Korean Job Discussion Forums

[Mikejelai]

I was here for 3 years in the late 1990's and all university teachers were then covered by the national pension (didn't matter if you were at a private university or a national university. Universities were required to comply with this national pension law, by the way.

Your monthly paycheck deductions (for pension) were matched won for won, ie 100% by the university. For example, if your monthly salary had a 200, 000 deduction for your pension, then the university would add 200, 000 of their money to that. So at the end of the year you would (in my example) receive your monthly contributions (2,400,000) plus their contributions (2,400,000) PLUS interest on all of it. In addition, as a reward for completing the 12 month contract you would receive a one month bonus (equal to one months salary(. So in essence you got paid 13 months salary for 12 months work plus you got matching funds for all of your monthly pension contributions (plus interest, as mentioned).

I left Korea in 2000 and returned a few years ago. I have learned that now the private universities no longer have to pay the matching pension amount, nor do they have to pay the one month bonus unless you have more than 5 years at that particular university. Unfortunately, most teachers are not allowed to stay more than 5 years nowadays, thereby effectively causing the pension not to exist in reality.

My question(s): When did this private school teachers pension go into law? It was some time after 2000 (when I left) but before 2007 (when I returned). Anyone know the date? Also, why was the law changed? Was it done simply to give monetary relief to the private school (university) owners association, at the expense of the teachers?

[ttompatz]

I suspect the changes occurred in 2001-2002 (I don't have the old copies of the act handy) to give you the exact date of the change but it DID occur prior to the end of 2002.

It is currently covered in the "Employee Retirement Benefit Security Act" and can be found on the MOEL home page. http://www.moel.go.kr/

.

[Mikejelai]

Thanks; I'm trying to put together some justification for the change, but so far the only conclusion I can make is that it was done to screw teachers and enrich the owners...........

[fishy]

Are you talking about the Korean Teacher's Pension Fund or a true private pension fund run by an individual university? For the former, the university does contribute from day 1, but the actuaries (those who calculate who can take out what money and when without destroying the fund) have calculated that the 5 year mark is when you can take out the matching funds along with your original money that you put into the plan. This is how pension plans work, in general. Everyone adds to the pot, and the rules favor long term workers. I don't know if a university's renewal limit has anything to do with the fund. My private university is super-big, and in the last 4 years, we've been told 5 years max, then 2, then unlimited, and now 8 years. My other uni said unlimited, then 6 years max. Your years counted carry over from one university to another as long as they are both in the fund. I know this because I called the fund and asked them. I've also sat through a long, boring presentation by the KTPF itself where they explained all of this.

Disclaimer: this is Korea, and all of this could have changed since I last checked in 2009.

Anyhoo, that's what I know about the KTPF. If you mean a truly private pension fund, I don't know about that.

[Mikejelai]

Fishy,

I went and talked to the people at KTPF and the lady told me that the money did not transfer from uni to uni. That is what concerned me, to say the least.

[fishy]

Well crap.

That's totally different than the answer I got a year and a half ago. Guess I better keep renewing my contract then...

[Mr. Peabody]

[Stan Rogers]

[Mikejelai]

Of course you can transfer your pension money (the total of all of your monthly contributions) when you go to another university, after all it is your money!

But what I am talking about here is the matching amount that the university has to pay toward your pension. I was told that the employer doesn't have to pay the 100% matching money (ie, their contribution to your pension) unless you somehow manage to stay longer than 5 years at that particular university.

In other words, you will never vest in the pension unless you stay at one place longer than five years, thereby effectively not having any pension (just a refund of your monthly pension contributions).

[hubbahubba]

[Mr. Peabody]

[zappadelta]

My understanding of this is that you have to be in the same private pension system for 5 years before the matching begins, not necessarily be at the same university for 5 years.

In my case, I was at one university for 3 years, and am coming up on 2 years at my current university. They both pay into the same private pension system. I am hoping the matching will begin at the end of this year. Am I wrong?

[Mr. Peabody]

[The Cosmic Hum]

[Mr. Peabody]