Korean Job Discussion Forums

tausha12 · Joined: 12 Jan 2012

What exactly is a pension? How does it work?

I had the opportunity at my last job to enroll in the pension but I declined, I think. It's been over two years so I honestly can't remember.

Why does it matter if your school elects not to do a pension?

iggyb · Joined: 29 Oct 2003

You pay 4.5% of you salary into it - and - the employer pays 4.5%.

I don't remember which countries have the deal with Korea to get the refund, but the US does.

I applied last week. I get a little over 8 million Won for about 2 1/2 years work. If you don't sign up for it, your employer is costing you a significant amount of money (and saving it for himself).

Skippy · Joined: 18 Jan 2003 Location: Daejeon

Plus if you do not sign. The employer can save on paying for public health insurance. Hope you do not get hit by a taxi.

Also your boss could be setting you up for a big bill in the future. If the pension office finds out your have been working and not contributing it may ask for the year or more of missed payments.

tausha12 · Joined: 12 Jan 2012

okay, so let's say I didn't sign up for the pension plan at my last school 7/2009-10/2010, and I did sign up in April 2012 at my new school, would I be expected to pay the pension from July 2009 to October 2010? Or could I start fresh?

I have worked at two Korean hagwons and didn't have pension at either of them! Now that I understand what it is I'd want to sign up for it at the new school but I don't want to have to back pay, you know?

wishfullthinkng · Joined: 05 Mar 2010

yikes... perhaps you should have read up about this before you declined it for two years straight? pension is something you definitely want unless you are planning on pulling runners every other month.

tausha12 · Joined: 12 Jan 2012

Let me clarify the first school I worked at didn't offer pension or medical insurance.

The second school offered the pension but I didn't take advantage of it because I had no idea what it was. I don't see the problem! I mean it's our money, it's not like an extra tax or something we have to pay. From what I can understand we are declining losing more of our pay each month and our employer doesn't have to match it, which saves them money.

so my question is Since I worked in Korea for two years without pension, can I take advantage of it at my new job without having to back pay?

Thanks for your time!

byrddogs · Joined: 19 Jun 2009 Location: Shanghai

http://english.nps.or.kr/jsppage/english/main.jsp

Check out this site and possibly call them if you can't find your answer.

Skippy · Joined: 18 Jan 2003 Location: Daejeon

I have done contract without pension. But those where generally come and go. I had left the country in between. But if you transfer or extend I could see pension asking for money back.

Still in the end, the best place to ask is the pension office.

YTMND · Joined: 16 Jan 2012 Location: You're the man now dog!!

da_moler · Joined: 11 Nov 2006

nate1983 · Joined: 30 Mar 2008

r122925 · Joined: 02 Jun 2011

TheUrbanMyth · Joined: 28 Jan 2003 Location: Retired

iggyb · Joined: 29 Oct 2003

I think the guy was saying that he's fine with losing his previous employer's 4.5% as long as the gov doesn't come looking for 2 year's worth of pension money if he opts to pay into it at his new school.

I did a quick check to see if pension is mandatory, because I vaguely think I remember reading in the labor law there are exceptions to pension and severance - but didn't think they extended to a business like a hakwon and certainly not public schools. Here is a mention I found: