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The Insured Person has to visit one of the regional offices of NPS with the required documents.
The NPS is providing Airport Payment Service
for foreigners leaving Korea through Incheon Airport.
Airport Payment is applicable only when the beneficiary’s flight leaves between 11:00 and 24:00, Mon to Fri.
(not available on official holidays)
AND
The ex-employer of the Insured Person makes a disqualification report to the NPS at least one day before the departure date.
(1) Application by mail from abroad
The applicant has to fill out the forms and send them with the required documents.
Before mailing the application, the applicant needs to have the whole application notarized by a notary public and then apostilled
(or attested by the local Korean consulate).
(2) Application from abroad by agent in Korea
An agent in Korea may visit one of the regional offices with the required documents and apply for the benefit on behalf of the beneficiary who is staying abroad.
In this case, the benefit is transferred to the beneficiary’s bank account and
not to the agent’s bank account.
Tell your school you are leaving and want to apply for a refund.
Fill in a form and hand over the relevant bank information.
Sit back and wait for the money.
It should be deposited around
10-15 days after you finish your contract.
Steps to refund for NPS
Steps to refund for KTPF
Registration and Expected Retirement Lump-sum
3. Benefit Level
lump-sum refund = sum of contributions + interest accrued
- The interest rate is the average rate of interest of banks whose operations cover the entire nation and which are established under the Banking Act as of January 1 of the corresponding year.
- The interest rate of a time deposit with a maturity of three years for 2013: 2.7%
- The interest rate of a time deposit with a maturity of one year for 2013: 2.6%
2. Foreigners and Payment of the Lump-sum Refund (continued)
A lump-sum refund is paid given the following 3 cases:
(②) In cases where a foreigner whose home country has concluded a social security agreement with Korea regarding the payment of the Lump-sum Refund. As of November 2013: 13 countries (Canada, United States, Germany, Hungary, France, Australia, Czech Republic, Belgium, Bulgaria, Slovakia, Poland, Romania, Austria)
(3) Regardless of the nationality, in cases where a foreigner, who has been covered under the National Pension Scheme with the status of sojourn of E-8 (Employment for Training), E-9 (Non-professional Employment), or H-2 (Visiting Employment) returns to his/her home country <Effective from May 11, 2007>
2. Foreigners and Payment of the Lump-sum Refund (continued)
A lump-sum refund is paid given the following 3 cases:
(1) In cases where a foreigner whose home country grants Koreans benefits corresponding to a Lump-sum Refund under the National Pension Scheme. (Article 126 of the National Pension Act and Article 113 of the Enforcement Decree of the National Pension Act).
2. Foreigners and Payment of the Lump-sum Refund
"Foreign insured persons are treated equally as Korean national insured persons under the National Pension Scheme. If a foreign insured person becomes eligible to receive an Old-age, Survivor or Disability pension, he/she can be paid any of the pension benefits under the Korean National Pension Act."
"There is no discrimination in terms of benefit amounts and remitting benefits abroad, etc. But there is a certain distinction regarding a Lump-sum Refund. In principle, a Lump-sum Refund is not paid to foreigners leaving Korea after having been covered under the scheme." BUT...
1. Coverage
2. Contributions
3. Benefits
4. Foreigners and the Lump-sum Refund
5. Social Security Agreement (SSS for the Philippines)
Categories of Insured persons
(1) Work-place-based Insured Persons
Income Range: KRW220,000 ~ (3.6M threshold)
(2) Individually Insured Persons
(3) Voluntary Insured persons
(4) Voluntary and Continuously Insured Persons
Coverage Criteria
a. General Coverage Criteria (regardless of income)
(1) age: 18 to 59 years old
(2) all residence in Korea
b. Who are excluded from the coverage of the scheme?
(1) government employees, military personnel, private school teachers and employees of specially designated post offices
(2) pension benefeciaries aged 55 to 60 years old
c. Other exceptional cases
(1) under 18 years old with consent from employer
Contribution Rate
(1) Workplace-based Insured Persons
and Voluntarily
Calculation of Contributions
- based from standard monthly income (gross income)
Payment of Contribution
- "The employer is obliged to pay his portion of the contribution with the employee's contribution deducted from wages. The Individually, Voluntarily, and Voluntarily & Continuously Insured Persons are responsible for paying all their contributions."
- Failure to pay: 3% to 9% of the contribution amount according to the number of months delayed.
Types of benefits
a. Old-age Pension
b. Disability Pension
c. Survivor Pension
d. Lump-sum Refund
(1) In the case when a person who had been an insured person for less than 10 years reaches the age of 60 (except for the Special Old-age Pension beneficiaries).
(②) In the case when a person who is or was an insured person dies but there is no survivor who is eligible for a Survivor Pension.
(③) In the case when a person loses his/her Nationality or immigrates to a foreign country.
