SEOUL, Dec. 5 (Korea Bizwire) — The Birth Credit Program offered by the National Pension Service (NPS) is benefitting an increasing number of people.
The program offers a larger pension after retirement if a member gives birth to two or more children by adding extra hours to the duration of membership.
The amount of pension increases if the member pays more and retains membership over a longer period.
The NPS reported that 1,208 members have benefitted from the Birth Credit Program this year. The total amount of birth credits distributed to these members was roughly 40 million won per month (US$36,740).
The number of beneficiaries increased from 287 people in 2014 to over 1,000 members in 2018.
The Ministry of Health and Welfare plans to expand the program to address the country’s low birthrate. The program adds six months of membership for each child, up to a maximum of 50 months.
Despite efforts to ensure pensions for female members and encourage couples to have more children, only 1.4 percent of female members are currently benefiting from the program.
Male members usually begin receiving pensions earlier than females, and many female members fail to meet the requirement of retaining membership for 10 years before earning the right to receive a pension.
The birth credit is given to one of the parents if both father and mother are members of the national pension. The credit can be evenly divided and shared between the two parents as well.
Lina Jang (email@example.com)