Korean Job Discussion Forums

[legalquestions]

I work at a private university, so I am covered by the Korea Private School Teachers Fund Pension, not by the National Pension Fund, which covers public school teachers (probably most of you).

The private school pension fund requires schools to deduct 8.5% of my monthly salary and pay it into the pension fund. My school must match this amount after five years of employment here (assuming the school doesn't cut me loose before then in order to get out of paying this matching amount).

My question is this: should my school calculate my 8.5% monthly pension contribution based on my actual salary, ie, monthly salary, overtime pay, market value of the housing which they provide to me (technically part of my overall pay package), bonuses paid to me for publications, reimbursement for flight to Korea, etc. ?

Obviously it is to my advantage if they include all of these things in the 8.5% calculation as this would ultimately result in a larger payout to me after five years of employment here.

Anybody know?

[Otherside]

In the public school system, those additional things won't be in the calculation for pension. Just base salary and that's it.

I'm not sure of the law regarding this, but here's something to think about. If you get all that stuff (airfare, bonuses, overtime, housing - which could easily equal 800K won/month) added to the calculation for pension, it would indeed increase your payout at the end (5 years), HOWEVER, by deducting pension, wouldn't they also want to deduct tax and healthcare. Additionally, this extra income could very likely push you into a higher tax bracket. So while you may get yourself a nice 8.5% payday after 5 years, you will give much of that back in taxes. Not to mention, there's no guarenteee you'll last the 5 years required in order to claim.

I'm pretty sure you aren't on a 5 year contract, so getting out of paying your pension will be as simple as not renewing your contract, no shady business required. And to save themselves the equivalent of 4 months of your salary it would be an almost no-brainer for the university to let you go after 4 years. Unless you are the single greatest teacher ever.

[Toronto]

legalquestions

PM me (+ look at my past postings).

I have quite a bit of information pertaining to your issues. I am asking the same questions right now.

[bobbybigfoot]

Don't worry about it. You'll never see your school's contribution because you'll be out of job sometime before five years is up.

This law was written to screw over the waygookin. Essentially, you don't have a pension.

[Toronto]

bobbybigfoot

You are quite wrong.