The purpose of this Act is to contribute to ensuring the stable livelihoods of employees in their old age by stipulating matters necessary to establish and operate a retirement benefit scheme for employees.
The purpose of this Decree is to prescribe matters delegated by the Employee Retirement Benefit Security Act and those necessary for the enforcement thereof.
The definitions of terms used in this Act shall be as follows:
1. The term "employee" means an employee as defined in Article 2 (1) 1 of the Labor Standards Act;
2. The term "employer" means an employer as defined in Article 2 (1) 2 of the Labor Standards Act;
3. The term "wages" means wages as defined in Article 2 (1) 5 of the Labor Standards Act;
4. The term "average wages" means average wages as defined in Article 2 (1) 6 of the Labor Standards Act;
5. The term "benefits" means an annuity or lump sum paid to employees under a retirement benefit scheme or an individual retirement pension scheme prescribed in Article 25;
6. The term "retirement benefit scheme" means a defined benefit plan, a defined contribution plan, and a retirement allowance system under Article 8;
7. The term "retirement pension plan" means a defined benefit plan, a defined contribution plan, and an individual retirement pension plan;
8. The term "defined benefit plan" means a retirement pension plan in which the amount of the benefits an employee will receive is predetermined;
9. The term "defined contribution plan" means a retirement pension plan in which the amount of an employer's contribution to pay benefits is predetermined;
10. The term "individual retirement pension plan" means a retirement pension plan established to accumulate and operate the lump sum paid by a participant or the contributions paid by an employer or a participant according to the participant's choice in which the amount of the benefits or contributions is not predetermined;
11. The term "participant" means an employee who has joined a retirement pension plan;
12. The term "reserve" means money accumulated with contributions paid by an employer or a participant in order to pay benefits when a ground for the payment occurs, such as retirement of the participant;
13. The term "retirement pension trustee" means a person registered in accordance with Article 26 in order to operate and manage the retirement pension plan or to manage its assets.
This Act shall apply to all businesses or workplaces (hereinafter referred to as "businesses") employing employees: Provided, That this shall not apply to businesses employing only relatives cohabiting with their employer, nor to private households with employed persons.