Mixed Plan (DB + DC)

A type of retirement pension in which the employer enrolls in two or more retirement pension plans, making it possible for the subscriber (employee) to enroll in both DB and DC plans
Establishment of a mixed plan: Determine composition ratio before the introduction of two or more pension plans
  • 확정급여형 제도의 급여 = (퇴직일의 일시금 기준 계속근로기간 1년에 대하여 30일분의 평균임금에 상당하는 금액 이상) X (규약으로 정한 설정비율)
  • 확정기여형 제도의 부담금 = (가입자 연간입금총액의 1/12 이상에 해당하는 부담금) X (규약으로 정한 설정비율)

혼합형 제도에서의 각각의 부담금 설정비율(DB설정비율+DC설정비율)의 헙은 1(100%)이상이 되어야 함.

Example of a mixed plan

Sample: enrollment in 70% DB and 30% DC simultaneously
  • DC contributions: Total annual salary x 11/2 x 30% (employer transfers to employee’s account each year)
  • DB retirement benefits Final average wages x years of service x 70% (paid upon retirement)

DB제도의 급여 수준 = 평균임금×근속연수, DB규약으로 정한 기업의 적립비율

DC제도의 부담금 수준 = 연간 총 입금의 1/12, DC규약으로 정한 기업의 적립비율

가입비율의 합은 1(100%)이상 예)DB 70%, DC 30%

Depositor Protection

  • DB plan is not protected by the Korea Deposit Insurance Corp under the Depositor Protection Act.
  • The DC plan and IRP is protected under the Depositor Protection Act only for reserves invested in financial products subject to depositor protection. In such cases, protection is limited to KRW 50 mil per person, which is apart from the depositor protection limit for your other financial products. The amount in excess of KRW 50 mil is not subject to protection. In case of enrollment in two or more retirement pension plans, they shall be protected for up to a collective total of KRW 50 mil.