In this study, we set up a 60-generation overlapping model and conduct a simulation analysis to compare and evaluate the four alternative proposals for the national pension reform in 2007: the existing national pension plan, the reform proposed by the Woori Party, the reform drafted and submitted to the congress by the government in 2006, and the current national pension plan passed by the Congress in 2007. Taking into consideration the soundness of the balance of pension account, the long-term effect of the pension on the level of the major economic variables, and the long term effect of the pension on the variability of the major economic variables, we found that the proposal made by the government was a better alternative. Though the current pension system improves upon the existing system, it is inferior to the Government’s proposal. The decision made by the Congress in 2007 regarding the pension reform may not have been the most desirable.