Korean Job Discussion Forums

is so delicious · Joined: 28 Apr 2009

My after school program is actually giving me the option of accepting pension/insurance or not.

I don't need insurance. I haven't had to go to the hospital since I was four, and health care is ridiculously cheap anyway.

However... not sure about the pension. I was here for a year already, and it was pretty nice to get a big sum when I left after my contract was over. My recruiter is a little hazy about how much pension/insurance actually costs per month.

But I guess what I'm asking is: how does it work? I get pension and insurance taken out of my monthly salary, then I get that exact amount added up (the pension part of it, not the insurance, I'd imagine) at the end of my contract? So it's basically the same amount of money??

Anyone have any thoughts on this?

cruisemonkey · Posted: Fri May 15, 2009 5:58 pm Post subject:

I think you should give me 4.5% of your salary. I'll match it and invest. When you leave K-land, contact the NPS for your lump sum refund... and take your lumps. Rolling Eyes

CentralCali · Joined: 17 May 2007

You don't need insurance? Oh, man, thanks for the laugh! How "ridiculously cheap" do you think all of the surgery is going to be if you're involved in an accident?

is so delicious · Joined: 28 Apr 2009

I know you're mocking me... but could you tell me why? I don't know much about the tax system here. Is there any difference between getting my pension paid month by month and getting it all in one lump sum when I leave? What am I missing here that's making you roll your eyes?

I admit I know next to nothing about these adult matters...

cruisemonkey · Posted: Fri May 15, 2009 6:14 pm Post subject:

Kikomom · Posted: Fri May 15, 2009 6:16 pm Post subject:

By not accepting the pension, you're letting your employer off the hook for contributing the matching share. When you claim your pension when you leave, you collect both shares--yours and theirs.

Is that correct?

is so delicious · Joined: 28 Apr 2009

Who is (whose) sock are you? What does that even mean?

Anyway, anyone have any actual advice?

is so delicious · Joined: 28 Apr 2009

Ah... I see. Right, the pension is 50/50. Forgot about that. Thanks, Kikomom

Son Deureo! · Joined: 30 Apr 2003

When you pay into the pension system, you pay 4.5% of your salary, your boss matches it, and when you're ready to leave Korea you can collect all of it, including what your boss pays. In other words, if you opt in, your boss is required to give you about an extra million won over the course of the year. So yeah, you want pension.

As for health insurance, you'd have to pay about W40,000 a month. It's true that routine medical care here is pretty cheap without insurance, but refusing to pay $40 bucks a month for insurance to treat you in case you get hit by a delivery moped, get a horrible case of food poisoning, or any of the other multitude of things that could happen to you is just plain foolish.

Pay into pension and medical. One will make you money, the other will most likely save you money and possibly save your life.

cruisemonkey · Posted: Fri May 15, 2009 7:05 pm Post subject:

Ok... I'm serious now.

With regard to pension -
You are obviously from a country that has a reciprocal agreement with Korea and are eligible for a lump sum pension refund (you've collected before).

The combined facts you are working in an 'after school' program and your employer is 'giving you the option' (there's legally no option) make it evident your employer is less than honest. Therefore, just because you are told/see pension deductions from your pay, it does not mean the employer has actually matched the funds and given the money to the NPS. In fact, it's highy unlikely.

With regard to insurance -
If the employer has not registered you with the NPS, he will not register you for NHI (despite the premiums you 'appear' to be paying).

The sponsor of your visa and your employer should be one and the same. If not, you are working illegally; and are probably in for a few surprises.

busanliving · Joined: 29 Apr 2009

You don't need health insurance? How stupid can you be? I am sory, but who is going to pay when you get hit by a car, are involved in a fire, develop some serious medical illnes you know nothing about? Good luck

ChinaBoy · Joined: 17 Feb 2007

This OP is going to get ripped off left and right by his employer.

WendyRose · Joined: 10 Dec 2008 Location: hanam-si, seoul

My advice:

Contribute to the pension.
Contribute to the health insurance.

Both will be worth it in the end. And even if you never require a hospital visit, at least you can rest easy.

VanIslander · Posted: Sat May 16, 2009 3:14 am Post subject:

this spring an ESL teacher in Korea (a very good bud of mine for years) broke his leg and since he didn't get medical insurance was expected to pay 5 million won to have a metal pin put in to straighten the break; instead, he went back to Canada and had the surgery done there for free (despite being overseas for a decade he just had to sign a piece of paper with the provincial ministry saying he intends to be a resident of the province once again, and all medical bills were then covered).

Not everyone has such comfy medical coverage back home to fall back on.

And not all surgeries can wait until one flies back home.

Get the medical insurance. Or roll the dice.

Kikomom · Posted: Sat May 16, 2009 4:43 am Post subject: