“We really can’t get the national pension”… Profitability is negative again due to the departure of a large number of experts

[사진 = 매경 DB]

While discussions on pension reform are in full swing in the political arena, it has been found that the public thinks that reforms that increase the return on fund management are needed rather than discussing the insurance premium rate and income replacement rate.

According to a recent survey conducted by the Korea Employers Federation (KEI), the respondents generally positively evaluated the level of the income replacement rate (40%) compared to the current insurance rate (9%), and raising the return on fund management was the top priority for pension reform. designated as a task.

As an activity that the National Pension Service should perform most faithfully as a trustee, 36.2% said ‘improving the return on fund management as a pure investor’. On the other hand, only 7.7% of the respondents who chose ‘active exercise of shareholder rights in investment target companies’ was the lowest.

“Many people seem to expect that they will put more effort into ‘guaranteeing the people’s old-age income’ by raising the rate of return as a financial investor rather than engaging in corporate activities such as the exercise of shareholder rights,” the KEF said. It was seen that more fundamental reforms, such as improving profitability, were given priority,” he said.

“National pension last year’s return was the lowest among pension funds in major advanced countries”

According to ‘Analysis of Total Income for Fiscal Year 2021’ recently published by the National Assembly Budget Office, the operating rate of return of the national pension was 10.86% for one year in 2021, 7.54% for five years, and 6.46% for 20 years. Compared to the previous year, the one-year rate of return and the five-year rate of return increased by 1.28 percentage points and 1.23 percentage points, respectively, but the rate of return for 20 years decreased by 0.05 percentage points.

In this regard, the National Assembly Budget Office said, “The National Pension Service’s return on investment in 2021 is the lowest compared to pension funds in major advanced countries.” , 13.66%, 12.62%, 14.51%, and 11.19%, which is 0.33% to 3.65% higher than the national pension fund management rate of Korea.” Meanwhile, the national pension fund’s rate of return is an average of 10.57% for three years (2019-2021) and 6.76% after its establishment (1988-2021).

76.6 trillion won deficit in the first half of the National Pension… The time of depletion of funds is likely to be accelerated

In the first half of this year, the National Pension Service posted the largest deficit in history, exceeding 76 trillion won. The book value has decreased as the stock price has fallen sharply this year, but concerns are growing amid concerns about the depletion of pensions.

According to data recently submitted by National Pension Service by National Assembly member Baek Jong-heon, the national pension’s return on the first half of this year was -8%, recording a loss of 76.66 trillion won. It is analyzed that global inflation, interest rate hikes by central banks in each country, and financial market volatility following the Russia-Ukraine war have had a negative impact.

As stock and bond prices fell, stocks lost 65.17 trillion won and bonds lost 20.58 trillion won. Instead, it generated 9.9 trillion won in revenue from alternative assets.

[사진 = 매경 DB]

The national pension fund’s rate of return was 10.77% at the end of last year, but it has not recovered since it turned negative in January of this year (-3.82%). The rate of return as of the end of July, which was recently announced, was also -4.69%, which is higher than at the end of June, but it is still recording a negative rate of return. Domestic stocks (-15.39%), foreign stocks (-7.53%), and domestic bonds (-3.45%) showed the largest decline in the order.

“The more difficult the financial market, the more the National Pension Fund should be used as a long-term investor, and the crisis should be used as an investment opportunity,” said Rep. Baek.

Under such circumstances, it was found that 20 people left the fund this year alone. In particular, there is growing concern that stable operation will be difficult due to the departure of a large number of manpower from overseas and alternative investment departments.

According to data submitted by National Pension Service by National Assembly member Kang Seon-woo, the number of retirees from the Fund Management Headquarters, which manages the National Pension, was 20 as of the end of August this year. This is a 54% increase from the number of people who left the company in the same period last year (13 people).

Considering that the number of retirees from the fund management team usually comes at the end of the year, Assemblyman Kang’s office observes that more managers will leave the fund management headquarters than last year (26 people). Moreover, 5 out of 20 people who left the company this year are team leaders and department managers. There are concerns that the churn of professional manpower is increasing day by day.

Rep. Kang Seon-woo said, “It is not today that the issue of manpower departure from key investment management was pointed out as the National Pension’s Achilles heel. “, he pointed out.

[사진 = 매경 DB]

In addition, the number of random (continued) subscribers this year has decreased exceptionally.

According to the office of Rep. Choi Hye-young of the National Assembly, the number of voluntary (continued) subscribers to the National Pension Service stood at 913,430 in June, down 26,322 from 93,9752 at the end of last year. Voluntary insured persons are those who sign up on their own will, and voluntary continuous insurers are those who have passed the mandatory National Pension age limit (under 60 years of age) but defer the benefits and continue to pay premiums until under 65 years of age. The number of random subscribers has been on an upward curve for 4 years from 673,015 in 2017, but this year it has been broken.

Rep. Choi believes that the two-stage reform of health insurance premiums implemented last month had a negative impact. If you have public pension income of more than 20 million won per year, you lose your health insurance dependent status and become a local insured, and you have to pay monthly health insurance premiums. Among the national pension subscribers, 2,689 people lose their dependent status. It is a small number compared to the number of civil servant pension recipients (105,516), but it is analyzed that complaints about having to pay local health insurance premiums that were not paid led to a decrease in voluntary members.

In relation to the deterioration of the national pension return, lawmaker Koh Young-in said, “In the past five months, articles dealing with the instability of the national pension have increased by 50%.” did.

To discuss the current pension reform, the government plans to finalize the fiscal calculation in March next year and prepare a comprehensive operation plan in October.

[류영상 매경닷컴 기자]
[ⓒ 매일경제 & mk.co.kr, 무단전재 및 재배포 금지]