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lump sum refund thing (pension?)

 
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Zach with a Z



Joined: 19 Feb 2009

PostPosted: Mon Feb 14, 2011 11:30 pm    Post subject: lump sum refund thing (pension?) Reply with quote

My co's don't speak the best English...

how much can an EPIK teacher expect to get back after a 2 year stint?
american if that makes a diff

I am trying to save up and what not, I just am curious how much that last pay check is going to be.

thanks

and sorry if this has been covered before.
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ttompatz



Joined: 05 Sep 2005
Location: Kwangju, South Korea

PostPosted: Mon Feb 14, 2011 11:36 pm    Post subject: Re: lump sum refund thing (pension?) Reply with quote

Zach with a Z wrote:
My co's don't speak the best English...

how much can an EPIK teacher expect to get back after a 2 year stint?
american if that makes a diff

I am trying to save up and what not, I just am curious how much that last pay check is going to be.

thanks

and sorry if this has been covered before.


Severance = 1 month's pay for each year worked (unless you take it out at the end of each contract in which case you will get 1 month's pay when you leave). This is paid directly to you from your employer (within 14 days of the end of your contract).

Pension is 9% of your gross earnings for your 1st year and 6.3% of your earnings for your 2nd year. This comes from the pension office and not directly from your employer.

.
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Zach with a Z



Joined: 19 Feb 2009

PostPosted: Tue Feb 15, 2011 1:30 am    Post subject: Reply with quote

so... roughly 4 million won for pension? give or take a little? (after 2 years working)

that sound about right?
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ttompatz



Joined: 05 Sep 2005
Location: Kwangju, South Korea

PostPosted: Tue Feb 15, 2011 2:45 am    Post subject: Reply with quote

Zach with a Z wrote:
so... roughly 4 million won for pension? give or take a little? (after 2 years working)

that sound about right?


Based on a salary of 2 million, about 3.67 million for the pension refund.

.
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Vagabundo



Joined: 26 Aug 2010

PostPosted: Tue Feb 15, 2011 4:49 pm    Post subject: Re: lump sum refund thing (pension?) Reply with quote

ttompatz wrote:
Zach with a Z wrote:
My co's don't speak the best English...

how much can an EPIK teacher expect to get back after a 2 year stint?
american if that makes a diff

I am trying to save up and what not, I just am curious how much that last pay check is going to be.

thanks

and sorry if this has been covered before.


Severance = 1 month's pay for each year worked (unless you take it out at the end of each contract in which case you will get 1 month's pay when you leave). This is paid directly to you from your employer (within 14 days of the end of your contract).

Pension is 9% of your gross earnings for your 1st year and 6.3% of your earnings for your 2nd year. This comes from the pension office and not directly from your employer.

.


question on pension.

I thought it was always 9%, why does your pension contribution go down after the first year? my take home didn't go up by nearly 3% my 2nd year.
Does it stay at 6.3% after the first year until eternity? or is there is some special breakdown with time, etc?
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ttompatz



Joined: 05 Sep 2005
Location: Kwangju, South Korea

PostPosted: Tue Feb 15, 2011 5:25 pm    Post subject: Reply with quote

There was a loophole where the contributions were based on your taxable income (which was reduced by 30% in the 2nd year after you (or your school on your behalf) filed your income taxes.

This had the effect of dropping your combined pension contributions (starting in your 2nd tax year) from 9% to 6.3% of gross income.

.
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Vagabundo



Joined: 26 Aug 2010

PostPosted: Tue Feb 15, 2011 5:28 pm    Post subject: Reply with quote

ttompatz wrote:
There was a loophole where the contributions were based on your taxable income (which was reduced by 30% in the 2nd year after you (or your school on your behalf) filed your income taxes.

This had the effect of dropping your combined pension contributions (starting in your 2nd tax year) from 9% to 6.3% of gross income.

.


automatically in 2nd year for everyone?

I remember reading some posts last year, perhaps 2 years ago, where people's incomes were being underreported by 30%, but I'm not sure this applies(d) to all teachers here. just to the ones getting screwed.
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ttompatz



Joined: 05 Sep 2005
Location: Kwangju, South Korea

PostPosted: Tue Feb 15, 2011 9:09 pm    Post subject: Reply with quote

Vagabundo wrote:
ttompatz wrote:
There was a loophole where the contributions were based on your taxable income (which was reduced by 30% in the 2nd year after you (or your school on your behalf) filed your income taxes.

This had the effect of dropping your combined pension contributions (starting in your 2nd tax year) from 9% to 6.3% of gross income.

.


automatically in 2nd year for everyone?

