Cabinet approves basic pension bill for seniors

The Cabinet on Tuesday approved a controversial bill on basic pension for senior citizens, one of President Park Geun-hye's major election pledges.

The bill calls for paying a monthly pension of up to 200,000 won (US$190) to people aged 65 or older who are in the bottom 70 percent of income earners.

The proposed legislation also requires the government to review pension winners' eligibility every five years based on inflation and their income, according to the government.

The pension program for the elderly was part of President Park's election promises. In her initial plan, all senior citizens aged 65 or higher were entitled to the monthly pension regardless of their income levels, but she scaled back the program in September due to fiscal restraints.

Protesting against the revised plan, the then health and welfare minister, Chin Young, resigned from his seat, protesting against what is a downsized version of what was promised by Park during her election campaign.

After getting the go-ahead from the president, the bill will be sent to the National Assembly for approval.

(Yonhap News)