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A Historical Study on the Basic Pension to Prepare for the Pink Society - Focusing on the basic pension plans developing in Japan and Germany -

  • Legal Theory & Practice Review
  • Abbr : LTPR
  • 2019, 7(2), pp.9-35
  • Publisher : The Korea Society for Legal Theory and Practice Inc.
  • Research Area : Social Science > Law
  • Published : May 30, 2019

Jongho Kim 1

1호서대학교

Candidate

ABSTRACT

The debate over the basic pension system came earlier than the birth of the public pension system itself. The debate is continuing to the present time that it is repeated in the reform of the pension system. The German case is typical. However, the basic pension does not go along with social insurance schemes or taxation schemes - this alternative is not just a matter of financing. It is a question about the ideology of social security, and also about the purpose and direction of basic pension. The basic pension of the full taxation system is often a problem with the relationship with public assistance. The problem of how to distinguish between the two, the amount of pension benefit and the level of standard of living is also being actively discussed in Korea as in Germany. The ideology or purpose of social aid is in the state of poverty, and social insurance is based on the idea of ​​social solidarity. Financial support also divided into two, social aid based upon tax and social insurance relied upon premium. There is also a difference in whether or not the money is spend, although the social aid contributes self-financing, but the social insurance takes place jointly. In addition, the range of beneficiaries is very different from that of social insurance, which is narrowly limited to low-income individuals in the case of social aid, and covers insured persons as a broad target. The level of benefits is also the minimum level of social aid, and social insurance is the optimal level based on a balance of needs and premiums. Moreover, social assistance and social insurance have big differences in economic effects such as life stabilization effect, income redistribution effect, employment creation effect and consumption expansion effect. The basic pension should be covered by the full amount of tax. The basic pension should be covered by the full amount of tax. That is, the de-insurance is the social disadvantage approach of the public pension. If one represent public assistance for herself livelihood protection, the national pension is a social insurance representative based on social solidarity to meet the purpose of the National Pension Act. It is one of the implications of the transformation of the joint solidarity system, which is the basic pillar of social security in Korea. The discussion in this paper which examines these differences in detail will provide a basis for future reforms of the Korean pension system.

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