Endnotes

¹When a pensioner has the rights to two or more benefits, only one benefit is allowed at his/her choice. However, in case of a survivor pension, the amendment allowed a fixed amount to be added to the amount of the chosen pension.

²This study focuses on the assessment and analysis of financial stabilization measures among various reform measures for the National Pension Act. For more information about the assessment results of the improvement measures for the working elderly, including the introduction of Deferred Pension System and Early Old Age Pension System, refer to Moon and Lee (2007).

³For more specific information on the actuarial evaluation process of the National Pension Scheme, refer to Moon and Shim (2005).

⁴Due to the difference in assumed values, the actuarial projection result for the National Pension Scheme presented in this study could be different from that of existing studies or the National Pension Service’s statistics.

⁵Reserve ratio is defined as the ratio of fund reserve to the annual expenditure.

⁶Refer to Moon (2005) for the critical assessment focusing on problems and limitations of the 2003 revised bill of the National Pension Act.

⁷For more in-depth information about the analysis procedures, refer to Moon and Lee (2007).

⁸In this simulation, the income level of average workers is a little above twice the level of Value A. Therefore, in terms of income level, the middle-income subscribers of the National Pension Scheme are similar to those who earn half the level of average workers’ income.

⁹Refer to Kim (2007) for the review on the specific measures to introduce automatic balance mechanism.

¹⁰For more discussion about the impact of the National Pension Scheme on the financial market, its asset allocation structure, fund management system, and execution of shareholders’ rights, see Moon (ed.) (2007).

¹¹As of September 2007, only 4.58% of the companies targeted by the retirement pension scheme have actually subscribed to the scheme. Also, it is pointed out that the personal pension system is not living up to its role because of a recent drop in household subscription rate (Ryu 2007).

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