Pension Research Institute publishes a nancial projection every ve years; consequently, the government has lowered the entitlements for the sustainability of national pension based on the projection results. The current reform of the pension system that arbitrarily reduces the entitlements might detract from the income security role of the national pension for pensioners without accounting for the highest elderly poverty rate in the OECD countries. We first discuss methods for the financial projection of the national pension in terms of population, subscribers, and pensioner projections in order to estimate the pension reserve fund and the financial depletion year. We also conduct a sensitivity analysis for population variables, institutional variables, and economic variables based on pension reserves and the financial depletion year. We evaluate intergenerational fairness between the income hierarchy by conducting a money's worth analysis. Finally, we investigate the possibility of the sustainability of national pension by adjusting pension contributions and entitlements (income replacement rate). A new dependency ratio shows that a simple reform of the national pension does not secure the sustainability of the national pension without adapting a pay-as-you-go system.

• 한국사회복지학회:학술대회논문집
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• 2004.04a
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• pp.457-473
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• 2004

This study purports to contribute to existing literatures and debates about the future of Korean public pension system by introducing the cases of pension privatization in eight Latin American countries. Following the Chilean reform in 1981, many Latin American nations to a varying degree replaced their public pension system with private one, and the performance of those private systems started to emerge. Overall, pension privatization does not appear to be the panacea that some of its advocates have argued. While it seems to remedy existing problems, it is creating new ones. As an unprecedented policy experiment, the pension privatization in many Latin American countries implies that there are a number of risks in the path of privatization.

• 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.

• 사회경제평론
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• v.29 no.1
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• pp.1-29
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• 2016

This paper looks critically, in the light of the Capital Controversies of the 1950s and the 1960s, at the Neoclassical claim that the Funded-Pension system is economically superior to the Pay-As-You-Go (PAYG) pension system. This claim rests crucially upon the inverse relation between the rate of interest and the volume of investment (the investment demand function) and the positive relation between the capital intensity and labour productivity (the 'intensive- form' production function), The Capital Controversies proved that the two relations do not always hold; then, the claim in question loses much of its ground. Further, the absensce of the relations makes plenty room for effective demand in determining the level of income and the volome of employment even in the long period. This positive role of effective demand in the long period highlights the problems of the Funded-Pension system and, at the same time, supports the competitiveness of the PAYG pension system.

• The Journal of the Korea Contents Association
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• v.13 no.5
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• pp.253-261
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• 2013

This study analyzed the preparation characteristics for old age of the baby boomers by the framework of the multi-pillar pension system. Analysis results are as follows. First, multi-pillar pension system's subscription rates of baby boomers was public pension 59%, private pension 11.5% and retirement pension 1.5%. The baby boomers isn't ready for old age life. Second, women and people with the low level of education are less prepared for old age. Third, people in a bad health state are less prepared for old age. Forth, low-income people are less prepared for old age. We must support baby boomers' preparations for old age by establishing income security system for old age. We must establish public pension support policy for the people of the low level of education and economic hierarchy, women, bad health status people, and must introduce universal old-age allowance policy for guaranteeing the minimum income of baby boomers.

• The Journal of the Convergence on Culture Technology
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• v.6 no.4
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• pp.1-8
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• 2020

Existing studies have used a variety of terms related to North Korea's income guarantees, causing some confusion. It can be said that it is a problem that appears only when dealing with the contents of a specific statute in an existing study. To this end, we will look at the laws and regulations related to income security by period and analyze the contents of dictionaries that are also the explanations of the laws and the status of orders and rules. As a result of the analysis, living subsidies are classified into subsidies under the national social insurance system and pension and subsidy under the national social security system. Among them, the pension under the national social security system, which is an income security system for non-workers, includes old age pensions, labor capacity loss pension(general work ability loss pension, accidental work ability loss pension, honored soldiers' work ability loss pension), and survivor pension(general survivor pension, war deads' survivor pension, victims' survivor pension). In particular, it was confirmed that the terminology for social security pension, which has been confusing in previous studies, is a collective jargon for all pensions under the national social security system. This study is significant in that it synthesized the historical transition process of the terminology of income security from the 10th Platform for the National Liberation Society in 1936 to the Socialist Constitution of the Democratic People's Republic of Korea in 2013.