National Pension Research Articles

소득분위별 노동소득의 연령 효과 추정

Interpretation of estimates based on OLS(Ordinary Least Squared) method includes the concept of an average. Therefore, if the income equation is estimated by OLS, the difference in income between individuals is caused by the difference in explanatory variables, and the age effect controlled the effects of other explanatory variables is the same regardless of individual characteristics such as education level, living region, birth year etc. However, in related to empirical studies, the age effect differs depending on the level of education or birth year, and the age when income peaks varies. This implies that the age effect differs depending on individual characteristics and this motivation leads me to analyze age effect based on the quantile regression. For this study, I use workplace-based insured men with income information during more than 21 years in the national pension history data during 1988-2020. From the comparison on the age effect by income level, first, the higher income class, the higher age premium. Second, the age when income peaks is higher as the income level increases. Specifically, income peaks at age 40 for the bottom 10% of the income bracket, however, income peaks at age 50 for the upper 10% of the income bracket.

The National Pensions Act, 2008 (Act 766) and Challeges of Pension Fund Administration in Ghana

The recent reformation in Ghana’s pensions space introduced the three-tier pension scheme underpinned by the National Pensions Act, 2008 (Act766) under the regulatory authority of the NPRA. Seeking to redress inherent challenges, the transformational shift effected by the former yielded the incorporation of private sector through inclusion of approved corporate trustees, fund managers, fund custodians and other service providers. However, despite the new scheme’s attenuation of key lapses and challenges of the previous regime, there still exist predicaments that are reflective of the later. By employing secondary and other forms of empirical data, this research explores significant shortfalls observed in the management of various schemes (DB and DC) intertwined with sections of the Act 766 that require reconsideration. The upshot of this research reveals the retarded performance of the Defined Benefit Scheme as opposed to the stupendous attainments of the Defined Contributory Scheme. Findings pertaining to inadequate coverage of schemes, perceived bureaucracy, payment of benefits, monthly remittances, and defaulted employers as well as exclusions from the three-tier pension scheme, suggest that extra work must be embarked on to make pension delivery effective and efficient. The paper therefore proposes rudimentary review of certain controversial provisions under the Act 766 coupled with strict adherence to various guidelines pertaining to the regulatory and administrative functions of stakeholders.

Prospection of the Factors Impacting the Sustainability of the Moroccan Pension Scheme

The objective of this study is to identify the factors impacting the sustainability of the Moroccan pension system. To this end, an adapted literature review and a study of the history and current diagnosis of the Moroccan pension system were conducted. Thus, variables appropriate to the factors identified in the literature review were selected to analyze their effects on the sustainability of the Moroccan pension system. This analysis revealed the impact of economic and demographic factors on the sustainability of the Moroccan pension system, and that over the last decade, the financial factor has also had a significant impact. Furthermore, between the 1990s and the 2000s, factors related to pension legislation and to management of the pension scheme had a significant impact on the sustainability of Moroccan pension plans. The article also discusses the efforts made by the Moroccan government to make the national pension system sustainable, some of which are in perfect harmony with the results obtained.
 Keywords: Sustainability, Pension scheme, Morocco, pension reform.
 JEF classification: H55, H75.

