GEB’s Network partner Kyobo Life has joined forces with the European Chamber of Commerce in Korea (ECCK) to develop an innovative Umbrella Defined Contribution Pension Plan that helps extend retirement savings to those employed by SMEs.
Although the Korean pension system provides an adequate allowance for the majority of people currently employed by corporations, small to medium sized enterprises (SMEs) can sometimes be left conspicuously exposed.
SMEs either don’t have a corporate pension plan in place, or they only have a severance pension plan. This is because for many SMEs the adoption of a defined contribution plan is too complex and expensive.
Kyobo Life Insurance, in cooperation with the European Chamber of Commerce in Korea (ECCK), has developed the first “Umbrella Defined Contribution Pension Plan”. This innovative concept allows multiple employers to participate under one umbrella plan.
Main advantages of the ECCK Kyobo Plan
Simple and Easy: Defined Contribution plan administration processes are pre-established and standardised, allowing companies to swiftly adopt and efficiently manage the plan.
Cost Efficient: The more the company’s pension assets are combined, the lower the fee rates that will be applied.
Reduced Costs: Under this plan, the pension service provider’s fee is determined by the combined amount of pension reserves of all the companies participating in the plan. This means that the fee rate becomes lower as the amount of asset increases. In other words, SMEs benefit from economy of scale.
One on One Service: Kyobo Life is the one and only pension provider that offers a “1 on 1 matching consultant” service. This involves a consultant actually visiting the company to provide updated information on the plan.