Pension reform plan to benefit military, mothers

(Getty Image)

South Korea's pension reform plan will include a proposal to increase benefits for those who served in the military and women who give birth.

Aiming to ease the pension burden on young adults, as most military service members and women who give birth are in their 20s and 30s, the presidential office and the government have ramped up measures to credit those who contribute to the community.

The government also has decided to apply the “maternity credit,” which is granted from the birth of a second child to the birth of a first child.

The maternity credit adds years to a woman's pension enrollment period. If a woman gives birth to a second child after Jan. 1, 2008, she can add 12 months to her pension enrollment period, and from the third child, she can add 18 months per child, up to a maximum of 50 months.

The reform plan will add 12 months to the contribution period for the first child and remove the upper limit of 50 years.

The "military service credit" for those who have served in the military will also be expanded. Currently, recognizing only up to six months of military service as a pension contribution period, the new plan will recognize the entire period of military service as a pension contribution period.

These reform specifics will be announced at President Yoon Suk Yeol's national briefing, which is expected to take place later this month or early next month.

By Choi Jeong-yoon(jychoi@heraldcorp.com)