Korean Job Discussion Forums

[Hanson]

We are having a problem with our Teacher's Pension Plan at the uni I work for. The powers that be are saying one thing, but the Teacher's Pension website says another... This is the Teacher's Pension Plan, not the National one.

There are a few teachers leaving who found out our uni isn't matching the money the teachers are putting in.

Also, ttompatz said this in another thread pertaining to the National Pension Plan:

[ttompatz]

If you're gonna pick a fight then you better bone up on the current legislation:
Employee Retirement Benefit Security Act http://english.molab.go.kr/data/EmployeeRetirementBenefitSecurityAct.pdf

[justaguy]

Hanson I used to be enrolled in that pension plan. I withdrew my money about 2 years ago. I don't know if any changes have happened since then.

Here's the low down as of 2 years ago.

The employer does not match your contributions until you have been contributing for 5 years. Any refund you get before 5 years of service in your job will entitle you to your contributions only. No matching funds from the employer. It sucks. If you contribute to that pension plan for more than 5 years they will match the amount you contributed.

You've been around a while, so I'm sure you have heard of some schools imposing 3 year term limits on teachers. This novel idea allowed schools to not re-sign a teacher and not have to match the pension contributions thus saving them a lot of money. Does your school have a 3 year term limit? It wouldn't surprise me if they do.

There is also a legal loophole in that pension plan that allows the employer to not pay severence pay. It supercedes labor law. I always thought that pension and severence were seperate issues, but not if you are in the private teachers pension plan.

That was the deal as of 2 years ago. I don't know if any changes have happened since. National pension is far better than private teachers pension.

[Hanson]

[justaguy]

Hanson, there is another thing I forgot to add. When I left my last job, the school insisted that they collect my pension refund for me. They then would deposit it into my account. Even though I have an F2 the pension fund would not allow anyone (including my sponsor) to collect the money.

When I was enrolled in the National Plan I just went to the pension office with the wife and no problem.

I have never seen the plan in writing but they do have a website. I don't remember what it was. You'll need to get the wife to find it for you.

What your school is doing is slimey. Sounds like they are doing what they can to weasel out of paying you guys.

I'm sorry to be the bearer of bad news.

[Hanson]

^ Thanks for that... It'll be difficult, then, for leaving teachers to get their pension money if they need to leave the country soon after their contract is done...

I've taken a look at the website (the English one, anyway), but it is incredibly under-informative (is that even a word?).

Justaguy - thanks for taking the time.

[Young FRANKenstein]

[Toronto]

http://www.ktpf.or.kr/website/english/en_main.jsp

Someone needs to find out about this organization. The staff are hostile

and refuse to anything down in print. Phone them 02-769-4225 and ask

for them to send you information. This is a private pension fund and you

are a customer. They should provide you with proper service. Ask why

overtime is not included in your pension benifits. No wonder schools pay a

bas salary 2. mil and stack on overtime. It is how universities avoid

having to pay.

[Toronto]

http://www.ktpf.or.kr/website/pension/pension03_01.jsp?pdIdx=1

making sense of it is another thing.

[fishy]

We had the same kinds of questions at my uni, so the administration staff brought in the people from the pension office to explain the program.

The upshot is that if you change schools, you don't have to cash out if your new school is also on the teacher's pension program. My partner and I are switching schools, so all we have to do is inform our new university that we were in the pension program and that we'd still like to be in the program. You don't get reset back to zero if you change schools as long as that new school is on the same program. A fellow from another uni did the same thing when he came to my present uni. He's hit the 5 year mark and now he's home free because he will get the uni's matching contributions. Apparently, you can check your status on the site. I've never done this, but some folks at the office check all the time.

If you do cash out, you have up to 2 years to buy yourself back into the program. So, suppose you spend 3 years at uni A that uses the teacher's pension program, then cash out, then you switch to uni B that uses the national program, you have two years to leave uni B and move onto uni C that's on the pension program. When you're at uni C, you can use that cash out money to put yourself back into the program at year #3. Then, it's just 2 years more at uni C until you hit that magical 5 year mark.
Heh-heh. It's perfectly clear!


BTW, there's a small amount of money that is added to your pension contributions before the 5 year mark. The Korean government kicks in something like 11%. So you do get a little bit more than a kick in the teeth.

