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Paji eh Wong
Joined: 03 Jun 2003
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 Posted: Thu Jan 06, 2005 3:50 am Post subject: Pension. And I'm a dumbass. |
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Hi
I'm a Canadian citizen on the 11.5 month mark of my contract. I asked my employer how I'd get my pension back, and she said I wasn't paying into it(?!). And, by extension, neither are they. I did the math, and they're right, I haven't been paying into it. My pay stub just has a mass deduction on it, tax and health insurance. According to the NPP website the pension plan is mandatory for foriegners. Unfortunately I have this little clause in my contract:
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article III A3
The institiute shall deduct from the instructors salary and year-end bonus, the Korean income tax in accordance to Republic of Korea tax laws. All other tax responsiblities are the burden of the instructor. |
Yes I am a dumbass. Help me out anyway.
1) Which has precedent, the contract or the National Pension Act? Anyone had experience with this?
2) I have 8 more business days in country, then I'm returning for another contract in Korea elsewhere. Do I have to have this settled before I leave if I want my employers contribution?
3) My foriegn coworkers are in the same boat as me but have more time and resources. Can they force my employer to start contributing to the pension plan?
To cut out some of the inevitable, yes I used the search engine, yes I posted on EFL-law.org, yes I am going to the local pension office with a Korean friend, yes I should have read my contract more closely.
Thank you |
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Gollum
Joined: 04 Sep 2003
Location: Japan
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| Posted: Thu Jan 06, 2005 4:16 am Post subject: |
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Two things:
#1: My income tax, which was at maybe 3.5%, was about 40,000 won or some small amount like that. Yours is too, unless someone lies to you.
#2: Go to the pension office NOW and you might have a chance. Ask your employer first, but I will guarentee you they'll say no. Before you are finished. Ask your employer first, but I got on it at the 8 month mark. The school agreed to make it all retro for me, and I payed off my part in 4 big chunks.
Go to www.efl-law, find the Korea Forum, and post a question. I think you're still entitled to it if it's in your contract, however you will have to MOVE FAST and be ready to pay your own chunk into if of at least 1 million won, I think. |
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bellum99
Joined: 23 Jan 2003
Location: don't need to know
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| Posted: Thu Jan 06, 2005 7:56 pm Post subject: there is a teacher limit |
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| The school must have a minimun number of workers ( teachers) to force them to pay the pension. Small schools may not qualify. |
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Paji eh Wong
Joined: 03 Jun 2003
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| Posted: Thu Jan 06, 2005 8:32 pm Post subject: |
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My school has over 20 employees.
I know my school qualifies because I have a misleading clause in the contract saying they are not going to pay it.
I just wonder if that's legal or not. |
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turtlepi1
Joined: 15 Jun 2004
Location: Abu Dhabi, UAE
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| Posted: Thu Jan 06, 2005 9:26 pm Post subject: |
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| Paji eh Wong wrote: |
My school has over 20 employees.
I know my school qualifies because I have a misleading clause in the contract saying they are not going to pay it.
I just wonder if that's legal or not. |
Not only do they have to pay it, I was under the impression if you had national medical coverage you were "automatically" going to end up in the pension plan...(but maybe that isn't the case...) |
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prosodic
Joined: 21 Jun 2004
Location: ����
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| Posted: Thu Jan 06, 2005 9:55 pm Post subject: |
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| turtlepi1 wrote: |
| Paji eh Wong wrote: |
My school has over 20 employees.
I know my school qualifies because I have a misleading clause in the contract saying they are not going to pay it.
I just wonder if that's legal or not. |
Not only do they have to pay it, I was under the impression if you had national medical coverage you were "automatically" going to end up in the pension plan...(but maybe that isn't the case...) |
First, the OP said that he has a deduction for health insurance, but he didn't say that he has the national health insurance plan. One common way of avoiding pension is to subscribe everybody into a private health insurance plan.
Second, subscription into the national medical insurance plan does not "automatically" put you in the pension plan. Rather, it merely puts you on the pension plan's radar screen. The Health Insurance Corporation lets the Pension Corporation know that you exist. Then the Pension Corporation checks to see if you are already subscribed to them. If you aren't, they might (or might not) call your employer to see if there is any reason why you should not be subscribed. If your employer has adequate reasons for why you shouldn't be subscribed, then that's the end of it. |
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prosodic
Joined: 21 Jun 2004
Location: ����
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| Posted: Thu Jan 06, 2005 9:59 pm Post subject: |
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| How many hours a week do you work? The pension requirement kicks in at 18 hours a week. Anything less than that and there's no recourse. |
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turtlepi1
Joined: 15 Jun 2004
Location: Abu Dhabi, UAE
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| Posted: Thu Jan 06, 2005 10:04 pm Post subject: |
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| prosodic wrote: |
First, the OP said that he has a deduction for health insurance, but he didn't say that he has the national health insurance plan. One common way of avoiding pension is to subscribe everybody into a private health insurance plan.
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Fair enough about the private plan...
