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wonkavite62
Joined: 17 Dec 2007
Location: Jeollanamdo, South Korea.
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 Posted: Thu Feb 25, 2016 4:06 pm Post subject: Korean Pension Contributions For UK Citizens |
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As I understand it, North Americans can get their Korean pensions contributions returned to them when they leave Korea, and can then use it to top up a pension back home. But British people cannot. They just pay into the Korean system and Korea keeps the money, unless they decide to live in Korea until retirement. I read online that there was a bilateral arrangement between Korea and the U.K. on this issue now.
What is the full situation? |
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edwardcatflap
Joined: 22 Mar 2009
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| Posted: Thu Feb 25, 2016 6:08 pm Post subject: Re: Korean Pension Contributions For UK Citizens |
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| wonkavite62 wrote: |
As I understand it, North Americans can get their Korean pensions contributions returned to them when they leave Korea, and can then use it to top up a pension back home. But British people cannot. They just pay into the Korean system and Korea keeps the money, unless they decide to live in Korea until retirement. I read online that there was a bilateral arrangement between Korea and the U.K. on this issue now.
What is the full situation? |
As I understand it, You don't have to live in Korea until you retire, only 10 years minimum, but you can only start collecting it at retirement age. |
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motiontodismiss
Joined: 18 Dec 2011
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| Posted: Thu Feb 25, 2016 9:27 pm Post subject: Re: Korean Pension Contributions For UK Citizens |
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| edwardcatflap wrote: |
| wonkavite62 wrote: |
As I understand it, North Americans can get their Korean pensions contributions returned to them when they leave Korea, and can then use it to top up a pension back home. But British people cannot. They just pay into the Korean system and Korea keeps the money, unless they decide to live in Korea until retirement. I read online that there was a bilateral arrangement between Korea and the U.K. on this issue now.
What is the full situation? |
As I understand it, You don't have to live in Korea until you retire, only 10 years minimum, but you can only start collecting it at retirement age. |
The ever-elusive retirement age that the government keeps pushing back to hide the fact that it's a giant ponzi scheme.
If you've paid in for less than 10 years, you'll get what you paid in(employer+employee contributions), plus interest, in lump sum. For Koreans, it's either retirement age or when they become permanent residents of another country. I don't see why it would be any different for the British, unless there's some kind of reciprocity agreement with them in place. |
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ttompatz
Joined: 05 Sep 2005
Location: Kwangju, South Korea
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| Posted: Thu Feb 25, 2016 10:58 pm Post subject: Re: Korean Pension Contributions For UK Citizens |
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| motiontodismiss wrote: |
The ever-elusive retirement age that the government keeps pushing back to hide the fact that it's a giant ponzi scheme.
If you've paid in for less than 10 years, you'll get what you paid in(employer+employee contributions), plus interest, in lump sum. For Koreans, it's either retirement age or when they become permanent residents of another country. I don't see why it would be any different for the British, unless there's some kind of reciprocity agreement with them in place. |
There ARE bilateral treaties with the 7 nations who qualify as English E2 teachers.
※As of June 2015: 16 countries (Canada, United States, Germany, Hungary, France, Australia, Czech Republic, Belgium, Bulgaria, Slovakia, Poland, Romania, Austria, India, Turkey, Swizerland) can get refunds.
SAFFERs are exempt.
Brits, Irish and Kiwis don't get a refund but can draw their pension at retirement age provided they have made 10 years of contributions.
http://english.nps.or.kr/jsppage/english/scheme/scheme_04.jsp
HOWEVER:
A lump-sum refund is payable when a person can no longer be covered under NPS because of age, emigration or death, etc., but has not obtained the qualification for a pension benefit.
When a person who is or was an insured person comes under one of the following conditions, a lump-sum refund is paid:
1. In the case when a person who had been an insured person for less than 10 years reaches the age
of 60 (except for the Special Old-age Pension beneficiaries)
※ The age for Lump-sum Refund (in the case of 1) is adjusted as follows;
People born between 1953 and 1956: 61 years of age
People born between 1957 and 1960: 62 years of age
People born between 1961 and 1964: 63 years of age
People born between 1965 and 1968: 64 years of age
People born in 1969 and beyond: 65 years of age
http://english.nps.or.kr/jsppage/english/scheme/scheme_03.jsp
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wonkavite62
Joined: 17 Dec 2007
Location: Jeollanamdo, South Korea.
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| Posted: Fri Feb 26, 2016 6:57 am Post subject: Hi |
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| It seems terribly unfair if UK and New Zealand citizens can't get the refund. Even if Koreans working in the UK wouldn't get a refund of contributions to our system, it is still unfair. It is unfair to some people who choose to work in a country they are not citizens of. Thank you Ttompatz for your advice, which is as always comprehensive and useful. |
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ttompatz
Joined: 05 Sep 2005
Location: Kwangju, South Korea
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| Posted: Fri Feb 26, 2016 3:10 pm Post subject: Re: Hi |
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| wonkavite62 wrote: |
| It seems terribly unfair if UK and New Zealand citizens can't get the refund. Even if Koreans working in the UK wouldn't get a refund of contributions to our system, it is still unfair. It is unfair to some people who choose to work in a country they are not citizens of. Thank you Ttompatz for your advice, which is as always comprehensive and useful. |
They can get a refund at age 60 if they don't qualify for a pension at age 60.
