National Pension: Social Security Agreement for Irish and Italian Residents
Introduction
Foreigners 18-60 years old who are residing and working in Korea, regardless of their nationality, should be covered under the National Pension Service (NPS). Foreigners whose countries do not cover Korean nationals, however, are excluded from the coverage of NPS. Even so, if there are relevant provisions under the Social Security Agreement (SSA) between Korea and any foreign countries, those provisions will be applied.
To protect the rights of foreigners, the SSA is publishing a series of articles spotlighting SSAs in cooperation with Gwangju News. This month’s featured SSA is for foreigners from Ireland and Italy.
Ireland
◯SSA between Korea and Ireland entered into force: Jan. 2009
◯Exemption from Dual Coverage
①In general, an employee is subject to the legislation of a contracting country in which he/she is employed.
②In general, a self-employed person is subject to the legislation of the country where he/she ordinarily resides.
③A detached worker is exempt from being covered under the legislation of the country which he/she is sent to for less than 5 years if he/she is covered under the legislation of his/her home country (In the case that agencies of both contracting countries agree, the exemption period may be extended).
④If a person who ordinarily resides and is self-employed in his/her home country, is temporarily (within 5 years) self-employed in the other contracting country, he/she is only subject to the legislation of his/her home country during that period (In the case that agencies of both contracting countries agree on, the exemption period may be extended).
◯Benefits under this Agreement
Even though your periods of coverage in one country are not sufficient to qualify for pension benefits, you may be eligible for benefits after this agreement has entered into force. This is possible due to totaling the coverage of both countries
①Korean National Pension Benefits under the SSA
– If you have at least 12 months of insured period in Korea but do not have enough periods of coverage to qualify for pension benefits (old-age pension, survivors pension) under the Korean National Pension Scheme, you may be able to qualify for Korean National Pension benefits by totaling the periods of coverage under the Korean and Irish pension systems. However, those periods creditable under the Irish pension system must not coincide with the periods under the legislation of Korea.
– Your benefit is calculated by dividing the Korean periods of coverage by the total periods of coverage and then multiplying by the benefits amount (Theoretical Benefit). The benefits amount (Theoretical Benefit) is calculated based on the total periods in both countries.
②Irish Pension Benefits under the SSA
– If you have at least 52 contribution weeks of coverage under the Irish Pension Scheme but do not have enough periods of coverage (e.g., at least 260 weeks for an old-age pension; 520 weeks on and after 2012) to qualify for pension benefits under the Irish pension system, you may be able to qualify for Irish pension benefits by totaling the periods of coverage under the Korean and Irish pension systems. However, those periods creditable under the Korean National Pension Scheme must not coincide with the periods under the legislation of Ireland.
– Your benefit is calculated by dividing the Irish periods of coverage by the total periods of coverage and then multiplying by the benefits amount (Theoretical Benefit). The benefits amount (Theoretical Benefit) is calculated based on the total periods in both countries.
③A national of either contracting country who resides in the other contracting country is treated equally as a national of the other contracting country in the application of the legislation of the other contracting country.
④Korean lump-sum refunds are not granted to Irish nationals based on this agreement. Lump-sum refunds can be paid to nationals of a third state only in accordance with the reciprocity principle under the National Pension Act.
⑤There is no lump-sum refund system under the Irish social security, and as such any contribution which a Korean national paid to the Irish social security system will be granted in monthly installments not in a lump-sum.
Italy
◯SSA between Korea and Italy entered into force: Apr. 2005
◯Exemption from Dual Coverage
① In general, an employee is subject to the legislation of a contracting country in which he/she is employed.
② A self-employed person is subject to the legislation of a contracting country in which the person ordinarily resides.
③ Where a person is employed in the territory of one contracting country and is self-employed in the territory of the other country for the same period, he/she is subject to the legislation of a contracting country in which he/she ordinarily resides.
④ A detached worker is exempt from coverage under the pension system of the contracting country which he/she is sent to for less than 3 years if he/she is covered under the pension scheme of his/her home country (a 3-year extension is available by the consent between both countries’ agencies).
◯Benefits under this Agreement
① Since the Agreement on Social Security between Korea and Italy is a Contributions-only Agreement, there is no provision of Totalization of Periods of Coverage for the entitlement to benefit.
② Therefore, there are no pension benefits under the agreement; whether the payment is granted depends on the each country’s legislation respectively.
③ Furthermore, a Korean lump-sum refund is not paid to the nationals of Italy.