The employee opens an IRP account at the financial company that he/she wants. (fill up the contract and application form). IRP service provider gives the confirmation of IRP participation to the employee.
The employee resigns. When the employee prepares retirement application from, he/she writes IRP (contract number).
The company confirms retirement and the employee claims the retirement benefit to the pension service provider.
The pension service provider transfers the retirement benefit to the IRP account the employee opened. (For DC participants, the product that the employee is investing in can be transferred to IRP without cashing. To directly transfer, the DC pension service provider and IRP service provider should be the same.)
The employee requests retirement to the company.
In case the employee has not opened an IRP account on the retirement request, the retirement benefit shall be transferred to IRP of the pension service provider determined under the pension plan rules. The designated pension service provider shall ask the employee to open IRP.
The company confirms retirement and claim for retirement benefit
The pension service provider transfers the retirement benefit to the employee’s IRP account. IRP service provider shall give a confirmation of IRP participation to the employee.