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SEMA Installment Savings Plan

SEMA Installment Savings Plan

An installment savings plan that lets members build up their savings by making monthly deposits; they can choose the deposit amount and the length of deposit terms.


Eligibility

  • - Members who enrolled in Pension For Scientists and Engineers or SEMA Payroll Savings Plan and retired members
  • - Persons who retired after ten years of employment at SEMA’s institutional members (temporarily eligible until April 2023)
  • - A person who is eligible for general membership under Article 6 of the Korea Scientists and Engineers Mutual-Aid Association Act

Deposit Amount:

  • - Members can choose the deposit amount, not less than KRW 100,000 up to the enrollment limit (in increments of KRW 10,000).
  • - Enrollment limit: the sum of all the monthly deposits in all the enrolled plans cannot exceed KRW 100 million.
  •   Monthly limit per period: 1 year (KRW 8.33 million), 2 years (KRW 4.16 million), 3 years (KRW 2.77 million), 5 years (KRW 1.66 million)

      Members can sign up for the plan multiple times within the enrollment limit.

      The enrollment limit is calculated based on the sum of the enrollment limit and that of the existing ‘Building up KRW 10 Million Plan’ (July 2017~ December 2019).

  • - Members can increase or decrease the number of plans during the deposit period (no limit on the number of times members can increase or decrease plans).

Deposit Period: 1 year (12 times), 2 years (24 times), 3 years (36 times), 5 years (60 times)


Payment Rate (general): maximum 3.2%/ annual compound rate/ fixed rate

Tax Benefit
Deposit period 1 year 2 years 3 years 5 years
Payment rate (interest rate) 2.8% 3.0% 3.2%

  • * Even if a market interest rate changes, the rate at the enrollment date (the day when the first deposit is made) will be applied until maturity.

Special Interest Rate for Young Scientists and Engineers

  • - Eligibility: scientists and engineers below the age of forty on the day of enrollment
  • - Payment rate: the payment rate for SEMA Installment Savings Plan + 0.3% p
Tax Benefit
Deposit period 1 year 2 years 3 years 5 years
Payment rate (interest rate) 3.1% 3.3% 3.5%
  • - Enrollment limit: the minimum amount KRW 100,000; the maximum amount KRW 500,000
  • - Enrollment period: April 21, 2020 ~ April 20, 2021
  • - Only one plan per person is allowed and one-time-only (members cannot sign up again after maturity or early termination)

Tax Rate

  • - Subject to a regular tax rate of 15.4%, including comprehensible financial income tax
  • - If members are eligible for tax-free comprehensive savings accounts under Article 88-2 of the Restriction of Special Taxation Act, they can open the account with tax-exemption within the limit of KRW 50 million, the sum of all account balances across financial institutions.

The Deposit Transaction

  • - The monthly deposit will be automatically transferred (CMS) on the first day of every month from a linked account of the member who signs up for the plan.
  • - If the transfer fails due to reasons such as insufficient balance, the deposit will be transferred within the next three business days.
  • - If the transfer fails after the next three business days, the monthly deposit is deemed to be in arrears. Late payment of missed deposits is not allowed. Failure to make three monthly deposits in a year will result in automatic early termination.

Enrollment Date: The day when the first deposit is made

  • - If members sign up for the plan until five business days before the scheduled transfer date and complete CMS transfer registration, the first deposit will be withdrawn on the first day of the following month.
  • - If members sign up for the plan after the monthly enrollment closing date, the first deposit will be withdrawn on the first day of the second month after signing up
  • - If the first deposit is not made, the enrollment process will be postponed to the next month. (Three postponements will result in the enrollment rejection)

The Maturity Date: the first day of the following month after the final deposit is made.


Savings Payment (receiving at maturity)

  • - On the maturity date, the savings (the principal and interest) are paid to the account that members designated when they signed up for the plan.
  • - If the maturity date is not a business day, the payment will be made on the immediately preceding business day; the interest rate will be calculated until the payment date.
  • - If members want to sign up for ‘SEMA Savings Deposit Plan' with the received savings, they will be automatically enrolled, and their savings will be transferred to the new plan.

The Early Termination Payment Rate

The Early Termination Payment Rate
Less than 90 days 90 days or more and less than 180 days 180 days or more and less than one year One year or more and less than two years Two years or more and less than three years Three years or more
The early termination payment rate 50% of the interest 60% of the interest 70% of the interest 80% of the interest 90% of the interest 100% of the interest

  • - In case of early termination, the interest will be paid at the early termination payment rate according to the deposit period (including the automatic early termination due to three consecutive unpaid monthly deposits).
  • - In case of early termination due to the plan holder’s death, the following rates will be applied:
  • For 30 days from the date of death: the payment rate

    After the above date to the maturity date: Pension For Scientists and Engineers’s payment rate for cash and cash equivalents