Otherwise, the lack of a refund is due to the treaty between your country and Korea so it is not a discriminatory practice - blame your MPs from home.
Aussies weren't covered until a few years ago and it was placed into the bilateral treaty because of noise made by Aussie expat workers contacting their MPs.
S.Africans are exempt from paying in for similar reasons (reciprocal treatment).
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ed1980
Joined: 04 Feb 2003
Location: Goyang
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| Posted: Tue May 23, 2017 8:13 pm Post subject: |
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is the pension a flat rate ??
I have recently changed jobs and my wages are much lower than before - but I am still getting deducted the same (130,000 won) as before.
And am I right in saying, as a Brit - IF I contribute for 10 years - I get it back when I'm in my 60s even if I have left this pleasant land by then ??
cheers |
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ttompatz
Joined: 05 Sep 2005
Location: Kwangju, South Korea
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| Posted: Tue May 23, 2017 10:48 pm Post subject: |
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| ed1980 wrote: |
is the pension a flat rate ??
I have recently changed jobs and my wages are much lower than before - but I am still getting deducted the same (130,000 won) as before.
And am I right in saying, as a Brit - IF I contribute for 10 years - I get it back when I'm in my 60s even if I have left this pleasant land by then ??
cheers |
NPS is NOT a flat rate but a contribution of 4.5% of your salary and that is matched by your employer for an annual contribution equal to 9% of your salary.
IF you are at a hagwon then CHECK with the NPS to make sure the employer is making appropriate contributions to the NPS. Far too many hagwons make the deductions but never pay in leaving the employee screwed and not knowing until it is too late to do anything about it.
As a Brit (or any other nationality other than S.African), if you contribute for 10 years or more then you get a pension starting from age 60. If you have more than 10 years in there is NO lump sum payout.
If you are a Brit, Kiwi, Irish and have less than 10 years in then you get the lump sum payout at age 60.
For Americans, Canadians and Aussies they get a lump sum payout when they make a final departure from Korea provided they do not have 10 years in. (If 10 years or more then they also have to wait and get their pension at 60).
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ed1980
Joined: 04 Feb 2003
Location: Goyang
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| Posted: Tue May 23, 2017 11:04 pm Post subject: |
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thanks man - you are the best
loos like something is amiss
It seems I was paying about 4.5% at old place, and much higher at new place! |
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ed1980
Joined: 04 Feb 2003
Location: Goyang
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| Posted: Thu Feb 08, 2018 3:36 pm Post subject: |
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I ended up paying more than I should have this school year because of the insistence of my school deducting the same amount in each month.
My school says that I should get whatever extra I have paid when we submit our taxes shortly
Is this true or are they telling porkies ???
thanks |
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CentralCali
Joined: 17 May 2007
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| Posted: Fri Feb 09, 2018 1:35 am Post subject: |
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| ttompatz wrote: |
| ed1980 wrote: |
is the pension a flat rate ??
I have recently changed jobs and my wages are much lower than before - but I am still getting deducted the same (130,000 won) as before.
And am I right in saying, as a Brit - IF I contribute for 10 years - I get it back when I'm in my 60s even if I have left this pleasant land by then ??
cheers |
NPS is NOT a flat rate but a contribution of 4.5% of your salary and that is matched by your employer for an annual contribution equal to 9% of your salary.
IF you are at a hagwon then CHECK with the NPS to make sure the employer is making appropriate contributions to the NPS. Far too many hagwons make the deductions but never pay in leaving the employee screwed and not knowing until it is too late to do anything about it.
As a Brit (or any other nationality other than S.African), if you contribute for 10 years or more then you get a pension starting from age 60. If you have more than 10 years in there is NO lump sum payout.
If you are a Brit, Kiwi, Irish and have less than 10 years in then you get the lump sum payout at age 60.
For Americans, Canadians and Aussies they get a lump sum payout when they make a final departure from Korea provided they do not have 10 years in. (If 10 years or more then they also have to wait and get their pension at 60).
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Also check what amount the hagweon is contributing. Don't just ask if contributions have been deposited. A fun scam a while back was the boss would declare your income as 1/2 its actual amount and the hagweon would deduct the actual correct amount from your salary, turning that over to NPS while declaring that yours and their contributions combined. |
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tophatcat
Joined: 09 Aug 2006
Location: under the hat
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| Posted: Fri Feb 09, 2018 2:51 am Post subject: |
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^^^^^^^^^^^ Above
I know of a hakwon that did this scam. It's now out of business. |
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ed1980
Joined: 04 Feb 2003
Location: Goyang
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| Posted: Tue Feb 27, 2018 8:52 pm Post subject: |
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thanks
so in theory I should get whatever extra I have paid when we submit our taxes shortly ??? |
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