Even if serious misconduct civil servants are reinstated, their pensions will be reduced after retirement

Amendment to the Enforcement Decree of the Government Employees Pension Act Passed at Cabinet Meeting... Improvement on Full Pension Payment Issue for Reinstated Corrupt Officials

[Asia Economy Reporter Ryu Jeong-min] Even if a public official who committed a serious misconduct returns to public office, their pension will be reduced after retirement.

The Ministry of Personnel Management announced on the 9th that the amendment to the "Enforcement Decree of the Public Officials Pension Act," which includes this provision, has passed the Cabinet meeting. Under the current regulations, public officials who have committed serious misconduct such as imprisonment or higher sentences, dismissal due to dismissal, or bribery will have their pension reduced by up to half after retirement.

However, there was an issue where the reduction effect disappeared and the full pension was paid after retirement if the public official subject to the pension reduction regulation was reinstated.

[Image source=Yonhap News]

The Ministry of Personnel Management stated, "When a public official who was disciplined and retired is reappointed, even if the periods of service are combined, the pension reduction will continue to apply for the period during which the pension was previously restricted."

Meanwhile, the Cabinet meeting on the same day included a provision to adjust the current public officials pension loan interest rate of 3% or higher to reflect changes in market interest rates. The Ministry of Personnel Management explained,

"The change allows the pension loan interest rate to flexibly respond to recent financial conditions by adjusting it based on the household loan interest rate set by the Bank of Korea, instead of the current minimum rate of 3%."

Additionally, the Ministry of Personnel Management added, "The amendment to the enforcement decree also includes improvements to the method of calculating the standard monthly income, improvements to immigration supporting documents (from departure certificate to overseas migration report confirmation), and the establishment of regulatory grounds for requesting data to verify the survival status of pension recipients."

This content was produced with the assistance of AI translation services.