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지나쌤

1 in 10 basic pension recipients not paid fully

By Yonhap

Published : May 24, 2018 - 09:54

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Nearly 1 in 10 recipients of South Korea's basic pension program don't get full monthly payments due to a scheme meant to prevent income inequality among pensioners, government data showed Thursday.

South Koreans who are aged 65 and older and belong to the bottom 70 percent of the income bracket are eligible for the basic pension that amounts to a maximum 200,000 won ($185) per month.

According to the data from the Ministry of Health and Welfare, about 91 percent of 4.94 million basic pensioners received the full monthly payment as of the end of February, but the remaining 9 percent had a portion of their monthly payments cut back due to the so-called reduction scheme.

(Yonhap) (Yonhap)

The scheme is designed to head off a possible income gap between pensioners and those who are ineligible, which could arise from the basic pension program.

Currently, those who have subscribed to the national pension system for 11 years or less are eligible for a full monthly payment of 200,000 won, but payments decrease as their subscription period becomes longer, according to the ministry.

Those who have subscribed to the state pension plan for 20 years are eligible to receive a monthly basic pension payment of only 100,000 won.

South Korea introduced the basic pension program in 2014 to help those who are most vulnerable to poverty. The amount of basic pension is adjusted annually for inflation and the income level of subscribers to the national pension system.

The government has revised regulations this year to ensure that 70 percent of people aged 65 and older become eligible for the basic pension. Seniors who live alone and have a monthly income of less than 1.31 million won, as well as senior couples with an income of less than 2.09 million won, are eligible to apply. (Yonhap)

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