South Korea mulls changes to retirement benefits act

Leonardo Patrizi

November 24, 2020

Proposals to amend the Employment Retirement Benefits Security Act were recently presented to South Korea’s parliament.

Highlights

Requirements to set up a pension plan would be phased in by company size.
Employers with 300 or more employees (full-time equivalents) that provide a defined benefit pension plan must establish a pension committee and an Investment Policy Statement.
Employers must provide pension education at least once per year. The external institutions qualified to provide education on pension issues would be specified.
A retirement pension fund plan operated by the Korea Workers’ Compensation and Welfare Service would be provided for small- and medium-sized companies with 30 or fewer employees (full-time equivalents).

_{by Celine Lee

Retirement Consulting Analyst}

_{by Fiona Webster

Principal, Mercer’s Law & Policy Group}

_{by Stephanie Rosseau

Principal, Mercer’s Law & Policy Group}