Korean Job Discussion Forums

[azjen]

Here's one that threw me off balance. The head of the school came to me and explained that many Korean-Americans and Korean-Canadians have had difficulty in getting their pensions back once they return to the US or Canada. She wants to set up a fund through the school that we pay our pensions to, once we have completed our one year contract she will refund the pension. This is to help ensure that we don't leave before the 1 year contract is up.

The way I see it, signing up for the pension enables you to sign up for health insurance. The school originally wasn't paying the pension until the two teachers demanded health insurance. Once they signed them up, they had to go on and pay the pension.

I am just bothered that yet again, the school wants to remove more money from my paycheck to ensure that I don't bail like the two before me. Quite honestly, I came here to make money and I'm not. I don't trust these people and I am extremely tired of the hidden costs.

Is this legal to set up a "school pension plan". I have to question how honest these guys are.

[justagirl]

I see no reason why Korean-Americans/Canadians would have a harder time getting their pension back than any other ethnicity American/Canadian. Pension has nothing to do with ethnicity at all--it's your nationality that matters. It doesn't make sense that your boss would bring that up.

On the other hand, the pension is totally on the up and up. There is a national pension scheme (use the search function to find more info).

Basically, you pay .045% of your paycheck and your boss has to match it. So .09% is paid monthly into the pension. When you leave, you get all of it back--your half you put in, and the half the school put in.

This is a legal matter--you school is not being "nice" or anything of the sort. They are required by law to pay pension for you, if they have more than 5 full-time employees.

From all I've read and can figure out, it doesn't matter if you finish your year contract. That money is yours no matter when you leave Korea. You just go to the pension office, show them your 1-way ticket home and fill out the forms to have the money transferred to a bank account back home.

It really is a good deal. If you get a 1-month bonus after your year contract, plus your pension money....wow!

Here's how it looks for me: 1,800,000 (monthly pay)
1,800,000 (1-year bonus)
1,944,000 (pension payback)
total:5,544,000 in that last month

Granted, half of that 1,944,000 was my money to begin with. Even still, a great way to leave the country!

[J.B. Clamence]

[justagirl]

Maybe I misunderstood.

The pension is paid through the school to the National Pension Office.

But it's not paid TO the school. Sorry if I confused.

[prosodic]

[Real Reality]

Foreigners Experience Difficulties in Living in Korea
Overall living conditions, including education, housing, medical care, transportation, immigration, and access to the Internet are pointed to as inconveniences. Not only inconveniences caused by different systems and customs in Korea, but also special discriminating practices, such as the practice of submitting two years of monthly rent in advance like a deposit, which is required of foreigners just because they are foreigners, are ubiquitous.
http://english.donga.com/srv/service.php3?biid=2004070522448

Rotten to the Core?
Transparency International's "Corruption Perceptions Index 2003" lists Korea 10 places lower than what it was last year, meaning the country ranked 50th. The reality is that everything from the central government to regional ones, and the private sector, such as between corporate purchasing and subcontractors, are involved. And the food chain of corruption goes on and on.
http://english.chosun.com/w21data/html/news/200310/200310080034.html

For Housing Rentals, Foreigners Easy Victims
http://times.hankooki.com/lpage/nation/200308/kt2003082818233111970.htm

[canukteacher]

She is trying to cheat you. Remember she has to pay her portion as well. That aside............it is ILLEGAL for her to try and circumvent the National Pension scheme. If you agree to this I would bet all the Won in the world that you will never see one won of this money.

CT

[justagirl]

All you would have to do is contact the pension office to make sure she is paying into it.

[azjen]

As of right now, not a won is being taken out for my pension fund. I've been here for 3 months and she came to me yesterday with her new scheme for our pension payments. I knew that pension had to be paid to the government and not to my school. This was her little option to circumvent the government pension fund.

I know that I am getting screwed once she takes the monies out of my paycheck. Everything here seems to be a scheme for the school to make even more money while giving us even less in return.

[prairieboy]

Your school doesn't need to enroll you in the National pension plan and she's probably banking on you not knowing this.

You have to pay your portion regardless, so if she hasn't enrolled you with the NPC or a private pension plan (I think that is allowed but it must meet certain requirements, such as those administered by universities) then simply go to your gu office on the day that NPC sends someone out.

To get more info call 1355 from anywhere in Korea. This is a korean speaker number for the NPC but if you have a Korean friend, then they can ask where you can go to enroll and what days and times the NPC is at your gu office.

Cheers and goodluck.

[justagirl]

[prairieboy]

Maybe I wasn't clear. But I did mention it in the paragraph following the line you quoted 'jag'. The op must pay his portion of the pension regardless but he can also fill out the application himself(herself) without the school's assistance/interference. NPC will bill him or the school, whichever the OP chooses. It will be for the full amount (8% at the moment and will be 9% as of next July), it's upto the school to provide proof that there are less than 5 full-time employees to get out of paying a matching contribution.

I know because this is what I did at my last school when I was getting the runaround on pension.

Cheers

[justagirl]

I see--good info to share.