In response to the ruling Saenuri Party’s recent controversial proposal to cut the monthly pension for public servants by 34 percent, unionized public workers nationwide are raising funds to fight against the reform.

The Confederation of Korean Government Employees’ Unions, the representative body of some 1 million public servants nationwide, plans to raise a total of 10 billion won ($9.6 million) to pressure the ruling party and its partner the Korean Pension Association to cancel the reform proposal.

Under the proposal, public employees will have to pay 43 percent more in premiums and receive 34 percent less in pension payouts.

The unionists say the ruling party’s plan is to mainly serve the members of the KPA, many of whom are associated with private insurance companies ― including Samsung Fire & Marine Insurance and Hanwha Life Insurance. 

Each unionized worker donated funds ranging from 50,000 won to 300,000 won over the past two months, depending on rank and income.

A number of regional unions of public servants, including those in Daejeon and Gyeonggi, North Jeolla, North Chungcheong and Gangwon provinces, have each already raised more than 100 million won.

The funds will be mainly used for travel expenses for unionized public workers who live outside of Seoul, as most events against the reform plan are scheduled to be held in the nation’s capital.

According to the government and the KPA, retired public servants receive a monthly average of 2.19 million won, while recipients of the national pension program, which covers those outside the public service, education and military sectors, receive 870,000 won.

This means retired civil workers receive 2.4 times what they pay in premiums, while the other pensioners only receive 1.7 times the premium paid, according to their proposal.

On Monday, a forum about the pension reform, organized by the Saenuri Party and the KPA, was cancelled as some 200 unionized public workers blocked its proceedings in a National Assembly conference room.

By Claire Lee (dyc@heraldcorp.com)