The national pension benefit to be increased by 4.0% from Apr
- Regdate2012-03-16 16:06
- Hit6,632
The national pension benefit to be increased by 4.0% from Apr.
- The basic old-age pension benefit and the pension benefit for the disabled will also increase by 3,400 won to 94,600 won -
-The standard monthly income amount for the national pension will be adjusted; the minimum amount at 240 thousand won and the upper limit at 3.89 million won from July.
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Changes from the previous year |
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Ministry of Health and Welfare (Minister Rim, Chae Min) notified that the national pension benefit will increase by 4.0% from April 2012 and the lower limit and the upper limit of the standard monthly income amount, which is the basis for calculation of the national pension insurance premium will be adjusted to 240 thousand and 3.89 million won, respectively, starting from July.
Also, along with the rise of the average income of the National Pension subscribers, the monthly benefit amount for the Basic Old-age Pension and the Pension for the Disabled will increase by 3,400 won each from Apr. 2012.
The National Pension adjusts the lower and upper limits of the standard monthly income amount, which serves as the basis for calculation of the benefit amount and the insurance premium, taking into account of price and income growth every year in order to prevent the decline of the actual value of the national pension and to guarantee a proper level of the benefit.
The increase of the national pension benefit this time has reflected 4.0%, the nationwide consumer price fluctuation rate from last year.
The basic pension amount for the national pension beneficiaries will rise from 1 thousand won to 54,000 won according to one’s existing pension amount and the pension for the dependent will rise to 236,360 won for spouse and to 157,540 won for children and parents based upon the annual pension amount.
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▣ Mr. Gho, who started receiving the pension benefit from 1995 after retirement, has been receiving it for 16 years.
▪ The pension amount, which was 214,440 won a month back then (95’) when he started receiving the benefit, has gone up every year according to price changes and he received 400,440 won per month in 2011 and will receive 416,450 won with 4.0% (16,010 won) incorporated into it. |
○ Also, the actual value of the pension for those who begin to receive the national pension from 2012 is secured as the pension amount is calculated by reevaluating (converting) the past income into the current value with the incorporation of the rise of the average income among all the pension holders.
* See the attachment for details such as the “reevaluation rate” applied for 2012.
□ Along with this, the basic old-age pension benefit and the basic benefit of the pension for the disabled will be increased by 3,400 won each from Apr.
* The standard for the basic old-age pension and the pension for the disabled (basic benefit): 5% of the value A
* thevalue A : the three-year average of the average monthly income amounts of the national pension subscribers
- 5% of the average income of the national pension subscribers is given as the basic benefits of the basic old-age pension and the pension for the disabled and the average income among the national pension holders of last year (the value A) went up to 1.89 million won from 1.82 million won.
- The benefits of the old-age pension and the pension for the disabled for the sole recipient will increase to 94,600 won from 912,000 won and, for the married couple recipient, from 145,900 won to 151,400 won.
* Pension for the disabled = basic benefit (94,600 won) + additional allowance (basic benefit of 60 thousand won and 50 thousand for the second highest class)
□ The lower limit of the standard monthly income amount, which is the basis of calculation of the national pension amount and insurance premium will be changed from 230 thousand won to 240 thousand won and the upper limit will be adjusted to 3.89 million won from 3.75 million won (Jul. 2012~ Jun. 2013).
○ The insurance premium that the pension holders have to pay will be increased by 801 won at maximum if their monthly incomes are less than 240 thousand won and by 12,600 won at maximum if their incomes per month exceed 3.75 million won. The pension benefit that they will receive in their post retirement will also increase.
* Increased portion of the insurance premium related to the monthly incomes
- 90~810 won for those whose monthly incomes are below 240 thousand won and 90~12,600 won for those whose monthly incomes exceed 3.75 million won
-For those whose monthly incomes are between 240 thousand won and 3.75 million won, the standard monthly income amount and the insurance premium will not be changed.
□ For more information, call the Ministry of Health and Welfare at 129 or visit its website (www.mw.go.kr) and call the National Pension Service at 1355 or visit its website (www.nps.or.kr).
[ENG][3.12]The national pension benefit to be increased by 4.0%.docx