НАПРЯМИ МОДЕРНІЗАЦІЇ ДІЯЛЬНОСТІ НЕДЕРЖАВНИХ ПЕНСІЙНИХ ФОНДІВ В УКРАЇНІ ШЛЯХОМ ВПРОВАДЖЕННЯ ЗАРУБІЖНОГО ДОСВІДУ

The article examines the features of functioning of non-state pension funds in Ukraine and in the world. It was found that today the state of activity of the network of non-state pension funds in the state is an indicator of its stability, economic and social situation, the standard of living of the population, and its awareness of the range of possibilities of forming one's own pension resources. The functioning of pension systems in the leading developed countries and the formation of their pension provision are analyzed. In terms of reforming the social sphere, the world experience of non-state pension funds as the main subjects of the non-state pension system, performance indicators of the world's largest pension funds and the ratio of their assets to GDP were considered and analyzed. World experience proves that the development of non-state pension provision is an integral component of the country's successful development in market conditions, because funds invested in non-state pension funds will not only provide a stable income to pensioners in the future, but also work for the benefit of the national economy and enterprises, because they are returned to enterprises in the form of investment capital. The structure of the functioning of the national pension system is determined and the legislative framework is specified as the basis for the direct operation of non-state pension funds of Ukraine. The following indicators were analyzed: the total value of the assets of non-state pension funds and administrators of non-state pension funds acting on behalf of the pension fund and in the interests of its participants, the dynamics of pension contributions and pension payments, as well as the number of concluded pension contracts and the total number of contributors. The directions and ways of modernization of the main foundations of the domestic system of non-state pension provision in the context of adaptation of foreign experience are determined. It has been established that the implementation of world experience in Ukraine makes it possible to predict the effects of state decisions and to develop the most optimal way of modernizing the foundations of the activities of non-state pension funds and the pension system as a whole.

The Effect of Financial Literacy on Participation in the Informal Sector Personal Pension Scheme in Accra, Ghana

The informal sector contributes significantly to the Ghanaian economy. It contributes for more than 71.3 percent to employment creation and 70 percent to GDP in Ghana. However, the sector is the least covered in any form of pension. In addressing this, the government of Ghana introduced the Informal Sector Personal Pension Scheme in 2008 (Act 766), but after more a decade of its introduction, participation of the informal sector workers in the scheme is significantly low and the factors that will enhance increased participation have received little attention. This study sets out to assess the financial literacy of the informal sector workers and investigate whether financial literacy affects the participation of the informal sector workers in the personal pension scheme. This study used a descriptive survey design. Self- administered questionnaires were used to collect primary data of which 420 informal sector workers were sampled and used in the study. The Binary Logit Model was used to determine the probability of the informal sector workers to participate in the personal pension scheme given financial literacy. The study found that financial literacy among the informal sector workers is extremely low. It, was however, revealed that there is significant relationship between financial literacy and participation of the informal sector workers in the personal pension scheme. The policy implications proposed in the study were that the government, the National Pensions Regulatory Authority (NPRA), and Corporate Trustees should pay particular attention to financial literacy and provide financial literacy education and training for the informal sector workers.

10 important financial investments for orthopods in India

10 important financial investments for orthopods in India

일본의 확정급부형 연금리스크와 제도 리스크에 대한 고찰

For Japanese private companies, the pension system of employees can be divided into three categories. First, there is a national pension in which a certain amount of money is paid to all citizens aged 20 orolder, which is a public pension. Second, there is a welfare pension paid to the payer in proportion tothe salary while working at the workplace. Finally, there is a corporate pension that companies providefor their employees. The purpose of this study is as follows. First, it presents the risk of defined benefit type corporatepension corresponding to the corporate pension and the direction of institutional risk management. Second, it analyzes the direction of payment certificate system. Finally, in order for the corporatepension system to continue to develop appropriately as a system, it analyzes by dividing it into risk andrisk management. As a result of the study, for the ideal development of the pension system, it cannot be discussedwithout considering changes in the capital market of Japanese economy or changes in industrialstructure and population structure, and risk management of the pension system cannot be successfulunless it is done on these premises. It is certain that the payment certificate system contributes to thedevelopment of the pension system, but it is also true that there are limitations in the areas thatsupplement its contribution. In order for the Japanese economy to develop in the future, it should bedesirable that dynamic changes in the economy continue to occur.

Comparative standing of Kazakhstan pension system performance: learning policy lessons from Canadian experience

The study examines the current state of Kazakhstan public pension system in terms of its performance and asset structure as compared to that of the OECD countries as well as structural and regulatory issues confronting the national pension market as an impediment to ensuring adequate retirement savings of the population. The underlying issue to be addressed is current low real rate of return by the national pension fund, which translates into its future inability to provide for pension payouts that would meet retirement needs of the nation accounting for recent elevated inflation rates. As a likely solution, the paper investigates the Canadian pension system as a successful case of pension market ecosystem embodying a three-layer pension market structure that fuels diversified sources of pension payouts thus ensuring a sustainable flow of pension income to Canadian retirees. In particular, it advocates for introducing group (employer-based) and private (individual) registered pension programs of investments that have for long been adopted in developed countries demonstrating their effectiveness in generating substantial supplementary sources of pension income. As a prerequisite, favorable legislative and taxation frameworks should be adopted to secure motivation by both the employers and working citizens to contribute to the respective pension plans. By way of learning Canadian experience, suggestions as per prospective ways to reconfigure the Kazakhstan pension system are made that may solidify its overall performance and sustainability to ensure solid real rate of return and consequently adequate pension payouts to its future retirees.

