The Ministry of Health and Welfare announced today (June 16) that the revised National Pension Act, which improves the old-age pension reduction system, will go into effect.
Since the introduction of the national pension system in 1988, benefits have been reduced for recipients with income above a certain level to balance adequate retirement income with the sustainability of the pension fund.
Currently, if a recipient's income exceeds the average monthly income of all national pension subscribers over the past three years (the "A-value"), their old-age pension is reduced by up to 150,000 won. Moving forward, however, the reduction will only be applied to those whose income exceeds the "A-value plus 2 million won."
The average monthly income of subscribers over the past three years (the A-value) for this year is 3,193,511 won. Starting tomorrow, the threshold will be raised by 2 million won to 5,193,511 won.
(Photo: Yonhap News)
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