Article 49 (Kinds of Benefits)

The kinds of benefits prescribed in this Act shall be as follows:
1. Old age pension;
2. Disability pension;
3. Survivor pension;
4. Lump-sum refund.

Article 50 (Payment of Benefits)

(1) Benefits under this Act shall be paid by the Service at the request of a person who has entitlement to such benefits (hereinafter referred to as "beneficiary").
(2) The amount of pension shall be calculated on the basis of a basic pension amount and a dependant pension amount, which may vary according to the grounds of payment thereof.

Article 51 (Basic Pension Amount)

(1) The basic pension amount for a beneficiary shall be the amount computed by multiplying the sum of each amount in the following subparagraphs by 1200/1000: Provided, That if the insurance coverage period exceeds twenty years, an amount equivalent to 50/1000 of the amount obtained in the main sentence shall be added to the amount obtained in the main sentence for each excess year (if the insurance coverage period is less than one year, each month shall be calculated as 1/12 of a year):
1. An amount computed by dividing by three the sum of the amounts in the following provisions:
(a) An amount computed by converting the average monthly income of the year three years preceding the first year of the payment of pension benefits according to the Fluctuation Rate of Nation-wide Consumer Price Index (referring to the Fluctuation Rate of Nation-wide Consumer Price Index announced by the Commissioner of the Korea National Statistical Office each year under Article 3 of the Statistics Act; hereafter the same shall apply in this Article) of the year preceding the first year of the payment of pension benefits, compared with that of the year three years preceding the first year of payment of pension benefits;
(b) An amount computed by converting the average monthly income of the year two years preceding the first year of the payment of pension benefits according to the Fluctuation Rate of Nation-Wide Consumer Price Index of the year preceding the first year of the payment of pension benefits, compared with that of the year two years preceding the first year of the payment of pension benefits;
(c) The average monthly income of the year preceding the first year of the payment of pension benefits;
2. An amount computed by converting the standard monthly income for the insurance coverage period of an insured person into its value of the year preceding the first year of the payment of pension benefits, each year according to the annual revaluation rate as announced by the Minister of Health and Welfare as prescribed by Presidential Decree and then dividing the sum of all converted standard monthly incomes by the total insurance coverage period: Provided, That such amount shall be an amount to be calculated according to the following items:
(a) The standard monthly income for an additionally included period pursuant to Article 18 shall be an amount equivalent to 1/2 of the amount calculated according to subparagraph 1;
(b) The standard monthly income for an additionally included period pursuant to Article 19 shall be an amount calculated according to subparagraph 1.
(2) When applying the amount obtained in each subparagraph of paragraph (1) to a beneficiary, an amount equivalent to the change rate shall be added or deducted by the end of March of each year, based on the Fluctuation Rate of Nation-wide Consumer Price Index of the year preceding the first year of the payment of pension benefits, compared to that of the year two years prior to the first year of the payment of pension benefits following deliberation by the National Pension Council established under Article 5.
(3) When applying the amount adjusted under paragraph (2) to a beneficiary, the applicable period shall be from April of the relevant year of adjustment to March of the following year.

Enforcement Ordinance

Enforcement Ordinance

Article 52 (Amount of Dependant Pension)

(1) The amount of dependant pension payable to each of the following persons whose livelihood is maintained by a beneficiary (referring to a deceased currently or formerly insured, in cases of a survivor pension) shall be an amount prescribed in the relevant subparagraph. In such case, eligibility criteria for such pension shall be prescribed by Presidential Decree:
1. Spouse: 150,000 won per year;
2. Child under age 19 or with at least a second degree disability (including any child born to or adopted by the spouse before marriage; hereafter the same shall apply in this Article): 100,000 won per year;
3. Parents aged at least 60 years or with at least a second degree disability (including the spouse of the father or mother, and parents of the spouse; hereafter the same shall apply in this Article): 100,000 won per year.
(2) Article 51 (2) and (3) shall apply mutatis mutandis to cases where the amount of dependant pension referred to in paragraph (1) applies to the beneficiary.
(3) If a person referred to in the subparagraphs of paragraph (1) falls under any of the following cases, the person shall be excluded from the calculation of the amount of dependant pensions pursuant to paragraph (1):
1. A pension beneficiary (including a beneficiary of aggregated benefits under the Act on Aggregation of National Pension and Occupational Pensions);
2. A beneficiary of a retirement pension, etc.;
3. A beneficiary of a survivor pension granted under the Public Officials Pension Act, the Pension for Private School Teachers and Staff Act, the Special Post Offices Act, or the Military Pension Act.
(4) No person referred to in the subparagraphs of paragraph (1) shall count in calculating the amount of dependant pension of at least two beneficiaries.
(5) If a person referred to in the subparagraphs of paragraph (1) falls under any of the following cases, the person shall be excluded from the calculation of the amount of dependant pensions:
1. When such person dies;
2. When such person's livelihood is no longer supported by the beneficiary;
3. When such person is divorced from his/her spouse;
4. When such person's child is adopted by another person or the adoptive relationship is terminated;
5. When such person's child reaches age 19: Provided, That any child with at least a second degree disability shall be excluded herefrom;
6. When such person's child or parent with at least a second degree disability is no longer in such disabling condition;
7. When the relationship with the child born to or adopted by the spouse prior to marriage is terminated by divorce;
8. When the relationship between a re-married father’s or mother’s spouse and the beneficiary is terminated by divorce between the parent and his/her spouse.