국민연금 재정계산 시기별 언론보도 분석 — 경제뉴스의 보도 특징을 중심으로 —

이 연구는 국민연금제도의 지속가능성을 위해 사회경제적 상황을 반영해 5년마다 진행되는 국민연금 재정계산 시기별 언론보도를 분석했다. 국민연금은 재정계산 결과를 바탕으로 보험료 인상 등의 제도개선에 대한 논의를 진행하는 사회보험제도로 가입자가 600만 명, 기금이 900조가 넘는 국민 개인이나 국가적으로도 중요한 이슈다. 재정계산은 2003년 노무현 정부를 시작으로 5년마다 진행되어 이후 정권별 시기와도 일치하고 있어, 해당 시기별 언론보도 제목의 토픽분석을 통해 정권별 특징적 토픽과 전체 시기의 공통적 토픽을 도출하고, 당시 정부의 제도개선 방향과 언론보도가 이를 반영하고 있는지 확인했다. 또한 경제 저널리즘과 관련한 기존 연구를 검토하여 경제뉴스의 특징을 부정적 편향, 의제추종보도, 심층성 부족으로 구분하고 이를 기준으로 국민연금 언론보도에서 나타난 주요 특징이 무엇인지 확인해보았다. 연구 결과, 정권별로 특징적 부정토픽이 나타났다. 노무현 정부의 경우 ‘국민연금 8대 비밀 등의 제도 불신 사건(42.4%)’, 박근혜 정부는 ‘국민연금 수령액 연계 기초연금 도입(61.1%)’, 문재인 정부는 ‘의무가입 기간 상향 및 기금 손실(48%)’ 이 시기별 부정토픽으로 분석되었다. 공통적 토픽은 ‘보험료 및 수령액 조정’, ‘지급보장 등 제도개선 논의’, ‘국민연금 개정안(종합운영계획안) 제출’ 세 가지로 나타났다. 전체 토픽을 경제뉴스의 특징을 기준으로 분류한 결과, 의제추종보도(50.9%)가 가장 높은 비율을 차지했으며 부정적 편향(25.9%), 심층성 부족(23.1%)순으로 나났다. 이를 통해 언론이 먼저 제도개선과 관련된 이슈를 주도하고 의제를 설정하기보다는 정부나 국회의 발표를 사후적으로 보도하는 행태와 더불어 ‘불신, 고갈, 탈퇴, 반발, 손실’ 등의 부정적인 키워드를 제목을 통해 강조하는 부정적 편향 특징을 확인할 수 있었다. 노인 빈곤을 해결하고 미래세대의 보험료 부담을 낮추기 위해서 국민연금제도를 개혁해야 한다는 합의가 지난 대선 토론회에서 공론화될 만큼 국민연금 제도개혁은 중요한 이슈다. 이에, 2023년 5차 재정계산을 앞둔 시점에서 지난 20년간의 재정계산 시기별 언론보도를 분석해 주요 토픽과 언론보도 특징을 확인했다는 점에서 의의가 있다.

Target Date Funds: Current Status and Issues

Target date funds (TDFs) have their portfolios periodically adjusted according to the retirement dates of fund subscribers and are generally composed of several funds. TDFs attract attention in the recent pension market due to the increasing role of private pensions, the concern about the depletion and financial instability of the National Pension Fund, increased interest in stock and fund markets after COVID-19, and the introduction of the retirement pension default option. In particular, target date funds seeking globally diversified investment strategies could change the irrational investment behavior of pension assets that are still mainly invested with principal and interest-guaranteed products and consequent low returns. To this end, this study examines the current status and issues of TDF in the United States and Korea, and proposes ways to develop domestic TDF in the right direction.

