NATIONAL PENSION ACT [See entire ACT]
CHAPTER I GENERAL PROVISIONS
- Article 1 (Purpose)
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The purpose of this Act is to contribute to the promotion of the stable livelihood and welfare of the public by providing pension benefits for the old-age, disability, or death.
- Article 2 (Administration)
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The Minister of Health and Welfare shall be in charge of the national pension services provided under this Act.
- Article 3 (Definitions, etc.)
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(1) The terms used in this Act shall be defined as follows:
1. The term "employee" means a person (including directors or other executive officers of corporations) who offers his/her labor and services in a workplace, irrespective of the type of occupation, and receives wages in return for his/her labor and services to maintain his/her livelihood: Provided, That persons prescribed by Presidential Decree shall be excluded herefrom;
2. The term "employer" means the business owner of a workplace to which a relevant employee belongs;
3. The term "income" means an amount obtained by deducting non-taxable income prescribed by Presidential Decree from the money earned from offering of one’s labor for a specified period, or an amount obtained by deducting necessary expenses from the money earned from operating a business or the management of assets;
4. The term "average monthly income" means an amount computed by averaging the standard monthly income for all workplace-based insured persons and individually insured persons each year;
5. The term "standard monthly income" means an amount determined on the basis of the monthly income of a person insured by the National Pension Service (hereinafter referred to as "insured person") in order to calculate his/her pension premiums and benefits;
6. The term "workplace-based insured person" means an employee employed in a workplace and an employer, insured by the National Pension Service pursuant to Article 8;
7. The term "individually insured person" means a person insured by the National Pension Service pursuant to Article 9, who is not a workplace-based insured person;
8. The term "voluntarily insured person" means a person insured by the National Pension Service pursuant to Article 10, who is neither a workplace-based insured person nor an individually insured person;
9. The term "voluntarily and continuously insured person" means a person currently or formerly insured by the National Pension Service, who becomes insured pursuant to Article 13 (1);
10. The term "contribution" or “pension premiums” means, in cases of a workplace-based insured person, the sum of employer contributions and employee’s contribution, and in cases of an individually insured person, voluntarily insured person, and voluntarily and continuously insured person, an amount paid exclusively by such person, all of which are necessary to support the costs associated with national pension services;
11. The term "employer contribution" means an amount contributed by the employer of a workplace-based insured person;
12. The term "employee contribution" means an amount borne by a workplace-based insured person;
13. The term "workplace" means a place of business or an office that hires employees.
(2) In applying this Act, the term "spouse, husband or wife" includes any person who is in a de facto marital relationship.
(3) If the fetus of a currently or formerly insured is delivered at the time when such person acquires his/her entitlement to benefits pursuant to this Act, the child shall be deemed a child whose livelihood is supported by such a currently or formerly insured.
(4) The range of income according to the types of insured persons, methods of calculating the amount of average monthly income, methods of determining the amount of standard monthly income, and the period for application thereof, etc., shall be prescribed by Presidential Decree.
Enforcement Ordinance
- Article 2 (Persons not Deemed Employees)
The following persons shall not be deemed employees under the proviso to Article 3 (1) 1 of the National Pension Act (hereinafter referred to as the "Act"):
1. A person who is employed on a daily basis or for a specified period of less than one month: Provided, That this shall not apply to employment to last for at least one month;
2. A person who is employed in the workplace of which location is not fixed;
3. A director of a corporation without remuneration as referred to in Article 3 (1) 2;
4. A part-time worker whose contractual working hours are less than 60 hours in a month: Provided, That from among the part-time workers concerned, a person who continues to work for more than three months for the purpose of making a living and falls under any of the followings shall be excluded herefrom:
(a) A part-time lecturer under subparagraph 3 of Article 7;
(b) A person who desires to be deemed an employee with the consent of the employer.
Enforcement Ordinance
- Article 3 (Scope of Income)
(1) The scope of income of a workplace-based insured or of a voluntarily and continuously insured engaged in work at the workplace covered by the National Pension Scheme (excluding cases where a beneficiary of a retirement pension, etc. under Article 8 (1) of the Act and a recipient of assistance under the National Basic Living Security Act becomes voluntarily and continuously insured, however, including a beneficiary of a retirement pension, etc. under Article 8 (1) of the Act who has applied for aggregation under Article 8 of the Act on Aggregation of National Pension and Occupational Pensions; hereinafter referred to as "work place-based, voluntarily and continuously insured person") under Article 3 (1) 3 of the Act shall be as follows:
1. For employers (limited to the employers of workplaces which are not corporations): Income under paragraph (2) 1 through 3, and 5 and 6;
2. For employees: Income obtained by deducting from earned income under Article 20 (1) of the Income Tax Act the non-taxable earned income under subparagraph 3 of Article 12 of the same Act (including the amount on which taxes are not imposed under Article 18-2 of the Restriction of Special Taxation Act).
(2) The scope of income of an individually insured person, and a voluntarily and continuously insured person who is qualified to be an individually insured person (hereinafter referred to as "individually, voluntarily and continuously insured person") under Article 3 (1) 3 of the Act shall be as follows, and if the relevant insured person has at least two sources of income, the scope of income of such person shall be the aggregate of at least two sources of incomes:
1. Agricultural income: Income gained from the seeds cultivation business, fruit orcharding/horticultural services, sericulture business, plant nursery services, speciality crop producing business, livestock husbandry business, breeding stock farming, hatchery business, and work incidental thereto;
2. Forestry income: Income gained from the forest management business, forest product production business, wild bird and animal breeding business, and work incidental thereto;
3. Fishery income: Income gained from the fishing industry and work incidental thereto;
4. Earned income: Income pursuant to (1) 2 of this Article;
5. Business income: Amount of business income pursuant to Article 19 (2) of the Income Tax Act;
6. Deleted.
- Article 3-2 (Responsibility of the State)
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The State shall establish and implement policies necessary so that pension benefits under this Act are provided in a stable and continuous manner.