Enforcement Ordinance

Article 53 (Maximum Amount of Pension)

The amount of a monthly pension payment shall not exceed the largest amount among the following amounts:
1. An amount computed by adjusting mutatis mutandis under Article 51 (2) the average of the standard monthly incomes (adjusted mutatis mutandis under Article 51 (1) 2 based on that of the year preceding the first year of receipt of pension benefits) for the last five years during which the person in receipt of the benefits was an insured person;
2. An amount computed by adjusting mutatis mutandis under Article 51 (2) the average of the standard monthly incomes (adjusted mutatis mutandis under Article 51 (1) 2 based on that of the year preceding the first year of receipt of pension benefits) for the insurance coverage period.

Article 54 (Duration and Timing of Pension Benefits Payment)

(1) Pension benefits shall be paid beginning with the month immediately following the month in which grounds for pension benefits payment arise (where grounds for pension benefits payment arise because a lump-sum refund referred to in Article 78 (1), a postponed contribution referred to in Article 92 (1), or a contribution in arrears has been paid, the date on which the relevant payment is made), and ending with the month in which the date on which entitlement to benefits expires.
(2) Pension benefits shall be paid on 25th of each month; if the payment date falls on a Saturday or a public holiday, the payment shall be made on the date immediately preceding the date on which the payment is due: Provided, That where entitlement to pension benefits expires or pension benefits payment is suspended, pension benefits may be paid before the due date.
(3) If grounds for suspension of the pension benefits payment arise, no pension benefits shall be paid beginning with the month immediately following the month in which such grounds arise, and ending with the month in which such grounds cease to exist.

Article 54-2 (Exclusive Benefit Deposit Account)

(1) A beneficiary may request the Service to pay benefits not exceeding the amount prescribed by Presidential Decree into a designated account in his/her name (hereinafter referred to as "exclusive benefit deposit account") pursuant to Article 58 (2), and in such cases, the Service shall deposit the benefits into the exclusive benefit deposit account.
(2) Notwithstanding paragraph (1), where the Service is unable to transfer benefits to the exclusive benefit deposit account due to an information and communications failure or other unavoidable reasons prescribed by Presidential Decree, it may pay benefits as prescribed by Presidential Decree, such as in cash.
(3) A financial institution at which the exclusive benefit deposit account is opened, shall ensure that only the benefits are paid into the exclusive benefit deposit account, and shall manage it.
(4) Necessary matters concerning methods and procedures for requesting under paragraph (1) and management of the exclusive benefit deposit account under paragraph (1), shall be prescribed by Presidential Decree.
[This Article Newly Inserted by Act No. 13100, Jan. 28, 2015]

Enforcement Ordinance

Article 55 (Unpaid Benefits)

(1) Where a beneficiary dies, any unpaid pension benefits payable to the beneficiary shall be paid at the request of his/her spouse, children, parents, grandchildren, grandparents or siblings: Provided, That unpaid benefits shall not be paid to a person under the circumstances prescribed by Presidential Decree, such as abscondence from home and disapperance, and unpaid benefits shall be paid only to siblings whose livelihood is supported by the beneficiary, as prescribed by Presidential Decree, at the time of the death of the beneficiary.
(2) The order of priority among persons to receive the benefits under paragraph (1) shall be the deceased's spouse, children, parents, grandchildren, grandparents and siblings. When two or more persons are in the same priority status, the pension benefits shall be divided and paid equally among them, and the method of payment shall be prescribed by Presidential Decree.
(3) A claim for unpaid benefits referred to in paragraph (1) shall be made within five years from the date on which a beneficiary dies.

Enforcement Ordinance

Enforcement Ordinance

Article 56 (Adjustment of Overlapped Payment of Benefits)

(1) If a beneficiary is entitled to two or more pension benefits under this Act, he/she shall be paid only one of the pension benefits at his/her choice and the payment of other benefits shall be suspended.
(2) Notwithstanding paragraph (1), where non-selected pension benefits under paragraph (1) fall under any of the following subparagraphs, the amount specified in the relevant subparagraph shall be added to the selected pension benefit in payment:
1. Where the non-selected pension benefits are survivor pension benefits (excluding cases where the selected pension benefits are a lump-sum refund): An amount equivalent to 20/100 of the survivor pension;
2. Where the non-selected pension benefits are a lump-sum refund (excluding cases where the selected pension benefits are disability pension benefits and the non-selected pension benefits include a lump-sum refund resulting from the payment of contributions by the person in question): An amount equivalent to the amount referred to in Article 80 (2).