OBJECTIVE AND SUBJECTIVE POVERTY AMONG OLDER PEOPLE AND ITS ASSOCIATION WITH HEALTH, FUNCTION, AND MORTALITY

Abstract We examined objective and subjective poverty between ages 70-95, comparing and contrasting frequency, associated subsequent medical, functional, psychosocial impairment, and mortality. Data collection by the Jerusalem Longitudinal Study, following a representative community dwelling sample (born 1920-1921), assessed at ages 70, 78, 85, 90, and 95. We defined "objective poverty" as sole income from "national old-age pension" necessitating "supplemental income benefit" from the National Institute for Social Security; "subjective poverty" as "financial difficulty getting through each month". Subjective and objective poverty differed: frequency of objective poverty remained 13% throughout follow-up period, while subjective poverty was more frequent at younger age, decreasing from 24% at ages 70-85, to 14% at ages 90-95. Subjective poverty was significantly associated with depression at all ages (from HR=3.2, CI 95%:1.73-5.93 at age 70, to HR=2.45, CI 95%:1.32-4.54 at age 95), and poor self-rated health (from HR=2.69, CI 95%:1.63-4.46 at age 70, to HR=1.96, CI 95%:1.11-3.43 at age 95), however no consistent associations with objective poverty was observed. Both objective and subjective poverty were associated with low levels of physical activity, impaired functional and cognitive status. Mortality was significantly increased among subjects with subjective poverty at ages 70, 85, and 90 (ranging from HR=1.33, CI 95%: 1.02-1.74 to HR=1.50, CI 95%:1.11-2.03), while objective poverty was significantly associated with increased mortality at ages 78 and 85 (HR=1.43, CI 95%:1.01-2.03, and HR=1.55, CI 95%:1.16-2.07 respectively). In conclusion, subjective and objective poverty differ in their association with health, functional and psychosocial status, and mortality between ages 70-95.

Development of capital pension funds in the Czech Republic and Bulgaria and readiness to implement PEPP

Unfavourable demographic trends are exerting more pressure on public pension systems in all European countries, and the need for alternative sources of pension provision is increasing. Personal pension products can be considered as a possible solution to the problem of providing adequate pensions. The pan-European personal pension product (PEPP) is the first standardised pension product subject to a uniform EU regime. Now that the regulatory framework for PEPP has been established at the EU level, it is up to the Member States to create an appropriate legal environment in order to promote the successful development of PEPP. This article examines the role of voluntary pension funds and the readiness to implement PEPP in the selected countries. We focus on the Czech Republic and Bulgaria, where the role of private pension funds is growing. We examine how PEPP can fit into the national pension systems and make some proposals regarding regulatory measures to be taken in order to ensure that PEPP is not at a competitive disadvantage against national pension products. We find that PEPP may fill the pension gap in countries where public pensions are the main source of retirement income and the role of occupational pension schemes is insignificant.

국민연금 추후납부제도의 중장기 발전방안 검토

본 연구는 국민연금 추후납부제도의 현황을 검토하고, 중장기 발전 방향을 모색하는데 목적을 두었다. 이를 위해, 국민연금 DB를 활용하여 추납 제도의 주요 현황을 살펴보았다. 분석결과, 추납제도는 2020년 법개정을 통해 인정기간을 10년 미만으로 제한했음에도, 신청건수 · 평균 추납기간 및 추납금액 등의 측면에서 지속해서 확대되고 있는 것으로 나타났다. 이러한 추납제도의 외연 확대는 적용 · 급여 측면의 사각지대 문제가 심각한 국민연금의 노후소득보장 기능을 보완해준다는 점에서 함의를 지닐 수 있다.BR 하지만 노후보장 강화라는 기치하에 추납제도가 지나치게 관대한 운영방식을 취해오면서, 여러 가지 부작용을 초래하고 있는 것도 사실이다. 실제로 현행 추납제도는 주로 고연령층과 고소득층이 은퇴 직전에 가입 이력을 벌충하는 용도로 이용하고 있는 것으로 나타났다. 이는 생애에 걸친 재분배를 지향하는 국민연금의 보험원리와 배치될 뿐만 아니라, 종국에는 가입자 간 형평성 문제나 노후소득의 불평등 문제로 이어질 수 있다.BR 따라서 추납제도가 국민연금의 정상적인 작동을 저해하지 않는 보충적 수단으로서의 본래적 기능을 수행하도록 일련의 보완조치가 마련될 필요가 있다. 이에 본고에서는 향후 국민연금의 성숙과 사각지대 문제의 완화를 전제로, 추납제도의 인정범위 축소 · 인정기간 및 신청기한 제한 · 보험료 산정기준 조정 등의 대안을 중장기 과제로 제안하였다. 이러한 조치를 통해 추납제도의 존립근거와 당위성이 보다 공고해진다면, 연금 취약계층의 노후소득을 벌충해주는 유용한 기제로 자리매김할 수 있을 것이다.

