workers' compensation programs, rehabilitation supports and welfare improvements.
Welfare Service
Retirement Pension Plan (“RPP”) is a pension plan to ensure employees with less than 30 employees' retirement benefits and retirement income
※ Retirement pension plan: A system in which the user reserves resources for retirement benefit payments to a financial institution during his/her tenure and the funds are operated by the user or the employee and paid as a pension or lump sum upon retirement
※ Retirement pension plan: A system in which the user reserves resources for retirement benefit payments to a financial institution during his/her tenure and the funds are operated by the user or the employee and paid as a pension or lump sum upon retirement
Effects of the introduction of RPP on an employer
-
As the deduction for the full amount of RPP contributions legally specified is allowed, workers are able to do expense proceeding for the RPP contributions even before they retire.
- The deduction will not be allowed as of 2016 when reserve for retirement benefits is determined. -
In order to relieve workers of a burden of the lump-sum payment of severance benefits, the employer must lay aside a small amount of RPP contributions as legally specified monthly, quarterly, biannually and annually.
- Prediction and financial management regarding severance benefits become easier as the burden for payment is standardized.
Effects of the introduction of RPP on a worker
- Workers are able to receive severance benefits when their workplace goes bankrupt or insolvent, as severance benefits are deposited at external financial institutions.
-
Workers can utilize the RPP to raise revenues by utilizing an Individual Retirement Pension(IRP) account.
※ Employees can pay up to 18 million won per year at their own expense, and tax deduction benefits up to 7 million won per year (including local income tax, up to 16.5% deducted)
Procedure for registering with RPP
-
Discussion about
registration with RPP -
An employer shall discuss registration with RPP with workers.
It’s allowed to register with the plan if a majority of workers agree.
-
Selection of RPP type
- he employer shall choose either of the two plan types : DC type and corporate IRP type.
-
Selection of a financial
institution responsible for RPP management -
Responsibilites for RPP management will be entrusted to a financial institution on a contractual basis. The employer shall choose either of the following :
Woori Bank (trust agreement) and Samsung Fire & Marine Insurance (insurance agreement).
-
Submission of required documents
-
The employer shall prepare required documents to the K-COMWEL by mail, Fax, etc.
Required documents : RPP application form, RPP beneficiary registration form, RPP management agreement, agreement on personal information collection/use/inquiry/provision
-
Notification of
registration with RPP - Personnel in charge from the K-COMWEL or the RPP management agency will contact the employer to explain about RPP operation & commodities.