The objective of this study is to provide the requisite political information to minimize problems resulting from the expansion of the application of the national pension to include farmers and fishermen, and to introduce systems necessary for their inclusion.
Four years have passed since the National Pension was expanded to include the general public. Before, the pension plan was limited to only certain occupations. The three main tasks that the current National Pension must undertake are: expansion of National Plan system to include all citizens, establishment of connections with other public pension and social insurance systems, and efficient management of funds accumulated for the long-term stabilization of pension finances.
Under the National Pension plan, only employees of businesses with 10 or more employees are obligated to join. Other individuals are considered voluntary members. Therefore, technically, the National Pension covers all citizens. However, considering that one of the major differences between the public and private pension system is the obligation to join, an actual National Pension will only be achieved when the voluntary group – workers of businesses with 5-9 employees, farmers, fishermen, and business owners – join the system.
Presently, obligatory membership is planned to include the employees of businesses with 5-9 employees (after 1992), and farmers and fishermen during the period of the Seventh Economic and Social Development plan. Although it would be relatively simple to apply this system to employees of businesses with 5-9 employees (since their income is wage-based), there are many problems that must be addressed before expanding the scope of the pension plan to farmers and fishermen. The plan for the farmers and fishermen requires special considerations, as the employment type and income of farmers and fishermen are different from the business workers, and, currently, are enduring a restructuring period, a result of the opening of agricultural and fisheries markets. Therefore, their induction into the pension system requires close study and advance review.
The percentage of elderly (older than 60) in Korean farm village populations increased from 10.5 percent in 1980 to 18.2 percent in 1989, significantly higher than the national average at that time. Additionally, the percentage of elderly population in Korean fishing villages is also relatively high (11 percent) and expected to rise.
In France, in 1962, a pension system was implemented with the objective of encouraging movement to farming villages. At the time, the gross income per capita was estimated to be USD 7,127 (adjusted for inflation for 1990). In Germany, the system was introduced to enhance management systems for the elderly in farm villages in 1957. Their income was estimated at USD 4,848 (adjusted for inflation for 1990). In Japan, the system was introduced to encourage movement to farm villages and economic improvement in 1970. The gross income per capita was USD 6,100 (adjusted for inflation for 1990).
Introducing the pension plan for farmers and fishermen as an agricultural policy has been evaluated to contribute towards improving agricultural structure. That is, management area per unit will be expanded, the age of management will be reduced, and concurrently, the agricultural worker population will be reduced. The agricultural productivity and income will be enhanced. However, the expansion of industry results in supply overhead, and in most countries, the agricultural restructuring policy is repeated.
The main issues for the induction of farmers and fishermen to the pension system are as follows: The individuals under consideration are persons in the 18 to 60 age group that manage or are employed in agricultural or fishery businesses. In principle, all business owners in the 18 to 60 age group are obligated to join the pension system as members, and persons with other income sources, or persons wish to join voluntarily, are included. Contributions to the national treasury fund are to be collected. The contribution consists of the amount paid by the pension members, which consists of a fixed fee and an income-relative fee. The type of payment is identical to the range of payment of National Pension. However, since the contribution of farmers and fishermen is two thirds the level of business workers, the complete elderly pension, reduced elder pension (fixed amount), early retirement pension (fixed amount), special elderly pension (fixed amount), disabilities and damage pension (fixed amount), and lump-sum return are also eligible for adjustment.
The National Pension Service, the administrative body, conducts the following services: management and maintenance of member records, decisions and payment, installation and operation of welfare facilities for pension beneficiaries, and welfare improvement projects.
농어민연금제도의 도입방안(Plans for introducing pension system for farmers and fishermen)
|Series Title; No||정책연구시리즈 / 91-35|
|Subject Country||South Korea(Asia and Pacific)|
|Subject||Industry and Technology < Agriculture|
|Holding||KDI: KDI SChool|