S. Korea Mulls Changes to Employee Retirement Benefit Security Act | Mercer

S. Korea Mulls Changes to Employee Retirement Benefit Security Act

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S. Korea Mulls Changes to Employee Retirement Benefit Security Act
S. Korea Mulls Changes to Employee Retirement Benefit Security Act
Calendar28 June 2019

A group of legislators have introduced proposed reforms (Korean) of South Korea’s Employee Retirement Benefit Security Act (ERBSA).

Highlights

  • Key provisions would: Require all employers to adopt an ERBSA pension plan by 2026, with the mandate applying to large employers before smaller employers
  • Place tighter restrictions on interim settlement regarding amounts and eligibility
  • Require employers with at least 300 employees to update their investment policy statement at least every year
  • Allow employers with no more than 30 employees to adopt pension funds approved by an employee representative
  • Include specialized educational institutions in pension plan education programs for employees
  • Impose fines of up to KRW 10 million on employers that fund less than the statutory requirement 

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