Guide to the National Pension for Foreigners

Guide to the National Pension for Foreigners

□ About the National Pension Scheme

○ The National Pension Scheme is a Social Security System implemented by the Korean government to ensure a stable livelihood for residents by collecting contributions and paying pension benefits for those insured or their dependents, and to help them prepare for retirement or unexpected calamities, such as disabilities and deaths.

□ Compulsory Coverage of the National Pension Scheme

○ Like Korean nationals, foreigners aged between 18 and 60 who reside in Korea are subject to the compulsory coverage of the National Pension Scheme. Foreigners whose countries do not cover Korean nationals under their public pension schemes, however, are excluded from coverage under the NPS.

○ Despite the above provisions, if there are relevant provisions under the Social Security Agreement between Korea and any foreign country, those provisions will be applied.

□ Payment Contributions

○ For workers, the employees and their employers should each make contributions for the employees amounting to 4.5 percent of the employee’s standard monthly income, based on the employee’s’ earned income, for a total contribution equal to 9 percent of the employee’s monthly income.

○ Individually insured individuals should make contributions amounting to 9 percent of their reported standard monthly incomes.

※ There will be no discrimination in terms of the contribution rates between foreigners and Koreans. The payment should be made no later than the 10th day of the following month.

□ Benefits

○ If insured foreign individuals are entitled to Old-age, Disability, or Survivor Pensions, they will receive pension benefits according to the same standards as Korean nationals.

○ Old-age Pension

The Old-age Pension is paid monthly to those whose insured period is for 10 years or for those who are over 60 years old. The pensionable age will increase by one year every five years, starting from the year 2013, until those insured reach 65 in 2033.

○ Disability Pension

– The Disability Pension is paid to those left with a disability after the treatment of diseases or injuries incurred during the insured period, according to the degree of their disabilities. Annuities will be paid to those with 1st, 2nd and 3rd degree disabilities and lump-sum benefits will be paid to those with 4th degree disabilities.

○ Survivor Pension

– If currently insured persons or pensioners are deceased, a Survivor Pension will be paid every month to their surviving dependents whose livelihood was supported by the deceased person.

○ Lump-sum Refund

– In principle, a lump-sum refund is not paid to foreigners. However, in the case of foreigners meeting any of the following criteria, a lump-sum refund equivalent to the amount of contributions is paid when they leave Korean or when they reach the age of 60, plus the fixed interest, is paid to them, or to their survivors should they die. The following insured individuals apply.

 ① A foreigner whose home country has concluded a social security agreement with Korea to secure benefit rights by combining the insured period in each country.

 ② A foreigner whose country grants Koreans a benefit corresponding to a lump-sum refund.

③ A foreign worker whose visa is either E-8, (Employment for Training) E-9 (Non-Professional Employment), or H-2 (Visiting Employment).

※ Countries eligible for lump-sum refunds (45 Countries)

Via Reciprocity : Barbados, Belize, Bermuda, Bhutan, Cameroon, Colombia (spelled incorrectly last time), Congo, El Salvador, Ghana, Grenada, Hong Kong, India, Indonesia, Jordan, Kazakhstan, Kenya, Malaysia, Nigeria, the Philippines, Saint Vincent and the Grenadines, Sri Lanka, Sudan, Switzerland, Thailand, Trinidad and Tobago, Togo, Turkey, Tunisia, Uganda, Vanuatu, Venezuela and Zimbabwe

By Agreement : Australia, Austria, Belgium, Bulgaria, Canada, the Czech Republic, France, Germany, Hungary, Poland, Romania, Slovakia and the United States.

□ Application for the Lump-sum Refund

○ Required Documents

– Completing the application process in Korea, before departing Korea.

Required documents include: an application form, a copy of the person’s ID card (both Passport and Alien Registration Card), bankbook and plane ticket.

– Applying overseas, after departing Korea: The application form is to be notarized by a notary agency of the country in which the person resides and attests to living in by the Korean Consulate or Embassy. Also required are a copy of passport and a copy of the insured’s bankbook.

※ When applying for a lump-sum refund through an agent in Korea, the application must be submitted only by mail in order to avoid extra administration fees and incorrect or false applications.

APPLICATION FOR LUMP-SUM REFUND AT THE AIRPORT

※ Who can apply: A foreigner who is scheduled to depart for his/her own country through Incheon International Airport within a month of his/her application.

– The Airport Payment is applicable only if the flight’s departure time is between 11:00 through 24:00 on weekdays.

– After applying for the Lump-sum Refund at any of the NPS regional branches, those applying must receive a “Direction for Payment of Lump-sum Refund” from the Incheon Airport Office on the date of departure.

– Those applying must also receive a “Receipt of Currency Exchange” from the Shinhan Bank Incheon International Branch after handing in their “Direction for Payment of Lump-sum Refund”.

– Those applying will be eligible to receive the Lump-sum Refund after going through the immigration departure procedure.

★ Information of regional offices ★

Gwangju Regional Office

Zip Code: 506-724

Address: 3rd Floor, Kukminyeongeum Gwangjuhoegwan Building (국민연금 광주회관), 1582-4 Usan-dong, Gwangsan-gu, Gwangju

Phone No.: (062) 958-2081

Fax No. : (062) 455-3002

How to get there: For Bus No.s 20, 29, 37 or 196, get off at the Odung Elementary School Bus Station. Then, walk straight about 200 meters to Honam Hospital. The Kukminyeonkum Gwangju Building is visible near both the Kukmin Bank and the Honam Hospital.

Dong-Gwangju Regional Office

Zip Code: 501-025

Address: 8th Floor, Amore-Pacific Building, 5 Gumnamro, Gwangju

Phone No.: (062) 230-0784

Fax No.: (062) 455-3022

How to get there :

– From the Gwangju Metro Station, walk about 15 minutes toward the Amore-Pacific Building.

– Public transportation

① For Bus No.s 19, 38, 52, 57, 70, 170, 184 or 1187, get off at the Lotte Department Store Bus Stop.

② Subway: Travel to the Geumnamno 5-ga station anduse Exit No. 1. Reaching the office takes about 2 minutes.

Buk-Gwangju Regional Office

Zip Code : 500-864

Address : 2nd Floor, Songgang Building (송강빌딩), 80 Geumnamno, Buk-gu, Gwangju

Phone No.: (062) 520-8126

Fax No.: (062) 455-3042

How to get there : The office is across from HanGuknochong(한국노총) at the Yudong Intersection. Go to the second floor.

For more information, visit http://english.nps.or.kr/