South Korea Issues Pension Reform Details

Connecticut Enacts Paid Family and Medical Leave

South Korea’s government has published new information about its proposed pension reforms that would require employers to introduce a retirement pension plan, specifies which authorities would be responsible for certain measures, and includes an implementation timetable.

Highlights

  • Specification of which authorities would be responsible for certain measures.
  • A timetable for introducing the reforms.
  • Expanded eligibility to receive a housing pension:
  • – The age threshold to join is age 55, down from age 60.
  • Private sector employers, starting with larger employers, would be required to phase-in retirement pension plans.
  • The introduction of pension management methods (delegation/defaults/trust) that aim to leverage economies of scale and encourage portfolio diversification.
  • Revision of retirement income taxation by using tax incentives that encourage individuals to draw annuities instead of lump sums; allowing expired Individual Savings Accounts (ISAs) to be deposited in Individual Retirement Pension (IRP) accounts; and expanding IRP tax credits to individuals aged 50 or older.

Related Resources

Non-Mercer Resource

Mercer Law & Policy Resource

Fiona Webster
by Fiona Webster

Principal, Mercer’s Law & Policy Group

Stephanie Rosseau
by Stephanie Rosseau

Principal, Mercer’s Law & Policy Group

Speak with a Mercer Consultant
Provide your contact information to get in touch
*Required Fields