Manifesting the embedded developmental state: the role of South Korea’s National Pension Service in managing financial crisis

Financial liberalization has noticeably reduced the role of the state in effectively influencing the economy in post-developmental states. Yet many studies have found that the legacies of the developmental model continue to influence the policies, institutions, and socioeconomic challenges that are faced by the states that previously adopted the model. These studies, however, do not clearly identify when and how such legacies may be manifested in state behavior. This paper contributes to filling this gap in the literature by arguing that financial crises can serve as a trigger to more clearly reveal the structural evidence of the legacy in institutions that were previously established and utilized for developmental objectives. By conducting a rigorous case analysis using historical and market data on the crisis responses of South Korea’s public pension fund, this paper finds that South Korea’s developmental legacy remains passively embedded in the governance structure of the pension fund in non-crisis times but manifests during financial crises.

Information of employee decisions and stock returns in the Korean stock market

AbstractWe study the role of rank‐and‐file employees on asset prices in the Korean stock market using monthly labor flow data from the national pension subscription descriptions. We find that firms experiencing high net labor outflows have lower future risk‐adjusted returns. This return predictability is found to originate mainly from gross labor outflows. We further show that the workers' labor market decisions better reflect information on the firms' fundamentals when firm sales are greater related to wages or when workers can more easily transfer to better jobs. Finally, we confirm the workers' ability to predict firm performance.

Do policy expectations, health, and social support affect the quality of life of older adults?

ABSTRACT Korea’s population is aging and the quality of life (QOL) of older adults has become a significant social challenge. Research on the QOL of older adults has focused on health, social support, and objective institutional factors, without identifying the influence of subjective factors related to policy. This study includes policy expectations for national pension, long-term care insurance for older adults, and basic pension, in addition to health factors, such as cognitive function, depression, and activities of daily living (ADL), and social support from family members and friends. The results based on the 7th Korean Longitudinal Study of Aging (KLoSA) confirmed the significant relevance of relationships with friends (+) as social support along with cognitive function (+) and depression (-). Policy expectations for the national pension and long-term care insurance also had a positive relation with the QOL of older adults. These results have implications for future research and policies.

The pan-European Personal Pension Product: key characteristics and main challenges

Against the background of increasing challenges within the European Union related to ageing societies, a prevailing low interest environment, increasingly mobile life and work across the EU and the general distribution of wealth, several stakeholders within the EU have acknowledged the need to support the adequacy of national public pension schemes. This resulted in the conception of a Pan-European Personal Pension Product (PEPP), voluntary and portable across the European Economic Area (EEA), aiming at combining profitability, transparency as well as the security and quality of the related investments. Embedded into the greater scheme of the aspired European Capital Markets Union, PEPP is intended as simple and affordable savings option for everyone with the goal of closing the pension gap. This paper revisits the process towards the current, finalized state of PEPP, exploring its product features, regulatory requirements and key challenges with regard to the possible emergence of products since 2022.

