National Pension Law of which enforcement had been reserved since its enactment in 1973 came into force on January 1, 1988. Under this pension program based on social insurance scheme, while industrial workers of the establishment that has more than 10 employees are compulsorily insured, farmers and fishermen including self-employers and workers of the establishment that has less than 10 employees are voluntarily insured; especially socio-economic charaoteristics of the farmers and fishermen are not reflected. This situation causes the problem that farmers and fishermen are, in fact, left excluded from the benefits of public pension system.
Conceiving this problem, serious this study is concerned with presenting justifications for immediate and separate introduction of public pension program for farmers and fishermen (PFF) independent of existing national pension program, and proposing a basic structure of the PFF.
Farmers and fishermen have the following socio-economic characteristics: (1) While their total population is rapidly decreasing their elderly population is rapidly increasing. (2) Their farm oppration is small scale. (3) Their income level relatively lower than industrial workers´. (4) They have not prepared for financial security for their old age. (5) Accidents related to farming machines and agricultural chemicals are increasing. Social policy against these aversary conditions has been minimal and limited to the economic perspective, thus regarding rural area as "food production place" rather than "human dwelling place."
From a review of literature about socio-economic background that contributed to the introduction of PFF and its initial system in industrialized countries such as Germany, France and Japan, the following generalizations could be drawn: (1) The PFF tended to be introduced 20-30 years later than the public pension for industrial workers. (2) Farmers were devided into farm operators and agricultural workers, and both groups were insured under different pension program. (3) Major benefit categories are old age pension and farm operation transfer pension, which is given to encourage the transfer of farm operation as soon as possible. (4) Government assisted half of the premium for the pension program. (5) the PFF tended to be introduced as independent program separate from the public pension program for industrial workers.
Upon generalizations form the PFFs in industrialized countries the following justifications for immediate and separate introduction of the PFF. The PFF should be immediately introduced (1) in order to achieve goals of social security system more effectively, (2) in order to maintain national equity and social integration, (3) in order to expedite social development as well as economic development, (4) in order to narrow developmental gap between rural and urban area according to unpreceded rapid change in industrial and social structure, (5) in order to lighten increasing burden to support the elderly population in rural area. The PFF should be introduced as independent program separate from the existing national pension program (1) in order to reflect socio-economic characteristics of farmers and fishermen, (2) in order to make governmental financial assistance more justifiable, (3) in order to provide specific benefits appropriate to agricultural accidents, (4) in order to improve agricultural operational structure.
Based on the above justifications for immediate and separate introduction of the PFF, the following basic structure of the PFF could be proposed:
(1) Coverage: (a) For old age pension the PFF will compulsorily cover those farm operator and assistant workers among farm operator´s family members who are 18 years and over to under 60. (b) For farm operation transfer pension the PFF will compulsorily cover farm operator who has land of 0.5 ha and over, while voluntarily cover those who operate land less than 0.5 h. (c) For accident benefits the PFF will voluntarily cover all those who are insured for old age pension,
(2) Benefit Categories: (a) Old age pension (normal, reduced, and advance old age pension) (b) Disability pension (c) Survivors´ pension (d) Farm operation transfer pension (3) Accident pension (f) Lump sum payment for those who are nto insured for sufficient period.
(3) Finance: (a) For old age, disability, survivors´ pension premium will be shared by both the insured and government, of which assistance will vary from 1/4 to 1/2 according to the income level of the insured. (b) For farm operation transfer pension premium will be equally shared by both the insured and government. (c) For accident benefits additional premium will be borne by th insured.
(4) Administration: The PFF is to be administered by existing National Pension Administration Corporation, with independent funds separate from that of the national pension program.
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