Pension For Scientists and Engineer
Retirement Benefit Scheme
Employee Retirement Benefit Security Act
SEMA retirement pension (pension for scientists and engineers)
Korea Scientists and Engineers Mutual-Aid Association Act Article 16-2 (Operation, etc. of Retirement Pension Payment Business)(4)
Employers who have paid contributions (the amount referred to in paragraph 2) to SEMA is considered to establish the retirement benefit plans under the Employee Retirement Benefit Security Act.
Pension for Scientists and Engineers(DC)
Benefit and Contribution
In addition to retirement pension payment, science and technology development grants will be paid to the members when they retire (available only to executives and employees of ‘government-funded research institutes’, ‘specific research institutes’, and other eligible organizations defined by Article 16-6 of Korea Scientists and Engineers Mutual-Aid Association Act).
Regulatory employer contributions at least 8.3% of annual salary + members’ additional contributions (institutions eligible for development grants: more than 4.5%)
- Based on total annual salary (under the Labor Standard Act, Article 2)
- Members’ additional contributions (limit: up to KRW 18 million) are subject to a tax deduction of up to KRW 7 million per year.
Contributions (employer, member) + operating profit + (science and technology development grant)
Types of Benefits
- Period for the payments is at least over ten years.
- Members aged 55 or above after retirement are qualified for the annuity payment.
- Members can choose to have their annuity payments last for 10 to 35 years or up to 100 years.
Lump Sum or Lump Sum + Annuity
- Lump sum payment
- Receive some portion as a lump sum and the remaining amount as an annuity
Example) Suppose that a member’s retirement benefit is valued at KRW 100 million when he or she retires. She or he can receive KRW 20 million as a lump sum and KRW 80 million as an annuity.
- If the recipient of pension benefit passes away, a surviving spouse (aged 55 or above) can continue to receive the payment of the benefit over the remaining period.