Korean Job Discussion Forums

gjwilliams1980 · Joined: 06 Apr 2010 Location: Manchester, England

I need some advice on the Korean NPS

I work in a private Hagwon on an E-2 visa

I have been in Korea for 2 months and have received a letter saying to enrol in the pension scheme.

English nationals do not receive a lump sum on contract completion like US and Canada but pay the contribution in any case. This is then paid to your UK pension scheme (NI) I presume as we have a scheme set up between Korean and UK.

Basically I don't want to pay and I'm pretty sure my school would prefer not to pay their contribution. I'd like my money to be paid to me now and not when I'm 65/70! I will earn enough N.I. in U.K. to do that anyway.

So how do I avoid having to pay it!

Thanks in advance for your help

Hotwire · Joined: 29 Aug 2010 Location: Multiverse

Even though it is illegal, many directors ignore national pension.

You just have too sell it to your boss corectly.

Eg - 'We both pay 40,000 each a month, 480,000 a year into it and no one ever sees it back. It's money down a black hole. If you want I'd be happy not to pay it as British people don't get it back, so it doesn't benefit me and if you don't pay it, it saves you 50% of whatever the monthly paymentr is. What do you think?'

I would also during free time pop into the pension office and check if your boss is actually paying it, if they claim they are. Some, knowing as a Brit you wont have need to try and claim it, will deduct it from your paycheck and tell you they are paying it. You lose 90,000 or so a motnh and they save the same. then if you find out from the PensionOffice they are not paying it you can pursuade them into giving you half of the non paid pension each month OR a lump sum on top of your severance. Otherwise you report them and they get in trouble.

eamo · Joined: 08 Mar 2003 Location: Shepherd's Bush, 1964.

You can't.

Everyone has to pay it up front and then try to claim it back later if they want. Everybody.

Oh, and BTW, I don't think it's actually transferred to your N.I. in the UK....it stays here in Korea. Even after you leave.

I've been following this for 10 years and Ive never heard of any Brit getting any of their pension money yet. I know.....it's stupid.....I've paid in around 15,000,000 over the years. I get a statement every year to show how it has increased.

Hotwire · Joined: 29 Aug 2010 Location: Multiverse

Eamo is correct. Once you are of pensionable age for a Korean you can come to Korea and collect on your pension.

See ya'll here when we are 65!

eamo · Joined: 08 Mar 2003 Location: Shepherd's Bush, 1964.

dumpring · Joined: 06 Apr 2010 Location: Auckland, NZ

Any idea what would happen if you're working here on a UK passport but never really lived there? I've never signed up to any UK pension plan, just opted out of the New Zealand one where i'm a permanent resident.

Hotwire · Joined: 29 Aug 2010 Location: Multiverse

aske · Joined: 25 Aug 2010

If you are employed as an independent contractor the NPS is not a requirement. This also means you must pay 3.3% income taxes.

TheUrbanMyth · Joined: 28 Jan 2003 Location: Retired

Young FRANKenstein · Posted: Thu Sep 09, 2010 6:23 am Post subject:

adamwatch · Joined: 10 Aug 2010

I got this e mail from the British Pension people. It seems to suggest we Brits are getting a very raw deal here in little America!

Dear Mr ****

Thank you for your e-mail dated 23 December 2009, regarding contributions paid into the Korean National Insurance scheme.

I can confirm that there is no reciprocal agreement between the United Kingdom and Korea. Because of this, any insurance paid into the Korean National Insurance scheme cannot be transferred to your UK National Insurance records to enhance your UK State Pension.

I regret a more favourable reply cannot be given.

Yours sincerely

Brian Tilmouth