The Effects of Shareholding of the National Pension Fund on Environmental, Social, Governance, and Financial Performance: Evidence from the Korean Manufacturing Industry

With the growing number of environmental, social, and governance (ESG) problems, many companies have begun to implement more sustainable business practices. In the midst of this change, institutional shareholders declare and adopt socially responsible investment procedures, which is a way of engaging in investor activism. Despite the growing interest in investor activism following the introduction of the stewardship code, little attention has been paid to how socially responsible investment practices of institutional investors affect the non-financial value of the pillars of environmental, social, and governance as well as financial performance, including short-term accounting (ROE, ROA) and long-term market performance (Tobin q). The current study examines whether the national pension fund (NPF), the world’s third-largest Korean pension fund, can increase the ESG performance of investee firms in addition to accounting and market performance through institutional investors’ shareholding. This study, by applying path analysis, attempts to explore the relationship between the NPF’s socially responsible investing, ESG, and the financial performance of the investee firms. This research offers evidence that ESG performance acts as a moderator or a mediator between NPF’s shareholding and financial performance.

Is it true that the benefit level of the National Pension is not low? : A comparison with other OECD member countries

본 연구의 목적은 국민연금의 급여 수준, 즉 소득대체율이 OECD 평균과 비교해 낮지 않다는 ‘국민연금 급여 과장론’에 대한 비판적 고찰을 하는 데 있다. 이를 위해 국민연금 급여 과장론의 주장을 하후상박 구조론과 지급률 사용론, 기초연금 누락론, 실질소득대체율 주목론 등 4가지로 구분하여 이에 대한 반론을 전개하고, 그 과정에서 국민연금 소득대체율에 대한 객관적인 평가를 수행하였다.BR 급여과장론의 주장을 검토한 결과는 다음과 같다. 첫째, OECD 회원국 중 12개국(한국 제외)이 공적연금 급여에 하후상박 구조를 가지고 있었으며, 저임금자의 소득대체율도 OECD 회원국에 비해 낮은 수준임을 확인하였다. 둘째, 지급률이 실제 급여 수준을 보여주지 못하는 한계를 가지고 있을 뿐만 아니라 국민연금의 지급률은 OECD 회원국에 비해 낮은 수준임을 확인하였다. 셋째, 기초연금을 반영한 소득대체율을 고려하더라도 공적연금 급여의 소득대체율은 OECD 회원국에 비해 낮았다. 마지막으로 국민연금의 보장성 강화를 위해서는 명목소득대체율 인상과 함께 실질소득대체율을 올리기 위한 다양한 정책이 추진될 필요가 있음을 강조하였다.

PERFORMANCE ANALYSIS OF SHARIA AND CONVENTIONAL BANKS WITH MAQASHID SHARIA: CASE STUDY OF INDONESIA AND MALAYSIA IN 2016-2020

This study examines the 2016-2020 performance of Islamic and conventional banks in Indonesia and Malaysia that were chosen using the Maqashid Sharia methodology. The data analysis technique employed the simple additive weighting method (SAW) in the weighing process, as well as an aggregation and sampling technique with purposive sampling and data sources from each bank’s annual report. Imam Abu Zahrah’s Maqashid Sharia approach as a measuring tool and by adding the Salah variable as a new-Sharia goal, in addition to Tahdzib al-Fard, Iqamah al-’All, and Jalb al-Maslahah are novel aspects of this research. The Maqashid Sharia approach is a novel method for measuring performance. Financial ratio approaches, such as return on asset (ROA), return on equity (ROE), etc., have dominated banks’ performance measurement methods. The study reveals the following Maqashid Syariah Index (IMS) rankings for Islamic and conventional banks in Indonesia and Malaysia: With a score of 0.281348, Bank Muamalat Malaysia Berhad occupies the first place. Bank Islam Malaysia Berhad was in second place with a score of 0.249451. Bank Negara Indonesia Syariah ranks third with a score of 0.213718. Hong Leong Bank Berhad ranked it fourth with a score of 0.192773. Maybank Islamic Berhad was ranked fifth with a score of 0.191428. RHB Bank Berhad was ranked sixth with a score of 0.190791. The Sharia National Pension Savings ranked seventh with a score of 0.165967. With a score of 0.156738, Bank Syariah Mandiri occupies the eighth position. The ninth position is held by Affin Islamic Bank Berhad, followed by Bank Rakyat Indonesia in tenth place with a score of 0.055160.