MOEL Interpretation

Severance Pay Act

Individual Retirement Pension Plan (IRP)


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37 Records
37.A company intends to pay retirement benefits after processing the retirement of a defined contribution (DC) plan participant who is in a comatose state. However, the employee has not opened an individual retirement pension (IRP) account. Is there a way to pay the benefit without opening a new IRP account? For example, is court escrow possible?
36.Inquiry 1 If an employee enrolled in a retirement pension plan is expected to be dismissed due to being missing and cannot be contacted to open an IRP account, is it permissible for the retirement benefit to remain in the retirement pension account operated by the retirement pension provider? Inquiry 2 If the retirement benefit is retained in the retirement pension account under the same circumstances as in Inquiry 1, does delayed interest apply after 14 days from the employee’s retirement date? Inquiry 3 If the employer has fulfilled their payment obligations in good faith and proves the absence of fault, is the employer still required to pay the lump-sum retirement benefit into the employee’s regular salary payment account, even in the case of a missing person? If the payment is made to the salary account, should only the portion exempt from seizure under Article 246(1)(5) of the Civil Execution Act be paid and the seized portion be deposited separately via escrow by the retirement pension provider, or should the entire amount be paid?
35.● In a case where an employee was dismissed by resolution of the company’s Personnel Committee and left the company without establishing an Individual Retirement Pension (IRP) account for receiving retirement benefits, and despite the employer’s efforts—such as sending documents and attempting contact via phone—the retired employee continues to refuse to open the IRP account, what measures can the employer take?
34.● Whether it is permissible to remit retirement pension benefits to the company’s bank account at the time of an employee’s retirement for the purpose of repaying an in-house loan, when the employee is enrolled in a retirement pension plan.
33.● Can a retiree from a workplace that has adopted a severance pay system (not a retirement pension plan) deposit their severance pay into an individual retirement account (IRA) operated by a retirement pension provider? ● If establishing such an account is possible, will the severance income withheld at the workplace be refunded and automatically consolidated into the individual retirement account? ● Are all retirement pension providers required to operate individual retirement accounts? ● When establishing an individual retirement account, can the individual select a provider of their choice? (Can a retirement pension provider refuse without a valid reason?)
32.● Can a participant who has already opened an individual retirement pension (IRP) account open an additional IRP account?
31.● When a defined contribution (DC)-type retirement pension system is abolished and the accumulated funds are paid into an IRP, is it possible to withdraw the retirement benefits or cancel the IRP account? What is the reason for the restriction on interim settlement?
30.● Whether a corporation’s representative or executive can conduct an interim settlement of retirement benefits and enroll in an individual IRA, and whether the interim payment should be recorded as temporary payments, loans, etc., in accounting records.
29.● Whether a lump-sum payment made by the Mutual Aid Association under the 「Science and Technology Personnel Mutual Aid Association Act」 may be used to establish an individual retirement account (IRA).
28.If a person wishing to join an individual retirement account (IRA) fails to meet the tax deferral requirements (requirements: enrollment within 60 days from the retirement date, with at least 80% of total retirement benefits), can the individual still newly enroll in an IRA if tax deferral is not applied?
27.If an employee of a financial institution registered as a retirement pension provider wishes to personally establish an individual retirement account (IRA) to deposit and manage their interim retirement benefits, is it permissible for the employee to open such an IRA account with the financial institution to which they belong?
26. If an employee of a financial institution registered as a retirement pension provider receives interim retirement benefits and wishes to personally establish an individual retirement account (IRA) to deposit and manage the funds, is it permissible to open the IRA account with the financial institution to which they belong? Employees with less than one year of continuous service are excluded from the mandatory coverage of the retirement benefit system. If a company has 11 regular employees, including three employees with less than one year of service, would the company still be eligible for the special provisions for establishing IRAs? Also, should these employees be included when determining the consent of a majority?
25. * Is it possible to deposit interim retirement benefits into an individual retirement account (IRA)?
24.If a participant in a defined contribution (DC) plan receives a lump-sum payment through early withdrawal, is it possible to establish an individual retirement pension (IRP) account afterward and deposit the lump-sum amount into the IRP?
23.Is it possible to receive a portion of the funds accumulated in an IRA as a pension and the remainder as a lump-sum payment? Can the IRA be closed, and is partial early withdrawal allowed?
22. * When a worker retires from a company that has enrolled in a retirement insurance policy, and the worker requests the trustee to directly transfer the retirement benefit to the account of a retirement pension provider for the purpose of enrolling in an individual retirement account (IRA), and such request is substantiated by relevant documentation (e.g., retirement benefit claim forms), Can the retirement insurance trustee directly transfer the funds to the retirement pension provider’s account? Does this violate the principle of direct payment of retirement benefits? Can it be regarded that the trustee has paid the benefit directly to the beneficiary (the worker)? * Does an individual retirement account under the retirement pension system refer to a passbook-style account similar to a bank savings account that shows deposits, investment income, and enables settlement with a physical passbook? Or, even if there is no such physical passbook, can an account that is assigned a unique ID number and records deposits and investment status electronically for individual management be considered a valid individual retirement account?
21.If a participant in a defined contribution (DC) retirement pension plan retires without receiving contributions for 2013–2014 and wages for March and April 2014 due to the company''s financial difficulties, is it possible to transfer the remaining (non-defaulted) portion of the retirement benefit to an IRP and subsequently withdraw the transferred amount?
20.If a person who qualifies for an exemption from the mandatory transfer of retirement benefits into an IRP retires, is it permissible to pay part of the retirement benefit into an IRP and the remainder into a personal (deposit) account?
19.The IRA special exception system requires all employees to be enrolled. Does this requirement also apply to those with less than one year of continuous service?
18. * Is partial withdrawal from an Individual Retirement Pension (IRP) account allowed? * Can members aged 55 or older receive a partial lump-sum payment?
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