• Welcome to Korea Workers’ Compensation & Welfare Service
  • K-COMWEL contributes to the improvement of workers quality of life through optimal
    workers' compensation programs, rehabilitation supports and welfare improvements.
  • Retirement Pension Plan

    • Welfare Service
    • Retirement Pension Plan
    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

    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
     
    the consent of the majority of workers
    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
     
    DC type & corporate IRP 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
     
    Woori Bank and Samsung Fire & Marine Insurance
    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
     
    Delivery of the required documents to the K-COMWEL
    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.