"I paid in 8.83 million won and received 111.9 million won."
Nearly 20,000 National Pension Service recipients have collected more than 100 million won in benefits despite paying less than 10 million won in contributions over their working lives.
Data submitted by the National Pension Service to Rep. Choi Bo-yoon of the People Power Party, a member of the National Assembly's Health and Welfare Committee, showed on the 13th that 19,972 people had paid 10 million won or less in contributions while receiving cumulative benefits exceeding 100 million won.
Those recipients paid an average of 8.33 million won in contributions during their enrollment periods. Over an average of 260 months, or about 21 years and eight months, they drew an average of 111.9 million won in benefits per person — more than 13 times what they paid.
The gap stems from the benefit structure in the program's early years. When the National Pension program was introduced in 1988, the contribution rate was just 3% while the income replacement rate stood at 70%. Enrollees now need at least 10 years of contributions to qualify for benefits, but through 1999 a special old-age pension granted entitlement after only five years.
At least 3,260,147 people have received more than they paid in contributions.
Among the 758,893 people who paid 10 million won or less, 202,486, or 26.7%, have collected more than 50 million won. In the bracket of those who paid more than 10 million won but no more than 20 million won, 1,294,563 people received more in benefits than they contributed, and 329 of them collected more than 200 million won.
While early enrollees continue to enjoy high returns on their contributions, the pension system's long-term finances remain a challenge. Under the current system, the National Pension program's finances are projected to swing to a deficit in 2050, with the fund expected to be depleted in 2069.
"We need to closely examine the benefit structure and the financial situation so that the National Pension program can fulfill its original role of guaranteeing retirement income while operating as a sustainable system over the long term," Choi said. "We must prepare reasonable reform measures for the pension system that respond to rapid demographic change and take into account the burden on future generations."