KOREA: More Public Servants Seek Early Retirement

SEOUL, Korea (The Korea Times), August 28, 2008: By Bae Ji-sook,Staff Reporter The public sector is undergoing a massive shakeup with a record number of workers applying for early retirement. In fear of government restructuring of public companies and shrinking pension benefits, they are rushing to collect their pension. This trend, however, could wreak havoc on the public pension system by rapidly depleting funds. According to the Ministry of Public Administration and Security, the number of public servants filing for early retirement was 5,408 in the first half, more than the 5,406 who did so the whole of last year. Of those applying for early retirement, the vast majority were schoolteachers and other educational workers (3,132), followed by provincial workers (1,384) and police (781). The figure is expected to rise further, however, as 3,869 teachers have filed for retirement in the second half, up 24.4 percent from six months ago. This year, 6,978 teachers plan to quit their jobs, representing about two percent of the country's 350,000 education workers. The absence of teachers could trigger student confusion in schools, experts said. ``If one or two well-trained and experienced teachers leave their schools at once, then entire faculties could feel insecure as well as the students,'' said an elementary school principal in Seoul's Gangnam district. The other major fear is depletion of the national pension fund. About two trillion won is needed for retirement grants and pension, but the fund can barely meet its needs. Government subsidies to make up the deficit are expected to hit 1.26 trillion won this year and 2.05 trillion won next year, up 61.6 percent up from this year. Schools are also trying to reschedule retirement applications. ``We have internally decided to only consider 80 percent of retirement applications,'' a staff member at a provincial educational office said. Fresh rumors are circulating that the retirement age could be raised to slow the pension drain. bjs@koreatimes.co.kr Copyright@koreatimes.co.kr