SEOUL, Oct. 2 (UPI) -- The South Korean government, confronted with deficits in its pension funds, may cut benefits affecting teachers, civil servants and soldiers.
Without such cuts, the government feels the funds will soak up an increasing amount of tax dollars, reports the Korea Times.
Planning and Budget Minister Chang Byung-wan said in a radio interview that the government will reform three state pension plans for the three retiree categories under a bill, which is expected to pass by the end of this year.
Civic groups and labor unions say the country's generous public workers' pensions, which provide better benefits than those for salaried workers and self employed, will put a serious financial burden on future taxpayers.
Chang said the pension plans are projected to run out of money by 2047 because of low birthrates and the rapidly aging population unless the government raises contributions and lower benefits.
