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pocariboy73
Joined: 23 Jan 2003
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 Posted: Sun Aug 26, 2007 10:10 pm Post subject: "Lump-Sum" benefit not possible after 10yrs? |
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Is it true that after 10 years in Korea, Canadians cannot apply for the "Lump-Sum" benefit from the National Pension Plan, but instead must wait until they are of retirement age and gradually "get it back" in the form of monthly pension checks???
Thanks in advance
Last edited by pocariboy73 on Mon Aug 27, 2007 5:04 am; edited 1 time in total |
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marathontestdrive
Joined: 15 Apr 2007
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| Posted: Sun Aug 26, 2007 11:15 pm Post subject: |
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i heard something to this effect. i would get your refund before then.
maybe clear it out... then pay back into the pension program at a new job.. but we'll see if you get that new money in a lump sum.
maybe it will set back to zero lol. |
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pocariboy73
Joined: 23 Jan 2003
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| Posted: Sun Aug 26, 2007 11:27 pm Post subject: |
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I just phoned the Pension Office and was informed that as long as you are under 60 years of age, you can apply for the "Lump-Sum" benefit. He claims there is NO 10 year rule!
Last edited by pocariboy73 on Mon Aug 27, 2007 1:58 am; edited 1 time in total |
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schwa
Joined: 18 Jan 2003
Location: Yap
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| Posted: Mon Aug 27, 2007 12:25 am Post subject: |
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I brought that up when I read this on the www.servicecanada.gc.ca site (Consular Affairs page):
PENSION
When you leave Korea, you may be entitled to receive both your and your employer's contributions to Korea's National Pension Scheme if you :
are a Canadian or Korean citizen; and
have contributed to the Korean National Pension Scheme for less than 10 years.
The site seems pretty authoritative but I cant find corroboration anywhere else in the pension agreement documents they've posted there. I'm also reluctant to take a Korean bureaucrat's word as gospel.
Warrants a bit more digging I think. |
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the eye
Joined: 29 Jan 2004
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| Posted: Mon Aug 27, 2007 1:35 am Post subject: |
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Is there any accrued interest on our pension contributions?
If so, how much? |
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regicide
Joined: 01 Sep 2006
Location: United States
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| Posted: Mon Aug 27, 2007 4:44 pm Post subject: |
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| the eye wrote: |
Is there any accrued interest on our pension contributions?
If so, how much? |
Sorry , the answer is no because it is what is referred to as a defined benefit plan which means it will eventually pay a certain ( defined ) amount to you at retirement age.
They are not very common anymore and have been replace by a 401K type of plan (a defined contribution plan) where you would get interest and capital gains from your holdings.
Defined-Benefit Plan from Investopedia:
http://www.investopedia.com/terms/d/definedbenefitpensionplan.asp
An employer-sponsored retirement plan where employee benefits are sorted out based on a formula, using factors such as salary history and duration of employment. Investment risk and portfolio management are entirely under the control of the company. There are also restrictions on when and how you can withdraw these funds without penalties.
From US Department of Labor
http://www.dol.gov/dol/topic/retirement/typesofplans.htm
Also referred to as a 'qualified benefit plan' or 'non-qualified benefit plan', a defined benefit plan promises a specified monthly benefit at retirement. The plan may state this promised benefit as an exact dollar amount, such as $100 per month at retirement. Or, more commonly, it may calculate a benefit through a plan formula that considers such factors as salary and service � for example, 1 percent of average salary for the last 5 years of employment for every year of service with an employer. The benefits in most traditional defined benefit plans are protected, within certain limitations, by federal insurance provided through the Pension Benefit Guaranty Corporation (PBGC).
A defined contribution plan, on the other hand, does not promise a specific amount of benefits at retirement. In these plans, the employee or the employer (or both) contribute to the employee's individual account under the plan, sometimes at a set rate, such as 5 percent of earnings annually. These contributions generally are invested on the employee's behalf. The employee will ultimately receive the balance in their account, which is based on contributions plus or minus investment gains or losses. The value of the account will fluctuate due to the changes in the value of the investments. Examples of defined contribution plans include 401(k) plans, 403(b) plans, employee stock ownership plans, and profit-sharing plans.
