The Government Employees Pension System (GEPS) was introduced in
1960 as the first public pension provision in Korea. The GEPS, which is operated separately from private pensions, provides various benefit programs such as loans, housing support and resort facilities for active civil servants as well as old-age, survivors and disability pensions for retirees.
As a result, the system has significantly contributed to enabling government employees to serve the nation and people while in service or after retirement without worrying about old-age income. However, in anticipation of the number of pensioners growing as the aging population
increases, pension reforms have been carried out several times since the mid-1990s to mitigate future financial burden.
These changes have made it possible to achieve a lot of improvements regarding equity with the national pension for the general public as well as long-term financial stabilization.
The Government Employees Pension Service (GEP Service) is a para-governmental entity established in 1982 to manage the GEPS effectively. The GEP Service has taken over the comprehensive management of the GEPS including pension operation, disability compensation, fund management and other support services. The number of pension recipients which was 2,059 when the system was founded increased to 450,000 people. Over this time, pension funds increased from 549 billion won to 10 trillion won. To cope with the increasing workload and recipients’ expectation for better services, the GEP Service has proactively pushed for intensive, management innovation with the vision of driving ‘Three Years of Creative Change towards Thirty Years of Stability’
The Government Employees Pension Fund (GEPF) was founded to operate the pension finance stably. Currently, it has a minimum reserve based on a pay-as-you-go plan. Nevertheless, the GEPF makes its best effort to achieve high profits over stability. The Fund has established the foundation for solid investment and mid & long-term profit creation through organizing asset management systems and strengthening expertise which could enhance the rate of return of fund management. The GEPF also created a guideline for several investment products, introduced a Performance Evaluation Committee and brought in specialists in finance and risk management. I expect a stable and high rate of return of fund management can be realized through systematic reorganization.
The pressure to reduce the financial burden on public pension is a global phenomenon. Countries around the world face significant socioeconomic issues such as population aging, low-interest rates and weakening economic growth. Korea is not exempt to these challenges. The GEPS will, therefore, strive towards greater efficiency in managing the system to guarantee social protection for present & future government employees. Thank you.
Chairman & CEO