Members who have worked for more than 1 year must receive severance pay settlement when processing their retirement. Use flex's severance pay settlement feature to calculate and process payments.
Please complete Settlement Settings before starting the settlement.
flex provides DB-type and severance pay settlement features. For DC-type, please settle through the managing institution.
Member HR Information Registration - Entering Retirement Date
Process the retirement through [Process Retirement] from the three-dot menu on the right side of the member's profile.
Enter the member's retirement information in detail.
Retirement Date: Enter the last working day.
If retiring after leave (leave of absence), enter the last day the leave (leave of absence) ends
flex Access End Date: flex access is restricted from the set date. Set this if you want to restrict flex access before the retirement date.
Employment Insurance Retirement Reason: Select the same code as the employment insurance loss reason code provided by the Employment Insurance Corporation.
Retirement Benefits Basic Information Management - Entering Retirement Benefit Information
Enter retirement benefit information for the member in the left menu [Payroll Settlement] -> [Retirement Income].
Settlement Start Date: The start date used as the basis for retirement benefit calculation (usually the hire date, but enter if different from hire date)
Retirement Benefit Type: Select the applicable type from Retirement Pension (DC), Retirement Pension (DB), Severance Pay, or Excluded.
If set to Retirement Pension (DC), enter the enrollment date, pension management company, and account number (DC).
If set to Retirement Pension (DB), entering the enrollment date and pension management company will sync during severance pay settlement.
DC-type retirement benefits are not provided here (processed through the managing institution).
The retirement benefit information fields can be left empty, but we recommend entering the information for management purposes alongside other members.
Retirement Benefit Settlement Settings - Average Wage Items and Retirement Income Calculation Settings
You can configure detailed settings via the left menu [Payroll Settlement] -> [Settlement] -> [Severance Pay Settlement] -> [Retirement Settlement Settings] button.
Average Wage Item Settings
In addition to legally required items, you can set which payroll payment items are included in the average wage calculation.
Payment item settings can be configured and checked in Payment Items.
Legally required items are automatically included in the average wage calculation. If excluding them from the average wage calculation, please manually enter and modify the wages for the 3 months before retirement.
Legally required items: Base salary, overtime pay, etc.
Retirement Income Calculation Settings
Configure the settings in the left menu at the bottom [Settings] -> [Settlement Settings] -> [Retirement Income Calculation Settings].
Retirement Income Calculation Basis: When calculating retirement benefits, you can choose whether to base the calculation on average wages or ordinary wages.
However, the amount more favorable to the member must be applied (Labor Standards Act Article 2, Paragraph 2).
When set to "Apply Higher Amount," the system automatically applies the amount more favorable to the member.
