Pension

Eligibility for Korean National Pension differs according to your home nation's agreements with South Korea. South Africa does not have a reciprocal social security agreement with Korea. Thus South African GETs are not eligible to participate in Korea's National Pension Service. All other GETs are required to make monthly contributions. 

Countries with no lump-sum agreement: Ireland, New Zealand, United Kingdom

• If you work here for at least 10 years, you can receive monthly pension payments upon retirement.

Countries with lump-sum agreement: Australia, Canada, United States

• You can claim lump-sum payment immediately upon and within 5 years of leaving South Korea.

• If you work here for at least 10 years, you can receive monthly pension payments upon retirement.

• If you miss the 5-year deadline, you can apply for the lump-sum payment once you are at least 60 years old.
  

Pension Deductions

A GET's pension contribution will be 4.5% of their monthly salary. The amount will be matched by the GMOE, making the total contribution 9% of monthly salary. Please refer to Article 13 (Clause 6) of the contract. For more information, please visit the National Pension Service (NPS) website or see this article.

Your pension deduction calculation will be based predominantly on the following amounts:

• Base Salary

• Multiple Workplaces Allowance

• Rural Bonus

• Housing Allowance

• Entrance Allowance (divided by number of months remaining in current tax year)

• Settlement Allowance (divided by number of months remaining in current tax year)

A typical Level 2 Spring Intake teacher might see the following monthly NPS deduction during their first year:

0.045 * (2,300,000 + 100,000 + 130,000 + 30,000) = 115,200

4.5% * (base_pay + MWA + one-tenth of entrance + one-tenth of settlement)

Adjustments are made approximately every July and are based on your average monthly income for the previous tax year (which takes into account things like extra pay and housing allowance). 

The adjustment is calculated as follows:
Total annual income/ 365 days X 30.5 (average days in a month) = Average monthly salary.
Average monthly salary X 0.045 = Adjusted deduction rate.

Unlike health care and income tax adjustments, this NPS adjustments do not result in year-end settlements i.e., no "corrective" deductions or refunds.

Claiming a Lump Sum

Only Australians, Americans and Canadians can claim a lump sum pension payout. It is your responsibility to collect this before you leave Korea and this process does not involve the GMOE. Your lump sum includes your monthly pension contributions plus the GMOE's matched contributions. Thus, you will receive double the total amount you paid into the NPS.

You must visit one of the pension offices to apply for your pension lump sum. This must be done within one month of your departure from Korea and may not be done sooner. If you will not be leaving Korea after the completion of your contract with the GMOE, you can only claim your pension at the point when you do eventually leave Korea or reach retirement age. If you leave and return to Korea for employment at a later stage, you can still claim your lump sum upon leaving and then re-enter the pension system upon your return to Korea.

Pension Offices in Gwangju

There are three pension offices in Gwangju:
Buk-Gu Pension Office (국민연금공단 북광주지사)
Dong-Gu Pension Office (국민연금공단 동광주지사)
Gwangsan-Gu Pension Office* (국민연금공단 광주지역본부)

*The Gwangsan-Gu Pension Office does not show up on Google Maps, so the location has simply been tagged in the above link. For more accuracy, click on the Korean link to access Naver Maps.

What to bring to the Pension Office

• ARC

• Passport

• Proof of departure from Korea (e.g. an E-ticket)

• Bankbook of account you want the pension to be deposited into

It will take about a month after your departure from Korea for you to receive your pension lump sum. If you choose to have it deposited into a Korean account, ensure that your digital certificates are up-to-date. It is possible for pension to be paid into an international bank account but you will be responsible for all additional fees. If you would prefer this option, then please have additional bank details (such as SWIFT code and routing number) available when you visit the pension office.