Politics · South Korea · 1 hr ago

South Korea court upholds phased delay in civil servants’ pension age

South Korea court upholds phased delay in civil servants’ pension age

South Korea’s Constitutional Court upheld the law delaying some civil servants’ pensions until later in life.

The case was brought by the National Government Employees’ Union, which argued the change harms workers’ pension rights.

A 2009 reform raised the pension age from 60 to 65, and a 2015 rule set a gradual schedule for some workers hired from 1996 to 2009.

Depending on when they retire, they may have to wait until ages 62 to 65, even though the retirement age is 60.

The court was split, with four judges supporting the law and four opposing it, but six votes are needed to strike down a law.

The ruling means the pension-age schedule stays in place because the court said earlier changes made a later starting age foreseeable and pension funds need protection.

Workers can claim an early pension, but payments may be reduced by up to 25% when they start five years early.

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What people are saying

Constitutional Court majorityCourt majority
The damage to the claimants’ trust is not great, but promoting the stability of pension finances and rationalising the pension system in line with its basic principles are urgent and important public interests.
via Maeil Business
Dissenting justicesConstitutional Court justices
The provisions disregard the claimants’ reliance interests and unilaterally invoke the importance of the public interest of pension-finance stability.
via Maeil Business
It is no different from cutting the claimants’ pensions by up to 25%, and the disadvantage to them is excessively great.
via Maeil Business