[This Article Newly Inserted by Act No. 12242, Jan. 14, 2014]
- Article 4 (Financial Accounting of National Pension Scheme and Securing Long-term Financial Balance)
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(1) The level of benefits and contributions under this Act shall be adjusted to secure the long-term financial balance of the National Pension Scheme.
(2) The Minister of Health and Welfare shall, every five years in accordance with Presidential Decree, make an accounting of the finances of the National Pension Scheme, and map out a comprehensive plan on the overall operation of the National Pension Scheme, including its financial outlook, adjustment of contributions, and an operational plan for the National Pension Fund, and obtain the President’s approval following the deliberation by the State Council, and then submit the approved plan to the National Assembly and publish the plan in accordance with Presidential Decree.
(3) If any significant change occurs in securing long-term financial balance of national pension, demographic structure, living standards, incomes, prices, or other economic conditions, the contributions, benefits to be paid, conditions for receiving benefits, etc. under this Act shall be adjusted accordingly.
Enforcement Ordinance
- Article 11 (Financial Accounting, etc. of National Pension)
(1) The Minister of Health and Welfare shall, under the provisions of Article 4 (2) of the Act, make an accounting of finances of the National Pension Fund under Article 101 of the Act (hereinafter referred to as the "Fund") by March 31 every five years and establish a comprehensive plan on the overall operation of the National Pension Scheme, including its financial outlook for financial balance, adjustment of pension premiums, etc., and shall obtain the approval of the President by the last day of September of the relevant year, following deliberation by the National Pension Council and submit it to the National Assembly by the last day of October of the relevant year.
(2) The Minister of Health and Welfare shall make public notice of the comprehensive plan concerning the operation of the National Pension Scheme, including the financial outlook of the National Pension Scheme, etc. in at least one general daily newspaper and at least one economic daily newspaper registered to be supplied nationwide under Article 9 (1) of the Act on the Promotion of Newspapers, etc.
- Article 5 (National Pension Council)
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(1) A National Pension Council shall be established under the Ministry of Health and Welfare to deliberate on the following matters concerning national pension services:
1. Matters concerning the national pension system and accounting of finances;
2. Matters concerning benefits;
3. Matters concerning contributions;
4. Matters concerning the National Pension Fund;
5. Other matters concerning the operation of the National Pension Scheme tabled to the meeting by the Minister of Health and Welfare.
(2) The National Pension Council shall consist of a chairperson, a vice chairperson and council members; the Vice Minister of Health and Welfare shall be the chairperson of the Council, and the vice chairperson shall be elected from among and by council members representing the public interests; council members shall be appointed or commissioned by the Minister of Health and Welfare in accordance with the following classifications:
1. Four persons recommended by employers' organizations to represent employers;
2. Four persons recommended by employees' organizations to represent employers;
3. The following persons representing individually insured persons:
(a) Two persons recommended by organizations of farmers and fishermen;
(b) Two persons recommended by organizations related to self-employed persons, other than by organizations of farmers and fishermen;
(c) Two persons recommended by civic organizations and consumer organizations;
4. Five experts having knowledge and experience in the National Pension Scheme as members representing the public interest.
(3) Necessary matters concerning the organization and operation of the National Pension Council shall be prescribed by Presidential Decree.
Enforcement Ordinance
- Article 12 (Duties of Chairperson, etc. of National Pension Council)
(1) The chairperson shall represent the National Pension Council and supervise the affairs of the Council.
(2) The vice chairperson shall assist the chairperson and when the chairperson is unable to carry out his/her duties due to inevitable circumstance, carry out his/her duties on his/her behalf.
Enforcement Ordinance
- Article 13 (Term of Office, etc. of Members of National Pension Council)
The term of office of the members of the National Pension Council other than the chairperson shall be two years and members may be reappointed.
Enforcement Ordinance
Enforcement Ordinance
- Article 14 (Meetings, etc. of National Pension Council)
(1) The chairperson shall call and preside over meetings of the National Pension Council.
(2) Meetings of the National Pension Council shall be classified into regular meetings and extraordinary meetings.
(3) Regular meetings shall be held in February each year, and in any of the following cases, extraordinary meetings shall be held:
1. At the request of the Minister of Health and Welfare;
2. At the request of at least 1/3 of the members of the National Pension Council;
3. When the chairperson deems necessary.
(4) Meetings of the National Pension Council shall be held with the presence of a majority of registered members and resolutions of the meetings shall be made with the consent of a majority of members present.
(5) The chairperson shall report the resolutions of the Council to the Minister of Health and Welfare.
Enforcement Ordinance
- Article 15 (Preparation, Keeping, etc. of Minutes of Meetings of National Pension Council)
(1) The chairperson of the National Pension Council shall prepare and keep the minutes of the Council.
(2) The minutes shall include the time, venue and matters discussed and resolved, and the chairperson and members present at the meeting shall sign them, or sign and seal them.
(3) Currently insured persons, formerly insured persons, entitled persons, or other persons interested in to the national pension program may request, at any time, to inspect the minutes.
Enforcement Ordinance
- Article 16 (Secretary)
(1) The National Pension Council shall have a secretary who is appointed by the by the Minister of Health and Welfare from among public officials belonging to the Ministry of Health and Welfare.
(2) The secretary shall handle the affairs of the National Pension Council according to the directions of the chairperson.
Enforcement Ordinance
- Article 17 (Allowances Payable to Members)
Allowances may be paid to members present at the meetings of the National Pension Council within budgetary limits: Provided, That it shall not apply to the case where a member who is a public official is present in direct connection with his/her duties.
