Lee Jae-myung: "Abandoning First-Time Youth National Pension Support Policy, But Recommending Early Enrollment"

[Suwon Ilbo=Park No-hun Reporter] Gyeonggi Province Governor Lee Jae-myung has abandoned the 'First-Time Youth National Pension Support Policy' that he had pledged during his gubernatorial election campaign and revealed his thoughts on the matter.

Governor Lee announced through his SNS on the 25th, "Gyeonggi Province is abandoning the first-time youth national pension support project it was pursuing due to opposition from the Ministry of Health and Welfare, and instead will review enrollment promotion policies such as providing incentives to enrolled young people."

The governor stated, "I once heard from a National Pension Service labor union member that 'although the contribution amount is the same in the national pension, benefits are proportional to the enrollment period. Extending enrollment periods through retroactive contributions is possible for everyone up to age 27, but retroactive enrollment before that (up to age 18) requires at least one payment record. Few people know about this extremely beneficial system, so only a very small number of people—such as pension service employees or public officials—use it,'" explaining the background of why he had made this policy a campaign promise for Gyeonggi Province's youth.

He continued, "In policy implementation, under the pretext that 'financial problems would arise if many beneficiaries use it,' instead of promoting it, authorities keep it quiet and allow only a small minority to know and use it, worry constantly about whether users will increase, and even criticize and oppose local government policies that say 'we will support so that many policy beneficiaries can use this' as 'fiscal damage populism'—this is unacceptable." However, he added, "Nevertheless, it is certainly unfair and unjust that only a very small portion uses the national pension, which is a resource for all by all, while the majority suffers losses."

Finally, the governor stated, "I recommend to residents of Gyeonggi Province early enrollment in the national pension for your children, relatives, and neighbors (you only need to make one payment)," and "At the same time, I request that authorities pursue a rational policy in which all citizens receive retroactive benefits fairly, even if it means reducing the retroactive contribution allowance period."

The following is the full text of Governor Lee Jae-myung's SNS post.

<Abandoning First-Time Youth National Pension Support...In a Fair Society, National Pension Retroactive Contributions Must Also Be Equitable>
Gyeonggi Province is abandoning the first-time youth national pension support project it was pursuing due to opposition from the Ministry of Health and Welfare, and instead will review enrollment promotion policies such as providing incentives to enrolled young people.
I once heard from a National Pension Service labor union member that 'although the contribution amount is the same in the national pension, benefits are proportional to the enrollment period. Extending enrollment periods through retroactive contributions is possible for everyone up to age 27, but retroactive enrollment before that (up to age 18) requires at least one payment record. Few people know about this extremely beneficial system, so only a very small number of people—such as pension service employees or public officials—use it.'
Even without occupation or income, if young people make just a few tens of thousands of won in contributions starting at age 18, they have the opportunity to receive pension benefits in retroactive contributions worth several times the contribution amount when they eventually have sufficient income—but only those very few young people who know about and have the means to use this system benefit.
For this reason, during the 2016 presidential primary, I proposed the First-Time Youth National Pension Support Policy to support the first contribution for all Korean youth at age 18, and in this Gyeonggi Province gubernatorial election, I made this pledge for Gyeonggi Province's youth.
Government policies funded by taxpayer money, not charity, must be known to all beneficiaries, must be accessible to all, and must be designed so that all beneficiaries can use them without problems.
In policy implementation, under the pretext that 'financial problems would arise if many beneficiaries use it,' instead of promoting it, authorities keep it quiet and allow only a small minority to know and use it, worry constantly about whether users will increase, and even criticize and oppose local government policies that say 'we will support so that many policy beneficiaries can use this' as 'fiscal damage populism'—this is unacceptable.
If a policy creates financial problems when many beneficiaries use it, then either it should not be created or it should be abolished or modified—it should not allow only a small minority to use it 'within a range that does not create financial problems.'
It is difficult to readily agree with the argument made by the Ministry of Health and Welfare, which created the '18 years and above retroactive contribution allowance policy' for youth nationwide, that 'we cannot allow only Gyeonggi Province youth to benefit. Gyeonggi Province's first-time contribution support policy would damage the national pension finances,' but
as a member of the Moon Jae-in administration and the Democratic Party government, in a position where I must work with team spirit transcending minor differences for the success of the administration and government, I cannot push ahead with local autonomy the way the previous administration opposed the three major free welfare policies.
However, it is certainly unfair and unjust that only a very small portion uses the national pension, which is a resource for all by all, while the majority suffers losses.
While I recommend to residents of Gyeonggi Province early enrollment in the national pension for your children, relatives, and neighbors (you only need to make one payment),
I simultaneously request that authorities pursue a rational policy in which all citizens receive retroactive benefits fairly, even if it means reducing the retroactive contribution allowance period.