Foreigners and Payment of the Lump-tum Refund
"Foreign insured persons are treated equally as Korean national insured persons under the National Pension Scheme. If a foreign insured person becomes eligible to receive an Old-age, Survivor or Disability pension, he/she can be paid any of the pension benefits under the Korean National Pension Act."
"There is no discrimination in terms of benefit amounts and remitting benefits abroad, etc. But there is a certain distinction regarding a Lump-sum Refund. In principle, a Lump-sum Refund is not paid to foreigners leaving Korea after having been covered under the scheme." HOWEVER,...
Foreigners and Coverage
a. age: 18 to 59 years old
b. working
c. type: workplace-based insured person OR individually insured person
Foreigners and Payment of the Lump-sum Refund (continued)
A lump-sum refund is paid given the following 3 cases:
(2) In cases where a foreigner whose home country has concluded a social security agreement with Korea regarding the payment of the Lump-sum Refund. As of November 2013: 13 countries (Canada, United States, Germany, Hungary, France,
Australia, Czech Republic, Belgium, Bulgaria, Slovakia, Poland, Romania, Austria)
(③) Regardless of the nationality, in cases where a foreigner, who has been covered under the National Pension Scheme with the status of sojourn of E-8 (Employment for Training), E-9 (Non-professional Employment), or H-2 (Visiting Employment) returns to his/her home country <Effective from May 11, 2007>
2007
2001
2013
2010
2004
1998
Foreigners and Payment of the Lump-sum Refund (continued)
A lump-sum refund is paid given the following 3 cases:
(1) In cases where a foreigner whose home country grants Koreans benefits corresponding to a Lump-sum Refund under the National Pension Scheme. (Article 126 of the National Pension Act and Article 113 of the Enforcement Decree of the National Pension Act).
Benefit Level
lump-sum refund = sum of contributions + interest accrued
- The interest rate is the average rate of interest of banks whose operations cover the entire nation and which are established under the Banking Act as of January 1 of the corresponding year.
- The interest rate of a time deposit with a maturity of three years for 2013: 2.7%
- The interest rate of a time deposit with a maturity of one year for 2013: 2.6%
Foreigners and Coverage (continued)
Exclusions:
(①) Any national whose country’s pension scheme does not mandatorily cover Korean citizens. {Republic of South Africa, Nepal, Maldives, Myanmar, Bangladesh, Vietnam, Saudi Arabia, Armenia,Swaziland, Ethiopia, Iran, Egypt, Tonga, Pakistan, Fiji, Cambodia, Singapore, Belarus,
East Timor, Georgia}
(②) Foreigners who are not registered under the Immigration Act, 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 terms of stay.
(③) Foreigners whose stay status falls under any of the following; Culture & Art (D-1), Student (D-2), Industrial Training (D-3), General Training (D-4), Religion (D-6), Visiting & Joining Family (F-3) or Others (G-1).
(④) By the Social Security Agreement.
Objectives
Elimination of Dual Coverage
Totalization of Coverage Periods
Equal Treatment
Overseas Remittance of Benefits
Types
Totalization Agreement
Contributions-Only Agreement
Philippines-South Korea Status
Signed on December 5, 2005, but not entered into force,
Totalization type, Philippine Social Security System (SSS)
A. National Pension Service (NPS)
B. Korea Teachers Pension Fund (KTPF)
1) Automatically Eligible School Organizations
2) Optionally Eligible Schools/ Institutes
Personal Asset Management Consultation
Financial advisors from four major banking institutions are available to KTPF members.
(The current list is comprised of NH, KB, Woori, Hana.)
Free Legal Consultation
By arranging regional lawyers, KTPF helps members obtain legal advice on various legal matters.
The retirement allowance is paid to a retired or deceased person whose service length is greater than 1 year (paid separately from a retirement benefit).
The retirement annuity is paid to a retiree whose life-long career is greater than 20 years.
Its paid (total service period) average standard monthly income is 1.9% rate of every year’s service period AND a maximum of one’s retirement annuity amount cannot be over 62.7% (33 years) of his/her monthly income.
When he/she has completed his/her service for more than 20 years and wants to retire before the age of 60 or the age limit for the retirement annuity, he/she may receive an early-retirement annuity, which is reduced at a fixed rate depending on the lack of working years.
The lump-sum retirement grant is paid to a retiree whose life-long career is less than 20 years.
The lump-sum retirement annuity is paid to a retiree whose lifelong career is greater than 20 years and if he/she wants to receive a retirement annuity in a lump sum.
KTPF has affiliations with companies in the travel, hotel, leisure, and medical industries, enabling private school personnel and families to use facilities at discounted rates.
Affiliation cards via four domestic banks
- NH, Kookmin, Woori, and Hana
- KTPF enables its members to enjoy auxiliary services from affiliated companies.