**I actually realized that later...I was confusing the National Medical Plan with the National Pension Plan when I posted...I was thinking hagwons couldn't opt out of national medical but it is the pension plan they can't (but I think universities can if they have a private pension plan--off topic)
| prosodic wrote: |
Second, subscription into the national medical insurance plan does not "automatically" put you in the pension plan. Rather, it merely puts you on the pension plan's radar screen. The Health Insurance Corporation lets the Pension Corporation know that you exist. Then the Pension Corporation checks to see if you are already subscribed to them. If you aren't, they might (or might not) call your employer to see if there is any reason why you should not be subscribed. If your employer has adequate reasons for why you shouldn't be subscribed, then that's the end of it. |
that's why I said "automatically" and not automatically....haven't had any personal experience with it but seems like as you pointed out...having one starts a query on the other....
And I expected Gord to be the one to jump in and "correct" me....  |
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Paji eh Wong
Joined: 03 Jun 2003
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| Posted: Fri Jan 07, 2005 3:30 am Post subject: |
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Thanks for the responses everyone.
| prosodic wrote: |
| How many hours a week do you work? The pension requirement kicks in at 18 hours a week. Anything less than that and there's no recourse. |
I'm teaching 30+ hours per week.
As for my health insurance, I have no idea which plan I'm on. I just have a mass deduction on my paystub and I've never had to use it.
I still see my issue as being precedence between the contract and the National Pension Act. Anyone have experience with this?
I guess the only source that matter in the end is the pension office. I'm off on Monday to hopefully get this cleared up. I'll post an update. |
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TheUrbanMyth
Joined: 28 Jan 2003
Location: Retired
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| Posted: Fri Jan 07, 2005 3:50 am Post subject: |
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| Paji eh Wong wrote: |
Thanks for the responses everyone.
| prosodic wrote: |
| How many hours a week do you work? The pension requirement kicks in at 18 hours a week. Anything less than that and there's no recourse. |
I'm teaching 30+ hours per week.
As for my health insurance, I have no idea which plan I'm on. I just have a mass deduction on my paystub and I've never had to use it.
I still see my issue as being precedence between the contract and the National Pension Act. Anyone have experience with this?
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It is the National Pension Act. That is part of the laws in Korea, and government laws and policy take precedence over ANY contract written by any hakwon. |
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bucheon bum
Joined: 16 Jan 2003
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| Posted: Fri Jan 07, 2005 6:23 pm Post subject: |
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| You know, I would have just kept quiet about it. I never paid a dime into either the National Health Care or Pension plans and had no problems. Then again, if the small business exception is true, then that would explain it for me. Both hogwons I worked at had less than 10 employees. |
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justagirl
Joined: 17 Jan 2003
Location: Cheonan/Portland
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| Posted: Sat Jan 08, 2005 6:44 am Post subject: |
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Also that bit about "All other tax responsiblities are the burden of the instructor" cannot mean pension. Pension isn't a tax. Neither is medical insurance. Those are deductions.
Definitely get on the ball. You don't want to miss out on this chunk of change. My husband and I have a total of 3 1/2 years of pension that was sent to us this week and it was over $5,000 USD.
Whoever would "not bother" for whatever reason is only benefitting their employer.
National Pension was not on our contracts. However, when they called the hakwon (I had the national health insurance), my boss had to start paying in. Of course no boss wants to pay an extra 4.5% per employee per month--especially the OP's with over 30 employees. |
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bucheon bum
Joined: 16 Jan 2003
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| Posted: Sun Jan 09, 2005 7:48 pm Post subject: |
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| how has it benefited the employer? The OP wrote the owner hasn't put in a dime. There is no money for the OP to get. It is a waste of time. The employer hasn't deducted money from the OP for his contribution either. |
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turtlepi1
Joined: 15 Jun 2004
Location: Abu Dhabi, UAE
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| Posted: Mon Jan 10, 2005 7:35 pm Post subject: |
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| bucheon bum wrote: |
how has it benefited the employer?
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Because they (the employer) saved the money they would have had to pay in matching contributions....
| bucheon bum wrote: |
The OP wrote the owner hasn't put in a dime. There is no money for the OP to get. It is a waste of time. The employer hasn't deducted money from the OP for his contribution either. |
The OP will have to "pay" the amount he owes....and after doing that he will get double back...(his + the employers share)
Seems like something worth following up on.... |
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gajackson1
Joined: 27 Jan 2003
Location: Casa Chil, Sungai Besar, Sultanate of Brunei
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| Posted: Tue Jan 11, 2005 12:54 am Post subject: |
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Based on a 1-year contract, that is 2 weeks salary - probably the equivalent of a plane ticket somewhere far, or a short vacation living large somewhere cheap in SEAM/I . . . I'd call that considerable!!!
Also, if people held their hak-wons to the fire about both pension AND Nat Med, it would be better for all of us - as individuals, and as a group.
I pull this analogy: Your employer says that they will deduct 100k/month to pay for all bills. Good! you think; this seems reasonable!
At your 11th month, you find out that, in actuality, your bills have been averaging around 55k/month.
How bothered would you be then?
Or to be charged 'rent' and find out that, in reality, your apartment has so much key money sunk in, that there IS no 'rent' between the building owner and your school???
Fair Warning
Glen |
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