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From: Subject: Korea Times Search Date: Mon, 12 Feb 2007 11:26:19 +0700 MIME-Version: 1.0 Content-Type: multipart/related; type="text/html"; boundary="----=_NextPart_000_0000_01C74E98.9E3AD600" X-MimeOLE: Produced By Microsoft MimeOLE V6.00.2900.2180 This is a multi-part message in MIME format. ------=_NextPart_000_0000_01C74E98.9E3AD600 Content-Type: text/html; charset="ks_c_5601-1987" Content-Transfer-Encoding: quoted-printable Content-Location: http://search.hankooki.com/times/times_view.php?term=pension++&path=hankooki3/times/lpage/nation/200701/kt2007012619530611990.htm&media=kt Korea Times Search

Hankooki.com > Korea=20 Times > Search

Debate on Pension for=20 Public Servants Begins

By=20 Kim Tong-hyung
Staff Reporter=20

The government and representatives of public = workers=A1=AF=20 unions on Friday began their negotiations over = reforming=20 the state pension for = civil=20 servants.=20

The Ministry of Government Administration and = Home=20 Affairs earlier this month reported a draft plan = for=20 changes to the civil servants=A1=AF pension to President Roh = Moo-hyun.=20

The suggestions focused on cutting retirement = payments and raising contribution rates because = of=20 increasing concerns about shrinking pension fund assets.

Home Affairs Minister Park Myung-jae met with = Park=20 Song-chul, the chairman of the Federation of = Government=20 Employees, and representatives of two of the=20 federation=A1=AFs member unions, at the = ministry=A1=AFs=20 headquarters in Seoul.=20

It was the first time that the home affairs = minister=20 met with union leaders since civil = servants=A1=AF unions were=20 legalized last year.=20

``We will negotiate with the unions under the = boundaries within the law and discuss what would = be the=20 best for both sides. The ministry stands firm = that it=20 would not talk with civil servants unions that = are not=20 authorized by the government,=A1=AF=A1=AF said = Home Affairs=20 Minister Park Myung-jae.=20

The country=A1=AFs largest civil servants = union, the=20 Korean Government Employees' Union (KGEU), which = has=20 more than 14,000 members, was outlawed by the = government=20 last year after it decided to join the Korean=20 Confederation of Trade Unions (KCTU), one of = Korea's two=20 labor umbrella groups.

With Friday=A1=AFs meeting marking the start, = the=20 government will hold talks with the = representatives of=20 the 39 public workers' unions to finalize the = new pension system.=20

Under the current model, public workers are = required=20 to contribute 5.5 percent of their monthly wages = to the=20 pension fund, while = receiving=20 after retirement about 70 percent of their = average wage=20 during their last three years at work.=20

In comparison, the National Pension Fund requires a = contribution of=20 9 percent, with the retirement payouts ranging = from 30=20 percent to 60 percent of the average wage.=20

Under the new plan, the retirement payouts of = public=20 workers could be around 51 percent of their = average wage=20 during their entire period of employment, with = their=20 contribution rate rising to 8.5 percent of their = monthly=20 salary by 2018.=20

Critics have been pointing out that the = country's=20 generous public workers' pensions, which provide = better pay and=20 benefits compared to the National Pension Fund for ordinary = citizens,=20 could put a serious financial burden on future=20 taxpayers.=20

The country sustained a 609.6 billion won = deficit in=20 the Government Employee Pension=20 Fund in 2005. The deficit is expected to grow to = about=20 1.4 trillion won this year, 3.3 trillion won in = 2011 and=20 13.8 trillion won in 2020, according to = government=20 estimates.

mailto:%20thkim@koreatimes.co.k= r=20

01-26-2007 = 19:53

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