The Social Security Council, an advisory body for the health and welfare minister, has issued an interim report on reform of the nation's pension system, on the assumption that pensions, in principle, will be paid out of social insurance funds. The main pillars of the eight-point report are proposals aimed at helping low-income people.
The council members felt a sense of crisis over a decline in people's trust in the pension system, especially due to the pension-records fiasco. They thought, quite reasonably, that to restore trust, it was indispensable to strengthen supportive measures for low-income people and pensioners.
Their thinking is embodied in two proposals. The council calls for reducing pension premiums paid by low-income people and using public money to make up the shortfall. This proposal would enable low-income people to pay premiums in accordance with their income levels and in the end, receive the full basic pension.