Korean Job Discussion Forums

[hojusaram]

I specifically refer you to the last part if the article!

Article 34 (Retirement Allowances System)

* (1)An employer shall establish a retirement allowance system whereby an average wage of more than 30 days shall be paid for each year of consecutive years employed as a retirement allowance to a retired worker; however, if the worker was employed for less than one year, this shall not apply.
* (2)In establishing the retirement allowance system stipulated in paragraph (1), a differential retirement allowance system shall not be permitted within one business.
* (3)An employer may, at the request of workers, pay retirement allowances in advance for the period of continuous employment of the worker concerned by adjusting the balances of remunerations before his retirement, irrespective of the provisions of paragraph (1). In this case, the number of years of continuous employment for the computation of retirement allowances shall be counted anew from the moment the latest adjustment of balances has been made.
* (4)In cases where an employer has enrolled in pension insurance program for retirees or its equivalents(hereinafter referred to as "pension insurance for retirees") for workers, whereby workers receive lump sum payment at the time of retirement, or draw their pensions, it shall be deemed that the employer has set up a retirement allowance scheme in accordance with paragraph (1). The amount of lump sum by pension insurance, however, shall not be smaller than that of retirement allowances pursuant to paragraph (1).

[ttompatz]

[hojusaram]

OK once more with gusto.
Thankyou! So much for that website it cleared up very clearly that Universities do not and are not required to pay a severance payment for the following reasons.

I can now provide the definitive answer that I wanted.

If you look at the National Pension Scheme you will note the following.
http://www.nps4u.or.kr/eng/enpsk.html?code=./enpsk/a06.html

I ask you to take specific notice to the last sentence of Number 1.

-------------------Bold and Underlined area----------------------------
National Pension Scheme and foreigners

1. Foreigners and Coverage

At the time of the introduction of the Scheme, foreigners were not mandatorily covered. Only foreigners working in a workplace covered under the Scheme could be covered as an Workplace based Insured Person by submitting an application.

Foreigners working at the workplace with more than 5 full-time employees were included in the mandatory coverage in August 1995 and those working at the workplace with less than 5 employees including self-employed foreigners were also included in the mandatory coverage in April 1999. Accordingly, foreigners aged from 18 to less than 60 who reside in Korea must be, in principle, covered under the Scheme. But foreigners falling under any of the following items are excluded from the coverage.

�� Those whose country does not mandatorily cover Korean citizens under its pension scheme.
�� Foreigners who are not registered under the Immigration Act, or to whom the forced deportation order has been issued under the same Act, or who are staying in Korea without being permitted to extend their term of stay.
�� Among the registered foreigners under Immigration Act, those whose stay status falls under any of the followings; culture & art, studying abroad, industrial training, general training, religion, visiting & living together and others.
�� People excluded from the mandatory coverage of National Pension Scheme, by the social security agreement.

So we need to look at the Social Security Agreement to decide if (private schools and universities) are excluded and guess what !! Check it out!

-------Next we look at the Social Security agreement and look at Number one and the Figure 6. ----------------------------

http://www.nps4u.or.kr/eng/enpsk.html?code=./enpsk/a09.html

I specifically refer you to the following:----
The Public Pension Scheme consists of the (1) National Pension Scheme for employees of private companies and the self-employed persons, (2) Government Employees Pension Scheme, (3) Military Personnel Pension Scheme, and (4) Private School Teachers Pension Scheme (see Figure 6). The three special occupational pension schemes are interrelated, and similar in terms of their contribution rates, type of benefits and benefit conditions, etc. In addition, there are Individual Pension Plan for the general public as a private pension and Retirement Payment Scheme which, although not a pension plan, functions as a post-retirement income protection mechanism for those working in workplaces with more than 5 employees.
------------------------------------------------------------------------------


Great thanks for the information and its wonderful to know the actual law on the issues rather than a lot of hearsay isnt it!

[hojusaram]

It has been confirmed legally for me now as well that universities are not obliged to pay severance pay at the completion of contract if they are under the Private Schools and Universities Pension Fund.
You can phone the Korean Government Labour Law Office yourself to verify this. Google it.
Regards,
Lance.

[Moldy Rutabaga]

My question is slightly off-topic, but I would appreciate some advice on this or a link.

I have worked in a government program at a public university for three years, three contracts. I am leaving my last contract two months early, and amicably, in order to pursue graduate studies. Am I owed partial severance on ten months? The department seems reluctant to pay this.

Thanks.
Ken:>

[fruitcake]

I've been here a few years and am hoping to see how much I have put into the pension program. Is there anyway to do this online, or can I contact a pension office and find this info?

Thanks!

[ttompatz]

[JZer]

[Canuckophile]

Many questions here:

SEVERANCE:
1) My uni is not being very forthcoming about WHEN severance will be paid. IS THERE A TIME LIMIT? At my other contracts, I got it instantly upon leaving. Why should this be delayed now? (One of my prior contracts was a public school, and they paid right away, so I don't think it's "bureaucracy.")

2)My uni contract says it will be paid "after the Teacher has cleared all the outstanding debts and bills and returned office and lab keys .... etc. ... in good condition." IS THIS A STRONG ENOUGH STATEMENT that I can just go and say: "OK. It's done. Show me the money"

3) I am also getting a run-around (conflicting answers) on WIRING me the severance in case I will have left Korea by the time they get around to paying it. One Finance guy says they can do it - while our English dept. seems to be saying they WILL NOT (note: they will refuse) to do this. IS THERE ANYTHING IN THE LAW on wiring severance funds? I can't figure this out - when the visa expires, we MUST leave, so why shouldn't they wire it if they are screwing around about getting it to us????

PENSIONS
1) And I notice my contract says nothing about PENSION - is this normal?

2) I think I understand accurately from all these posts that you have to apply to the Pension Fund to get refunds... Where is the Pension Office? What do I take with me? If I plan to return to Korea in about 6 months, should I do this or not????

3) Frankly, I can't GUARANTEE that I'll be back in Korea, but tentatively plan to return... if I don't return, would I have to enter the country again to CLAIM the pension refund?

THANKS MUCH!

[Michelle]

Hey There,

My prospective university is offering health insurance for 40,000~50,000 won (ok) but the National Pension is 140,000~200,000 won per month. The University matches that amount. Even if I earn 2.4 million the pension should be 4.5% which is 108,000 Won. I understand they might have their own pension plan but I don't think so. As an Aussie I get none of this back.

Plus the base rate is 1.6 million, although the professors make a killing on overtime (after 18 hours a week it kicks in). They have to teach ajumas and children during the day.

Should I agree to this? I feel ripped off. Last time I did better but stayed in a dorm. Here I would get an on campus apartment though.

They are getting cheaper and trying to make more from the public.

What to do?
Hmmmm. Still tempted? Not sure.

[lov2travel]

I am trying to find a link that works where I can read about the National Pension Scheme.

My hagwon has told me they are not required to use it, I want to see what the law says about it.

Every link on here is defunct.