President Park Geun-hye called Tuesday for the swift passage of a bill to overhaul civil service pensions, warning that the issue could become a ticking “time bomb” unless addressed.
South Korea has faced the looming crisis as previous governments delayed addressing the issue of pensions for civil servants, despite being aware for decades that the current pension plan is not sustainable.
The case for pension reform for public servants has gained urgency as the increasing average life expectancy for Koreans could further deepen the pension deficit.
Park said any delay in reforming civil service pensions could worsen the public’s burden, noting that politicians should never leave behind a legacy of debt for future generations.
Park said the pension “time bomb could explode” unless the political community and the government address the issue.
She has warned that by next year the government will be forced to use 10 billion won ($9 million) of taxpayer money every day to fund the civil service pensions unless the parliament passes a reform bill by early May. (Yonhap)
