Standard Chartered Bank Korea has decided to introduce an extended retirement age program as part of its efforts to extend retirement age. Retirement age will be extended from 58 to 62, but wages during that time will be determined by individual performance. Only workers who have worked for SC Korea for 15 years or more, and are 48 years of age or older for general managers or 45 years of age or older for deputy general managers can apply for the program.
Once applicants are in the program, they should bring in revenue amounting to twice their existing annual salary. For example, if a worker’s annual salary is 100 million KRW, then he or she can maintain that salary the next year by bringing in 200 million KRW in revenue through loan sales etc. The worker can make an additional 100% of the annual salary if he or she brings in more than that. However, the salary can also be reduced by up to 30% if the worker fails to meet the goal.
SC Bank Korea moved applicants to sales teams dealing with new customer acquisitions. A total of 116 workers applied for the program. A test run was in operation since July 2013 and terminated at the end of last year. The program will be introduced after consultations with SC Bank’s trade union.