South Korea mulls changes to retirement benefits act

South Korea mulls changes to retirement benefits act

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). 

Related resources

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Retirement Consulting Analyst        

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Principal, Mercer’s Law & Policy Group

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