I remember reading some posts last year, perhaps 2 years ago, where people's incomes were being underreported by 30%, but I'm not sure this applies(d) to all teachers here. just to the ones getting screwed.


Yes, but it may change for next year with the elimination of the 30% income reduction for tax purposes.

.
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ktkates87



Joined: 13 Apr 2010
Location: Busan

PostPosted: Wed Feb 16, 2011 12:38 am    Post subject: Reply with quote

Is there any difference for being a Canadian?

I will be finishing my first year at a hagwon. Sooo.....

2,100,000 salary severance pay
2,100,000 x .09 (9 percent) x 12 (months) = 2, 268, 000
= 4, 368, 000

Is this right? Or are public schools paying into the pension more? I havent really been looking at my pension contributions...
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ttompatz



Joined: 05 Sep 2005
Location: Kwangju, South Korea

PostPosted: Wed Feb 16, 2011 2:44 am    Post subject: Reply with quote

ktkates87 wrote:
Is there any difference for being a Canadian?

I will be finishing my first year at a hagwon. Sooo.....

2,100,000 salary severance pay
2,100,000 x .09 (9 percent) x 12 (months) = 2, 268, 000
= 4, 368, 000

Is this right? Or are public schools paying into the pension more? I havent really been looking at my pension contributions...


You really should check on your pension balance. Hagwan bosses have a bad habit of under-reporting your income and you don't discover it until you are on the plane (or headed to the airport) and can't do anything about it by then.

Numbers are right but you are aware that the pension refund comes from the NPS office (government) and not your employer. You will need to apply for it before you leave (ARC, passport, bank information and exit ticket).

.
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Vagabundo



Joined: 26 Aug 2010

PostPosted: Wed Feb 16, 2011 3:01 am    Post subject: Reply with quote

ttompatz wrote:
Vagabundo wrote:
ttompatz wrote:
There was a loophole where the contributions were based on your taxable income (which was reduced by 30% in the 2nd year after you (or your school on your behalf) filed your income taxes.

This had the effect of dropping your combined pension contributions (starting in your 2nd tax year) from 9% to 6.3% of gross income.

.


automatically in 2nd year for everyone?

I remember reading some posts last year, perhaps 2 years ago, where people's incomes were being underreported by 30%, but I'm not sure this applies(d) to all teachers here. just to the ones getting screwed.


Yes, but it may change for next year with the elimination of the 30% income reduction for tax purposes.

.


I still don't think all PS did this.. but you've now convinced me to check my pension..

the stupid 30% never applied to English teachers anyways. We were never taxed at those rates.. or took 30% off to be taxed at 15%. This only applied to well paid expat types.
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ktkates87



Joined: 13 Apr 2010
Location: Busan

PostPosted: Wed Feb 16, 2011 4:24 am    Post subject: Reply with quote

ttompatz wrote:
ktkates87 wrote:
Is there any difference for being a Canadian?

I will be finishing my first year at a hagwon. Sooo.....

2,100,000 salary severance pay
2,100,000 x .09 (9 percent) x 12 (months) = 2, 268, 000
= 4, 368, 000

Is this right? Or are public schools paying into the pension more? I havent really been looking at my pension contributions...


You really should check on your pension balance. Hagwan bosses have a bad habit of under-reporting your income and you don't discover it until you are on the plane (or headed to the airport) and can't do anything about it by then.

Numbers are right but you are aware that the pension refund comes from the NPS office (government) and not your employer. You will need to apply for it before you leave (ARC, passport, bank information and exit ticket).

.


Thanks! I've looked over all my paperwork and it seems like they're taxing me 9 %. And yes I am aware that I have to go through the government to get the refund, hopefully I wont be harrassing Dave's with a million questions when that time comes.
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Canonite



Joined: 01 Feb 2011

PostPosted: Wed Feb 16, 2011 5:44 pm    Post subject: Reply with quote

Do you have to apply to get your pension back or is it automatic that when you finish they give you the 9% back?
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Patrick Bateman



Joined: 21 Apr 2009
Location: Lost in Translation

PostPosted: Wed Feb 16, 2011 5:46 pm    Post subject: Reply with quote

Canonite wrote:
Do you have to apply to get your pension back or is it automatic that when you finish they give you the 9% back?


You must apply to get the money. Here is the website for Korean Pension in English: http://www.nps.or.kr/jsppage/english/main.jsp
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Canonite



Joined: 01 Feb 2011

PostPosted: Wed Feb 16, 2011 6:26 pm    Post subject: Reply with quote

Thank you! I'll keep this in mind Smile
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