This fund is different from many pension funds where payouts are somewhat dependent on the return of the invested funds. The payouts made to retiring employees participating in defined-benefit plans are determined by more personalized factors, like length of employment.
A tax-qualified benefit plan shares the same characteristics of a defined-benefit plan, but also provides the beneficiary of the plan with added tax-incentives. These tax incentives are not realized under non-qualified plans. |
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the eye
Joined: 29 Jan 2004
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| Posted: Tue Aug 28, 2007 5:32 pm Post subject: |
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Balls.
Thanks for the info. That was pretty comprehensive. |
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elliemk
Joined: 01 Jul 2007
Location: Sparkling Korea!
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| Posted: Sat Sep 01, 2007 4:17 am Post subject: |
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| What about if you're over 60 and from the U.S.? Thanks. |
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marlow
Joined: 06 Feb 2005
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| Posted: Tue Sep 04, 2007 7:48 pm Post subject: |
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So, anyone leave Korea after being here over ten years? What happened?
I would like to know, because getting 25,000 to 35,000 dollars in my bank account versus waiting till I'm 65 to get small value checks (or possibly get small value checks) from the Korean government are two very different scenarios, and I rather like the first one.
I'll probably leave after 11 or 12 years, and I'm at year six now. Maybe I should leave and come back?? |
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marlow
Joined: 06 Feb 2005
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| Posted: Wed Sep 05, 2007 4:58 pm Post subject: |
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bump
10 year vets? |
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schwa
Joined: 18 Jan 2003
Location: Yap
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| Posted: Wed Sep 05, 2007 5:18 pm Post subject: |
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As far as Canadians go, it hasnt arisen as an issue yet.
The agreement came into force in 1999 & didnt allow for back-dating claims. |
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marlow
Joined: 06 Feb 2005
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| Posted: Wed Sep 05, 2007 7:24 pm Post subject: |
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| schwa wrote: |
As far as Canadians go, it hasnt arisen as an issue yet.
The agreement came into force in 1999 & didnt allow for back-dating claims. |
Shit. Guess we'll find out in 2009.
I really want a lump-sum. |
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schwa
Joined: 18 Jan 2003
Location: Yap
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| Posted: Thu Sep 06, 2007 12:53 am Post subject: |
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So I've emailed the embassy:
I am a Canadian citizen working long-term in Korea but I don't know if that situation will be permanent. My question concerns my Korean pension contributions. On the servicecanada website I read the following:
PENSION
When you leave Korea, you may be entitled to receive both your and your employer's contributions to Korea's National Pension Scheme if you :
are a Canadian or Korean citizen; and
have contributed to the Korean National Pension Scheme for less than 10 years.
Does this mean that if I pay into the pension scheme for more than 10 years I forfeit the option to claim a lump-sum payout? I can't see any reference to this in the pension agreement documents. Korean pension officials don't seem to know anything about this limitation.
Can you clarify for me please? This could have a major fiscal impact on me & others I know.
Thanks for your attention.
sincerely,
I'll let you know what I hear back. |
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marlow
Joined: 06 Feb 2005
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| Posted: Thu Sep 06, 2007 5:12 pm Post subject: |
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| schwa, awesome that you're doing something. It's funny/sad that I never thought of doing anything except posting on Dave's. |
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schwa
Joined: 18 Jan 2003
Location: Yap
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| Posted: Mon Sep 10, 2007 12:01 am Post subject: |
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Heres the response I got from the Canadian embassy today:
Thank you for the inquiry.
If you contribute to Korean Pension Plan for more than 10 years, you cannot claim a lump-sum payout, but it will be paid to you as a pension.
For more questions, you may wish to refer to the pension office website (www.nps.or.kr). You can sent it an e-mail inquiry, too.
Hope this will be of assistance.
Consular services/services consulaires |
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