Note 1-29

29 Macro-economic indexation is a method that reflects the increase in the capacity of the entire society to shoulder the insurance premium burden in the pension revision rates. For new pension recipients, the benefit rates are revised by extracting a certain ratio from the increase in pre-tax wages, which takes into consideration the drop in the number of persons insured under the public pension insurance plans and the increase in average length of life. For existing pension recipients, the benefit rates are revised by extracting a similar indexation rate from the inflation growth rates. Also, adjustment of pension benefits through macro-economic indexation can be implemented only for a certain period of time.