[Hanson]

Ok, so we just had a meeting today where two reps from the Teacher's Pension Plan were invited to attend and field a Q&A session.

The first thing that surprised us (teachers) is that they apply the pension percentages of contributions on the average salary of all teachers in Korea with similar experience and qualifications. This means the contribution percentages are not applied on what I actually make, but on what all the teachers in Korea make who are similar to me. This average salary is much less than our actual salary.

The second thing was they were very reluctant to give us official yearly updates of our pension status and accumulated contributions, referring us to their website instead. Our uni's payroll department nicely offered to do this for us in their stead, since the pension guys seemed very reluctant to agree to it.

Third, justaguy was fairly accurate - the contributions for the first five years under the plan are inserted into a formula (which I still don't understand completely... ) in which it is multiplied by years of service, and multiplied by 1.2. After five years, it is multiplied by years of service and by 1.5, retroactive to your first year of contributions.

Also, they really pushed the fact that the Teacher's Pension offers something like 18 more benefits than the National Pension, which included things like Life Insurance, on-work accident coverage, and other benefits us teachers would seldom ever use. These benefits seemed very insurance-ish...

Many teachers remarked that the National Pension was much better for Canadians and Americans, because we got a lot more back in the end with the National Pension. However, Brits and Aussis felt the Teacher's Pension was better because they can get something back from the Teacher's Pension, but they get nothing from the National Pension.

All in all, it was informative, but most teachers felt the National Plan was much better, especially for North Americans who stay here short term.

Hope this helps someone cuz it took a long time to type!

Thanks to ttompatz and justaguy for their helpful info.

BTW - ttompatz, I printed out the pension Act you linked and showed a few points that weren't/haven't been followed, but I have no idea what will come of it... They seemed dismissive of it.

[jackson7]

MODS please makes this a sticky as this information is very useful and applies to many of us not on or no longer on the national pension system.

[Young FRANKenstein]

[Toronto]

Pension systems are a situation A or B type plan.

Situation A � Severance Pay (Pension). Work at a school for 20 years you get 20 months severance pay without contributing anything. Plus the national pension (it is run by the government and if you read the papers - in BIG trouble) that you have to pay into by law.

Situation B � Private Teachers Pension. Work at a school for 20 years you get a monthly pension (50% of your monthly pay -i think) every month till your dead. In this system you contribute and the school makes matching payments.

PS>
Hanson who came down and talked to you? I would love to meet this guy. Please let me know how to get a hold of him because the guy I talk to at the Teacher�s Pension office is a dork. There is an important question to ask them:

Why aren�t my overtime wages counted in the average salary?

평균보수월액 (The Average Monthly Salary)
퇴직한 날의 전날 또는 재직중 사망시에 사망일이 속하는 달부터 소급하여 3년간(2001년 1월 1일 이후의 재직기간 또는 2001년 1월 1일 이후에 합산된 재직기간에 한하며 해당 재직기간이 3년 미만인 경우는 그 재직기간에 한함)의 보수월액을 현재가치로 환산한 후 이를 합산하여 해당월수로 나눈 금액을 말함.
One`s average monthly salary is very important in that it is used for calculating of his or her contribution, benefits and annuity.
The total sum of one`s average monthly salary for the 3 years prior to the very month when he or she is retired or dead is re-calculated in terms of current value and then divided by the number of months(or divided by total months of his or her service if the length of service is less than 3 years or if the averaged months are less than 3 years).
One`s 3 years` service prior to the very month when he or she is retired or dead must be counted from 1st of January, 2001 onward.

[justaguy]

Hanson your welcome.

There's a lot of confusion about this topic and I thought my 2 cents would be helpful.

Interestingly 2 days ago I got a letter from the pension office about buying back in and continuing payments as my new job pays into the same plan. I decided against it. I thought it better to take the refund and put it toward my key money deposit. Better to live in your money today then let it sit somewhere waiting.

I'm close to 5 years at my new job anyway so my contributions will be matched again soon. Although I agree with a previous poster who said that continuing your payments can be a good idea. If the teacher changes employers, contributes to the private plan and doesn't plan to stay at the new job long, then it just makes sense.

I'm glad my information was helpful.