Introduction to the New Social Security Agreement with Korea
On 6 December 2006 the Minister for Foreign Affairs, the Hon Alexander Downer, and the Korean Minister for Foreign Affairs, Song, Min-soon, signed a Social Security Agreement between Australia and the Republic of Korea.
The Agreement cannot come into force until the necessary treaty and legislative processes are completed in both countries. At this stage, it is expected to come into effect from 1 October 2008.
Under the Agreement, Australia and Korea will contribute fairly to the support of people who have spent part of their working lives in both countries. People will be able to move between Australia and Korea knowing that their pension rights are recognised in both countries. Generally speaking, people living in either country will be able to add periods of Australian working life residence (ie the period between 16 years of age and age pension age) to insurance periods in Korea in order to qualify for pensions from either or both countries.
The Agreement covers Australian age pension and Korean aged pension and lump sum refund. Once the Agreement comes into effect, former residents of Australia will be able to claim Australian age pensions without leaving Korea, and people who worked in Korea now living in Australia will be able to lodge claims (at Centrelink offices) for Korean pensions covered by the Agreement.
The Agreement also includes provisions covering Australia's Superannuation Guarantee scheme, similar to those included in Australia's recently implemented agreements with Belgium, Chile, Croatia, the Netherlands Portugal, Norway and the USA. These provisions will eliminate the need for contributions into both countries' systems in respect of the same work when Australians are sent to work temporarily in Korea, or when Korean workers are sent to work in Australia temporarily. The Australian Taxation Office will administer these provisions and any enquiries about them should be directed to the ATO.