Korean Job Discussion Forums

[Qinella]

I had a talk with my boss yesterday, day before my first payday, and when I asked him about pension, his speech faltered signifcantly. Um, er, pension? I don't think you're supposed to get that...

Now, I'm pretty sure it's in my contract, but I don't have a copy of it handy to double-check. He told me that it's not normal at all for hagwons to pay pension. I was confused by that, because reading posts here at Dave's, I was under the impression that pension is very normal, and should be expected.

Then, he mentioned something about how the law requires all companies to pay pension, so I asked why he doesn't, and he said it's because he doesn't have more than five employees, yadda yadda, boggling double speak.

Shocked that this conversation was even happening, as he's been terrific so far, I gave up the roundabout approach and told him that, well, even if it's not required, pension is something that good companies do to express their appreciation for their employees' hard work.

The conversation proceeded from there with private details about the business I don't feel I should disclose, but I was left wondering if what he said is true about normalcy.

I should mention that last year, at another job, I didn't get pension because I was a noob and didn't have any idea what that even was until about 9 months in. Also, I've read some people say you can't qualify if you're from certain countries. I'm from the US, and I'm fairly certain I should quailfy.

Please vote and let me know if you receive pension so that I may see what kind of legs I have to stand on with this issue, and if I need to request a copy of my contract.

Thanks,
Q.

[TheUrbanMyth]

Your boss is cheating you. Either intentionally or he is confused about what the laws are. That thing about the five employees no longer applies. Pension has become mandatory across the board.

Yes if you are from the U.S you definitely want to collect pension. See the thing is that you put in 4.5% of your monthly pay and the boss has to MATCH it with another 4.5%. So that's (depending on your salary) a little over an extra million won at the end of the year that you can get in a lump sum.

It is true that it is not normal for many hakwons to pay pension (unless they are in a big chain). But it is illegal. Most of them just keep quiet about it and hope the foreign teacher doesn't find out.

BTW here's a good way to find out if your boss is simply confused or honest. Tell him you are going to visit the pension office and find out for yourself.

[BigBuds]

This should help end any questions about pension for most people. It's straight from the Korean Pension Office:


National Pension Scheme and foreigners

1. Foreigners and Coverage

At the time of the introduction of the Scheme, foreigners were not mandatorily covered. Only foreigners working in a workplace covered under the Scheme could be covered as an Workplace based Insured Person by submitting an application.

Foreigners working at the workplace with more than 5 full-time employees were included in the mandatory coverage in August 1995 and those working at the workplace with less than 5 employees including self-employed foreigners were also included in the mandatory coverage in April 1999. Accordingly, foreigners aged from 18 to less than 60 who reside in Korea must be, in principle, covered under the Scheme. But foreigners falling under any of the following items are excluded from the coverage.

○ Those whose country does not mandatorily cover Korean citizens under its pension scheme.
○ Foreigners who are not registered under the Immigration Act, or to whom the forced deportation order has been issued under the same Act, or who are staying in Korea without being permitted to extend their term of stay.
○ Among the registered foreigners under Immigration Act, those whose stay status falls under any of the followings; culture & art, studying abroad, industrial training, general training, religion, visiting & living together and others.
○ People excluded from the mandatory coverage of National Pension Scheme, by the social security agreement.

2. Foreigners and payment of Lump-sum Refund

Foreign Insured Persons under the National Pension Scheme are equally treated as the national Insured Persons. For example, there is no discrimination in terms of the benefit amount and remitting benefit abroad, etc. But there is a certain distinction in regarding Lump-sum Refund. In principle, Lump-sum Refund is not paid to foreigners leaving Korea after having been covered under the Scheme. But, in the case of foreigners falling under any of the following items, Lump-sum Refund is paid.

○ People whose country grants Koreans a benefit corresponding to Lump-sum Refund under the National Pension Scheme.
○ People whose country concludes a social security agreement with Korea to secure benefit right by totalling Insured period in each country.

[I_Am_Wrong]

You got your job through worknplay right? You should call up Ann and tell her what is happening and have them deal with your boss. They tend to be pretty good when it comes to after service. If you still aren't getting the pension then just go to your local office with the name and number of your employer and apply for the pension on behalf of yourself. Once you start it up they will enforce it with your employer. You can also do this with previous places of employment that didn't pay into the pension scheme; however, you will have to back pay your share.

[Mr. Pink]

Shouldn't your poll be something along the lines of "do you pay for pension"

Obviously no one is "getting" it, as that means you have lived here forever and paid into the system and now you are retired.

[sadsac]

Aussies don't have a reciprocal agreement with Korea, so why waste my money and my bosses money.

[semphoon]

What does it mean for Brits?

Do we pay? Do we get it back or do we just get to draw National pension when we go back to the UK?

[Qinella]

Yeah, I got my job through worknplay. I'm hoping to avoid creating a conflagaration with the situation, though. If it's something I really felt I deserve, I could just insist upon it and probably get it.

Should I look at my contract, then? If it's not in the contract, should I just give up?

I noticed over 70 people have seen this thread, but only about 10 have voted. Please vote, even if you don't comment. I need to get some sort of idea how accurate my boss's statement is.


Regarding Mr. Pink's persnickety correction: go shoot yourself and do us all a favor. Is a pension plan being made available to me? Am I getting pension? Any idiot with even the most vague idea of CONTEXT would understand what I'm saying. No one thinks you're smart for trying to wage a semantic battle.

Q.

[jacl]

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[Mr. Pink]

[Qinella]

[RachaelRoo]

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[denverdeath]

Q, yes, when you leave the country, you should be getting what you and your employer pay into the plan. You and your place should've been paying into it last year. You and your current boss should be paying into it this year. As you just started a new contract, it's better to clear up any confusion sooner than later. It's more than a half-month's salary that you're entitled to receive from your boss' contributions along with your own half. It's your choice whether you want to address the issue or not. But, why not? You said your boss is a reasonable fellow; just talk to him about it first. Show him the pension web-site and tell him that you heard about it from there and see how he responds. My first year here, I didn't know about it either...I don't even know if it was req'd then('97). The following two contracts, I received it cash in hand before leaving. Three places ago, me and my American co-worker foolishly opted out thinking it was better to have the extra money at the end of each month. One place(hakwon)I worked for for three years and I got it for all of those years. Last year, I was at a middle school and received it for there as well. Yes, you should be receiving what you and your boss pay into it for hakwons, public schools, and public unis. However, you can't receive what hasn't been paid. If your current place doesn't even have pension mentioned in the contract you may need to access whether they're doing anything else that's shady. Could just be an oversight, I guess...