National Pension Service fund management staff received performance bonus payments totaling 45.65 billion won for last year, including deferred amounts, according to financial industry sources. The payment significantly exceeded the original budget of 26.506 billion won by approximately 1.7 times, driven by a payment rate of 78.6% compared to 36.5% the previous year. The substantial increase resulted from system reforms that raised bonus calculation standards from basic salary totals to 1.5 times basic salary totals and introduced absolute performance evaluation alongside existing relative evaluation methods.
National Pension Service Confirms 45.65 Billion Won Performance Bonus Payment
The Fund Management Division's performance bonus payment rate reached 78.6% for last year, more than double the previous year's 36.5%. The Fund Management Division head's payment rate stood at 88.6%. The confirmed payment amount of 45.65 billion won, including deferred payments, required an increase of approximately 17.3 billion won in fund operating expenses beyond the initially allocated budget of 26.506 billion won.
System Reforms Raise Bonus Standards and Introduce Absolute Evaluation
The National Pension Service implemented structural changes to its performance bonus system starting this year. The bonus calculation standard increased from the sum of basic salaries to 1.5 times the sum of basic salaries. The performance evaluation methodology introduced absolute evaluation for the first time. Target performance bonuses, one of three bonus categories alongside organizational and long-term service bonuses, now reflect 40% relative evaluation and 30% absolute evaluation based on five-year cumulative performance. Previously, target performance bonuses evaluated only relative performance through single-year and three-year benchmark excess returns. Absolute evaluation can lead to higher performance bonuses than relative evaluation during bull market phases.
![National Pension Service performance bonus data visualization]()
Performance bonus payment trends and evaluation methodology breakdown
Absolute Evaluation Contributes 9.751 Percentage Points to Payment Rate
Target performance bonus amounts reached 35.915 billion won for last year, more than six times the previous year's 5.92 billion won. The payment rate of 70.1% marked the highest level in the past five years, rising over 50 percentage points from the previous year's 19.4%. In target achievement calculations, absolute evaluation contributed 9.751 percentage points while relative performance contributed only 0.157 percentage points.
The National Pension Service Risk Management and Performance Compensation Expert Committee assessed that a substantial portion of absolute performance originated from Strategic Asset Allocation (SAA) decisions made by the Fund Management Committee rather than fund manager performance. Of the five-year average financial sector return of 9.75%, the SAA effect accounted for 9.59 percentage points, explaining 98.39% of total performance. Overseas equity showed the highest contribution among long-term absolute performance components, indicating the effectiveness of the SAA-level strategy to expand overseas assets.
FAQ
What was the National Pension Service's performance bonus payment for last year?
The National Pension Service confirmed performance bonus payments totaling 45.65 billion won for fund management staff last year, including deferred amounts. This exceeded the original budget of 26.506 billion won by approximately 1.7 times, with a payment rate of 78.6% compared to 36.5% the previous year.
Why did the National Pension Service performance bonus increase significantly?
The increase resulted from system reforms that raised bonus calculation standards from basic salary totals to 1.5 times basic salary totals and introduced absolute performance evaluation (30%) alongside relative evaluation (40%). Target performance bonuses reached 35.915 billion won, more than six times the previous year's 5.92 billion won, with absolute evaluation contributing 9.751 percentage points to the payment rate.
How did Strategic Asset Allocation affect National Pension Service performance?
Strategic Asset Allocation (SAA) decisions explained 98.39% of the National Pension Service's total performance, accounting for 9.59 percentage points out of the five-year average financial sector return of 9.75%. The Expert Committee assessed that most absolute performance originated from SAA decisions rather than individual fund manager performance, with overseas equity showing the highest contribution.
