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  • dizzle
  • Explorer

    • 9

    • November 28, 2012, 05:04:45 pm
    • Mapo-gu, Seoul
Pension/Paycheck Issue at Public School
« on: November 29, 2012, 10:50:05 am »
I have a question regarding the amount that is taken out of a paycheck for pension at a public school.

I know that it is Korean law for 4.5% of your income to be taken out and contributed toward the pension plan. During my 1st year, with the base salary at 2.0 mil, I contributed 90,000 won/month towards the national pension plan.

I started my second year in March 2012. Yesterday, I received a letter regarding the status of my pension from the government. Considering  the EPIK/SMOE pay increase of 2.2 mil for a second year, 99,000 won should be now taken out per month. However, on the letter, it states that the both the school and I have still been contributing 90,000 won/month since the new contract.

I informed the discrepancy to our school accountant, but she is saying that according to Korean law that the amount being taken out is correct. Am I missing something here?
« Last Edit: November 29, 2012, 11:24:23 am by dizzle »


  • lotte world
  • The Legend

    • 2272

    • August 22, 2011, 09:00:38 pm
    more
Re: Pension/Paycheck Issue at Public School
« Reply #1 on: November 29, 2012, 11:01:58 am »
Have you tried calling the pension office?




  • newb
  • Newgookin

    • 0

    • November 20, 2012, 10:38:27 am
    • South Korea
Re: Pension/Paycheck Issue at Public School
« Reply #3 on: November 29, 2012, 11:11:33 am »
The change will occur in July.  So you will continue to pay the same rate as the last year until July.  That's the pension rule.
« Last Edit: November 29, 2012, 11:22:00 am by newb »
HEY CAN YOU FILL THE OIL AND CHECK THE GAS PLEASE!!!!


  • newb
  • Newgookin

    • 0

    • November 20, 2012, 10:38:27 am
    • South Korea
Re: Pension/Paycheck Issue at Public School
« Reply #4 on: November 29, 2012, 11:40:58 am »
@newb,

Thanks for taking the time to respond! When you mean July, do you mean this past July or July of next year? If it is July of next year, then do I not get a bump in pension with the bump in salary if I leave in March? My contract is runs only til Mar 2013.

Pension is readjusted in JULY.  What that means is that the rate will be determined by for example this coming JULY 2013:

They will average your total salary from July 2012 - June 2013.  This average salary will be the base for your pension.  Same with previous year(s) and following years to come.
« Last Edit: November 29, 2012, 11:43:50 am by newb »
HEY CAN YOU FILL THE OIL AND CHECK THE GAS PLEASE!!!!


Re: Pension/Paycheck Issue at Public School
« Reply #5 on: November 29, 2012, 12:09:26 pm »
Stumbled upon because of the title.

Curious.  If the OP was making 2.0 starting March '11 and 2.2 in March '12, and the pension is recalculated every July, then starting this past July he would be paying a number greater than 90K but he is still paying 90K.  He would have had 4 months at the 2.2 rate.


  • newb
  • Newgookin

    • 0

    • November 20, 2012, 10:38:27 am
    • South Korea
Re: Pension/Paycheck Issue at Public School
« Reply #6 on: November 29, 2012, 12:13:59 pm »
Stumbled upon because of the title.

Curious.  If the OP was making 2.0 starting March '11 and 2.2 in March '12, and the pension is recalculated every July, then starting this past July he would be paying a number greater than 90K but he is still paying 90K.  He would have had 4 months at the 2.2 rate.

That is correct.  Although very small amount, the OP should point this fact to the admin people and get it corrected.
HEY CAN YOU FILL THE OIL AND CHECK THE GAS PLEASE!!!!


Re: Pension/Paycheck Issue at Public School
« Reply #7 on: November 29, 2012, 02:59:55 pm »
You have the right to be a tad upset.  Doing the math, that is an extra 72K in your pocket.    That's a night out at least or some good eatin'.  Is not reporting/not paying the correct amount illegal?  Or is it a case of "hey, it's Korea" and at least the are paying into the pension?


  • lotte world
  • The Legend

    • 2272

    • August 22, 2011, 09:00:38 pm
    more
Re: Pension/Paycheck Issue at Public School
« Reply #8 on: November 29, 2012, 03:13:06 pm »
You have the right to be a tad upset.  Doing the math, that is an extra 72K in your pocket.    That's a night out at least or some good eatin'.  Is not reporting/not paying the correct amount illegal?  Or is it a case of "hey, it's Korea" and at least the are paying into the pension?

Yes, it's illegal.  And also, the employer matches the pension contributions (so that's 72K/m in *their* pocket too), so if OP is eligible for a pension refund then he will get less at the end.

Generally it should be a wash.  When the pension office is informed they'll adjust the amounts and tell the school.  It means OP will have to pay a lump sum as well as the school to cover the adjustment.


  • newb
  • Newgookin

    • 0

    • November 20, 2012, 10:38:27 am
    • South Korea
Re: Pension/Paycheck Issue at Public School
« Reply #9 on: November 29, 2012, 08:03:28 pm »
I asked the school accountant to comb through my pension documents together during lunch. Newb was correct in that pension is recalculated every July: 90,000 won/month (based on my first year salary) should be put towards my pension until July 2012. However, this did not explain why I was still contributing 90,000 won/month and not a higher figure based on my new salary for Aug, Sept, Oct, and Nov. '12.

The reason was clear and frustrating: the school simply did not report my salary increase to the pension office. Thus, the pension office did not know they had to take out more for my pension each paycheck. Yeah, sure the amount is negligible month to month, but considering that the school matches pension, the difference in a year depending on your pay scale is a useful, couple hundred bucks!


Thanks for the assistance, fellow Waygooks!

Hope everyone's paying attention to their pension letters!

So are you saying the accountant decided to do nothing instead of making correction/adjustment to your pension?  If so, that's not acceptable.  You should visit him first thing in the morning with your co-t and make sure they correct their mistake.  They should make the additional pension deduction on your next pay and also make proper adjustment with NPS. Don't take "no" for an answer.  If you let them slide, no matter how small the amount, they'll continue to make mistakes on their behalf. 
HEY CAN YOU FILL THE OIL AND CHECK THE GAS PLEASE!!!!


  • wildbore
  • Newgookin

    • 2

    • June 08, 2012, 01:26:51 am
    • Ulsan, Korea
Re: Pension/Paycheck Issue at Public School
« Reply #10 on: December 04, 2012, 01:49:49 pm »
This is not an issue. Your first salary report is what they use to determine your pension contribution from start until July of the next year. After July, they use your taxable income report for the previous year as the basis for your contributions for the next 12 months.

Your pay raise will increase your taxable income for 2012, which in turn will increase your pension contribution in July 2013.

Get it?