Government Employees Pension Service

Government Employees Pension System

History

The Government Employees Pension Act, Korea's first public pension system, was enacted in 1960, and the Military Pension Act, Private School Pension Act and the National Pension Act were implemented in 1963, 1972 and 1988, respectively. Commencing with the first reformation of the Government Employees Pension Act in 1995, a total of 4 pension reforms have since been achieved.

1st Reform of the Government Employees Pension Act (1995)

Increased the rate of contributions, enhanced the restriction of benefits, and established the state pension age, etc.

2nd Reform of the Government Employees Pension Act (2000)

Introduced a system for which the government makes up any pension deficits (Compensatory grants), etc.

3rd Reform of the Government Employees Pension Act (2009)

Increased the rate of contributions, adjusted the pension calculation method, and raised the state pension age, etc.

4th Reform of the Government Employees Pension Act (2015)

Increased the rate of contributions, extended the maximum service period for pension calculations, and reduced the rate of pension benefits across phases, etc.

Overview

The Government Employees Pension System is a legislation which guarantees social protection for government employees and their surviving spouses by providing comprehensive benefits such as retirement pensions, survivors and disability pensions or other lump-sum payments.

Eligibility

A government employee under the State Public Officials Act, the Local Public Officials Act or other Acts
Other persons prescribed by Presidential Decree among the employees working in government agencies or local governments
* Persons excluded : Military personnel and public officials inaugurated by election.

Financial Management

Government employees’ pension benefits are disbursed from the funds that consist of the employee contributions paid by government employees, employer contributions borne by the state and local governments, and any profits taken from the fund management.

If such a case arises where the yearly income cannot cover the expenses for the year, then the shortage shall be covered additionally by the state and local governments to ensure the stable disbursement of the planned benefits.

Moreover, in order to fulfill its role as the government employees’ pension fund, since 2015, part of the profits from the fund investment have been diverted into the pension fund.

Profits

1) Employee Contribution (government employees)

2) Employer Contributions (State, local government)

3) Compensatory grants, etc.

Expenditures

1) Retirement benefits (pension, lump-sum)

2) Retirement allowances, etc.

※ What constitutes "Employee Contributions" and "Employer Contributions"?

Various benefits under the Government Employees Pension Act are funded by the "employee contributions" deducted at a fixed ratio of the standard monthly incomes of government employees and the "employer contributions" borne by the state or local government at a fixed ratio of the remuneration budget.

- Current percentage of "Employee Contributions" and "Employer Contributions"

Service Deails
Employee Contributions	Employer Contributions
9% of the standard monthly income	9% of the remuneration budget

Types of Benefits