On Oct. 10, SK FSS announced launch of retirement pension transfer.
SK FSS said the retirement pension transfer service allowing subscribers to change operators without canceling existing products will be launched on Oct. 31, 2024.
Follows SK MOHW Sep. 2024 finalized pension reform promotion plan, see #224859.
Overview of Transfer Service
The service will be provided by 37 of 44 retirement pension operators in voluntary cooperation with product providers, such as establishment of their own system.
Aims to minimize subscribers' loss when transferring contracts and facilitate sound service-based competition, thus contributing to improving retirement pension returns.
Subscribers who wish to transfer their retirement pension account in the form of an in-kind transfer can open another pension operator's account and apply for a transfer.
Pension operators receiving subscribers' transfer application will inform subscribers of the list of products eligible for in-kind transfers, then the transfer result via SMS/app.
The transfer service applies to major retirement pension products, such as principal and interest guaranteed products in the form of trust contracts, mutual funds, ETFs.
In-kind transfer is possible within the same system like between defined benefits or defined contributions; transfer may be impossible depending on features of products.
Products excluded from in-kind transfers or not handled by another operator cannot be transferred without cancellation, but can be transferred after conversion into cash.
Next Step
SK LAB, SK FSS will launch an advance inquiry function, which allows subscribers to check whether their products are eligible for in-kind transfer before applying a transfer.
Continue to review measures to allow in-kind transfers of products under different systems, such as between defined contributions and individual retirement pension.
Oct. 11, 2024 Additional Explanation
On Oct. 11, 2024, SK FSS explained the background of the transfer service system.
Clarified that the new in-kind retirement pension transfer service requires the entire industry's voluntary participation to establish a large-scale computing system.
SK FSS will ensure expanded choices of retirement pension subscribers and sound competition in the retirement pension market through the system from Oct. 31, 2024.