Article 57 (Recovery of Benefits)

(1) Where a person in receipt of benefits falls under any of the following cases, the Service shall recover the benefits, as prescribed by Presidential Decree:
1. Where a person has been paid benefits by fraudulent or illegal means;
2. Where benefits were erroneously paid as a result of a person who failed to file a report, or has filed a belated report, to the Service, on the grounds for termination of entitlement to benefits referred to in Articles 75 and 121 (2);
3. Where benefits were erroneously paid on other grounds.
(2) In cases falling under paragraph (1) 1 and 2, the Service shall recover benefits with accrued interest prescribed by Presidential Decree added thereto: Provided, That no accrued interest shall be added in cases not attributable to an obligor for payment.
(3) Where an obligor for payment of an amount to be recovered under paragraphs (1) and (2) fails to pay it by the payment deadline, the Service shall collect arrears, by applying mutatis mutandis Article 97 (1) and (2), and in such cases, "Health Insurance Corporation" shall be construed as "the Service," and "contributions" as "amounts to be recovered", respectively: Provided, That no arrears may be collected in case of natural disasters or other unavoidable causes prescribed by Presidential Decree.
(4) If a person presumed dead under Article 15 is confirmed to be alive, the Service shall recover the benefits paid based on the presumption of the person’s death from the recipient of such benefits.
(5) If an obligor for payment of an amount to be recovered under paragraphs (1), (2) and (4) and arrears referred to in paragraph (3) has entitlement to other benefits or is to receive money to be returned from the Service, such as over-payments or erroneous payments, the Service may appropriate such benefits or money to cover the amount to be recovered and the amount of arrears (hereinafter referred to as “amount to be recovered”) pursuant to paragraphs (1) through (4).
(6) If an amount to be recovered under paragraphs (1) through (5) or the amount of arrears does not exceed an amount prescribed by Presidential Decree, the Service may elect not to collect it.

Enforcement Ordinance

Enforcement Ordinance

Enforcement Ordinance

Enforcement Ordinance

Article 57-2 (Notice of, Demand for Payment of Amount to be Recovered, Dispositions against Default, etc.)

(1) Where the Service intends to collect an amount to be recovered or an amount in arrears under Article 57 (1) through (4), it shall give notice of payment stating the amount to be recovered, amount in arrears, and the payment deadline, etc. within a specified period. In such cases, notice for payment may be given in electronic form, as prescribed by Ordinance of the Ministry of Health and Welfare, and Article 88-2 (3) shall apply mutatis mutandis to the arrival thereof.
(2) Where a person in receipt of notice under paragraph (1) fails to pay the amount to be recovered by the specified deadline, the Service shall demand the payment by fixing a deadline, as prescribed by Presidential Decree.
(3) Where a person in receipt of a demand for payment of an amount to be recovered and an amount of arrears pursuant to paragraph (2) fails to pay them by the specified deadline, the Service may collect them in the same manner as delinquent national taxes are collected, after obtaining approval from the Minister of Health and Welfare. In such case, Article 95 (5) and (6) shall apply mutatis mutandis to dispositions against default, and "Health Insurance Corporation" shall be construed as the "National Pension Service."
[This Article Newly Inserted by Act No. 9691, May 21, 2009]

Enforcement Ordinance

Enforcement Ordinance

Article 58 (Protection of Entitlement to Benefits)

(1) No entitlement to benefits shall be transferred, seized, or provided as security.
(2) No benefit paid to a beneficiary, not exceeding the amount prescribed by Presidential Decree, shall be seized.
(3) No Benefit deposited into the exclusive benefit deposit account or claim on such benefits shall be seized.

Enforcement Ordinance

Article 59 (Payment after Deduction of Unpaid Amounts)

(1) Where a currently or formerly insured who has a debt yet to be repaid related to a loan made to him/her pursuant to Article 46 acquires entitlement to benefits or dies, such debt may be deducted from the benefits to be paid under this Act (including a lump-sum death payment, but excluding benefits the payment of which has been suspended): Provided, That with respect to a beneficiary of pension benefits (excluding disability pension benefits which are paid as a lump-sum compensation pursuant to Article 68 (2)) from among the benefits paid under this Act, the amount deducted shall not exceed 1/2 of the relevant monthly pension amount.
(2) In order to deduct a debt related to loans pursuant to paragraph (1), the Service shall issue a peremptory notice to demand reimbursement of the debt in writing, for a period of at least 20 days, and it shall notify the beneficiary in advance that such debt will be deducted from the relevant benefits unless the debt is paid by the deadline.
(3) The amount deducted under paragraph (1) shall be regarded as having been paid to the beneficiary in such amount.

Article 60 (Exemption from Taxes and other Public Charges)

With respect to an amount paid as benefits under this Act, taxes and other public charges of the State or a local government shall be reduced or exempted, as prescribed in the Restriction of Special Taxation Act, other Acts and subordinate statutes, or municipal ordinances of the local government.