The ruling Saenuri Party on Monday announced its public sector pension reform plan, which centers on increasing the age that payments can be received to 65 from the current 60.

“The plans are based on the government’s draft, but improvements have been made to the three facets of reducing (government) spending, payout according to rank and fairness compared to the National Pension,” said Rep. Lee Han-koo, the chief of the Saenuri Party’s task force on the issue.

At present, retired public sector employees can draw from the system starting at age 60, while members of the civilian population can begin receiving payments from the National Pension at the age of 65.

In addition, the ruling party’s plan will change the way the monthly payments are determined. Under the current system, the payments are determined in relation to the average salary of a government employee. Under the Saenuri Party’s system, the rates will be set in relation to the average income of all public sector employees. 

The payments for those drawing twice or more than the average will be frozen until 2025.

The Saenuri Party estimates that the measures will reduce the government’s contributions to the public sector pension system by about 442 trillion won ($420 billion) in the years running up to 2080.

According to the party’s calculations, its plan would save the government 100 trillion won more than the one announced by the presidential office on Oct. 17.

The ruling party plans to hold a general meeting of its lawmakers on Tuesday, at which it is hoped that the plan will receive the party’s general approval. The bill proposing the changes will be submitted by Saenuri Party chairman Rep. Kim Moo-sung, its chief proponent, before President Park Geun-hye’s policy address Wednesday.

The main opposition New Politics Alliance for Democracy, for its part, is taking a cautious approach, calling for “societal agreement” on the issue.

“While it is agreed that the pension system needs to be reformed, it is important to bring about a societal agreement with the concerned parties,” NPAD floor leader Rep. Woo Yoon-keun said at the first meeting of the party’s task force on improving state-run pension systems.

The government employees’ union declared that a nationwide campaign to resist the move will be launched and that a demonstration will be held in Seoul’s Yeouido on Nov. 1.

In a statement, the umbrella group for public sector unions claimed that the government was branding public employees “enemies of the state” and that its members would fight the move.

By Choi He-suk (cheesuk@heraldcorp.com)