PENSION FOR ELDERLY RESIDENTS

[Anchor Lead]

Senior poverty is one of the serious issues in Korea, especially in rural areas. Iksan City and the National Pension Service have come up with a pension for elderly residents. Its feasibility will be tested next year.

[Pkg]

Chung Jeom-bae from Iksan is 75 years old. His only fixed income is his monthly pension of around 500,000 won. It’s not enough for his family of three and to cover his medical bills.

[Soundbite] CHUNG JEOM-BAE(IKSAN RESIDENT) : "I don’t have enough money. Farmers don’t have a fixed monthly income."

Iksan City and the National Pension Service proposed a solution to guarantee a minimum living standard to seniors in rural areas. A special pension intended for elderly residents in rural areas will be provided next year. A local corporation will be selected before Iksan City and other government agencies provide renewable energy equipment to the village where it’s located. The corporation will provide the same amount of money as profits from power generation to pay out pensions to senior residents. It’s the first such project in the nation.

[Soundbite] PARK JUNG-BAE(NATIONAL PENSION SERVICE) : "Pension provided in this village will contribute greatly to helping those in need."

When seniors’ incomes increase, local governments’ burden in terms of welfare costs will decrease.

[Soundbite] JEONG HEON-YUL(IKSAN MAYOR) : "I hope the new pension will help the elderly make a living in combination with their existing incomes."

It remains to be seen if Iksan City’s idea will help reduce senior poverty in rural areas.