Citizen Pension, 700, 000 Omitted from Collection

The National Pension Corporation (NPC) mishandled the data from the Office of National Tax Administration (ONTA), omitting around 700, 000 income earning district subscribers from insurance payment. This negligence in subscriber management is making the finances of the NPC worse.

On August 30, member of the National Assembly`s Health and Welfare Committee, Shim Jae-chul of the Grand National Party announced the findings of the inspector`s analysis over a one month period since the beginning of August of combined income report documents and the present situation of National Pension members. The inspector confirmed that up to 700, 471 persons who had filed income tax reports to the ONTA claimed that they had no earnings in the NPC and applied for payment exemptions.

Furthermore, 363, 602 persons filed a lower income earnings than the amount they filed with the ONTA, while 501, 161 persons did not file their income tax report or pension memberships at all. The insurance payment from the 750, 000 who falsified or failed to file their income reports would have been 3600 million won (average income earnings with middle-income level 22 insurance payment of 40, 000 won).

Currently, the amount not paid for pension and insurance costs over 1 billion and 2000 million won while 859, 000 have not paid for insurance after at least six months of subscribing for pensions and 649, 000 have paid only in part, with a total of 1, 508, 000 delinquent payers (7500 million won in nonpayment). The inspector reported that despite the seriousness of the situation, the NPC repeatedly sent out ineffective final notices, losing an estimated 29 million won per year.

Sun Dae-In eodls@donga.com