Pension agency suffering from ‘brain drain’
The National Pension Service (NPS) that manages over 700 trillion won in assets was once a highly regarded workplace for asset managers, but it is now struggling to keep employees due to its relocation to Jeonju and “inadequate” compensation.
The agency moved to the southwestern city in February 2017 as part of the government’s plan to develop provincial areas by dispersing public institutions concentrated in Seoul.
Increasing the agency’s assets through investment is crucial at a time when the fund is forecast to become depleted due to the aging population.
However, data show a significant percentage of those in asset-managing positions have left.
According to information from Rep. Kim Seung-hee of the main opposition Liberty Korea Party, 108 employees have left the agency since 2016.
Among them, 80 belonged to the alternative, stock and bond investment divisions.
Most moved to asset management companies, while others went to public institutions, law firms or accounting firms.
They are believed to have left due to the agency’s location and relatively low pay levels.
Meanwhile, the NPS recruited for 26 positions for the latter half of this year, but only 15 applicants have been accepted, the agency confirmed, Thursday.
An NPS official said: “We are continuing to recruit and there are many applicants, but we hire only those who are qualified for the positions.”
The agency is planning additional recruiting this year.
The official also said the agency is preparing an internal training program for asset managers that is set to begin next year.
The NPS allocated a budget for the program last year.
“The competitiveness of asset management experts at the NPS is directly related to the people’s retirement funds,” Rep. Kim said.
“Not only the NPS, but also the Ministry of Economy and Finance, which controls the budget, should discuss improving compensation as well as incentives for asset managers, in order to prevent them from leaving.”