The government’s proposed reform plan for the National Pension has sparked differing opinions between the ruling party and the opposition. With key issues such as adjusting the income replacement rate and premium rate, as well as introducing an automatic adjustment mechanism, the gap between the two sides seems difficult to bridge. The ruling party praises the plan as a reasonable compromise, while the opposition criticizes it for being more about reducing benefits than enhancing income security.
One major point of contention is the differential increase in premium rates based on age groups. The ruling party argues that the proposal takes into account historical adjustments and varying income levels across generations. Meanwhile, the opposition sees it as a departure from the principles of social security.
Another contentious issue is the introduction of an automatic adjustment mechanism, with the opposition viewing it as a pretext for cutting benefits. However, both sides support expanding the ‘credit’ system for women who have taken maternity leave and military service members to increase their pension entitlement.
Overall, the debate on the National Pension reform is expected to be a challenging process in the upcoming parliamentary discussions.
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