Korean Job Discussion Forums

[jackson7]

I have read the other threads on this topic, but couldn't get the answer straight. I saw that you have to be contributing for 5 years before your employer matches your contributions.

Is this 5 years at the same job, or 5 years in the system, at which time past employers contribute all at once?

That's all. Thanks.

[jackson7]

Bump. Just one. Thanks.

[poet13]

In the national scheme (there are private ones), pension is matched from day 1. If they're not matching and talking nonsense, call the pension office and find out waht you can do.

[jackson7]

Oops. I should have been more clear. I'm particularly interested in the national teacher's pension that many unis are involved in.

[Hyeon Een]

[legalquestions]

I've got your answer. When I worked here in the 1990's ALL legal esl teachers were covered by the national pension plan (just as all foreign public school esl teachers, including national universities are even today).

Thus, each month your pension contribution from your paycheck was matched by your employer (won for won and with interest) when you left, regardless of how long you stayed. AND, if you finished the contract you would receive one months salary free (for each year you had worked) as a contract completion bonus.

Keep in mind that this system applied to ALL legal esl teachers here, but only teachers from certain countries qualified (countries which had similar agreements with the Korean government). Americans qualified, and I received over 20,000,000 won when I left after completing 3 years at a private university here.

I came back to Korea last year, and now the law has changed in this regard. If you work for a public school OR one of the handfull of public universities, the above rules still apply(and you are lucky!).

If, on the other hand, you work for one of the innumerable hagwons or private universities then you are screwed. This is essentially because the hagwon owners association and the private university owners have conspired with the national assembly ($$$$$$$) to change the law so that they (the owners) no longer have to match your monthly pension contribution, nor do they have to pay the contract completion bonus.

Think of the money they save by not having to contribute to your pension! And, to add insult to injury, they still force you to pay into the Korean private teachers pension fund every month and use this (your) money to fund the pensions of the Korean teachers/professors! Yes, you get your monthly contributions back (probably) when you leave Korea, but only after these monthly contributions have been used to make money for them.

The way they have written this new KPTF law makes it virtually impossible for you to qualify for the matching funds and completion bonus from your private school employer. This is because the new law requires that you work for MORE THAN five years for THAT employer (ie, not cumulative over different employers) before he has to match your monthly pension contributions OR pay you the contract completion bonus.

When this new law was passed, many long time teachers were let go (presumably they got the matching contributions and the completion bonus money), while a few others were allowed to stay (and should get the matching contributions and completion bonus).

However, when the new law was instituted most (all?) private school employers began to limit their new teachers to a maximum of 3 (in some cases 4) years. When questioned about this they say it is because they wish to keep "fresh, energetic" teachers in the classrooms. Fair enough, but why shouldn't this apply to the Korean teachers also? I guess it is OK if their Korean teachers are no longer fresh and energetic?!??!!

So what can we do to get around this apparent collusion between the psrivate school owners and the national assembly and have our pension rights restored? I suspect the only thing would be to raise a huge amount of money (ain't gonna happen) and out bid the private school owners associations (ie, contribute to to the national assembly). Money talks!

Anyway, that is my two cents worth. I will soon be completing yet another three year contract here and I know I won't be renewed (no foreigners are renewed beyond 3 years at my university any longer). And I'll be leaving Korea about $25,000 poorer than I left it in the late 1990's, before this new private teachers pension fund law was passed.


I wasn't aware when I returned to Korea almost 3 years ago that the law had changed in this regard (to our detriment). I don't think I would have returned had I known.

I challenge anyone to give another valid reason why the pension law was changed. How would the Korean workers react if they were suddenly told that they could qualify for their retirement pension (and completion bonus) only if they stayed for more than 5 years at their employer, and at the same time their employers told them that they could not staythere for more than 3 years?

The private school owners and the national assembly should be ashamed of themselves. We deserve better than this.

[jackson7]

Can anyone point me to the information that spells out this 5-year rule? My employer and I are working out a clause in my contract that will assure me a large chunk of that money if in fact they don't have to contribute (I work at a uni that has so far been pretty good to me, so I'm not worried about being scammed...once it's in writing that is). Any help is appreciated. Again, this is regarding the NATIONAL TEACHERS PENSION FUND.

[Unposter]

Talk to the accounting department at the university you work for or get someone to do so. It is their job to know accounting and pension law. If they do not know whether they match your payments or not you are in bigger trouble than you thought.

I doubt there is a law that says they can't match. It is more like they don't have to match but again those in the accounting office should know or be able to find out.