Lee: “Why require an application for the first-ever pension contribution? Why not provide it to those who don’t apply?”

[The Financial News] President Lee Jae-myung called for a review of how the “Youth First Pension Contribution Support Program” is run on the 20th, asking, “Why is an application necessary? Why not provide it if people don’t apply?”
After receiving a report from Health and Welfare Minister Jeong Eun-kyeong at the 45th Cabinet meeting held that day at Cheong Wa Dae’s main building, President Lee pointed out that making benefits depend on whether someone applies “causes substantive inequality.”
The program is a system under which the state covers the first month’s National Pension Service (NPS) contribution for people born in 2009, who will turn 18 next year. It establishes a contribution record and gives them the opportunity to pay contributions later, subject to future eligibility requirements, and extend their contribution period.
President Lee said, “Only people who are quick-witted, diligent and have time do it,” adding, “Because covering everyone would be too costly, this system is being designed and operated on the assumption that some people will give up or be unable to do it.” He went on to ask, “Is this fair? Is this really a moral state?”
Minister Jeong explained that the program was designed to require an application in order to ensure young people’s freedom of choice. In response, President Lee said it offered an opportunity to extend the contribution period, adding, “It seems young people’s opposition is based on a misunderstanding.”
President Lee proposed discussing ways to provide equal opportunities to people who meet certain criteria while taking the fiscal burden into account. Minister Jeong replied that the government was studying ways to reform the system for paying contributions later and would consider improvements with equity in mind.
[email protected] Seong Seok-woo Reporter