CHAPTER I GENERAL PROVISIONS
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 terms used in this Act are defined as follows: <Amended on Apr. 13, 2021; Jan. 11, 2022>
| 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, a SME retirement pension fund 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 or a SME retirement pension fund 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. |
| 14. | The term "SME retirement pension fund plan" means a scheme of providing benefits to employees by creating and operating a mutual fund with contributions, etc. paid by at least two employers and employees of a small and medium enterprise to support a stable livelihood of the employees in their old age (limited to business employing not more than 30 regular employees; hereinafter the same shall apply); |
| 15. | The term "default option scheme" means a scheme of operating a reserve by a method designated in advance if the participants fail to voluntarily select the operation method of the reserve; |
| 16. | The term "default option management plan" means an operation method approved under Article 21-2 (1) to operate the reserve in accordance with a default option scheme. |
| Article 3 (Scope of Application) |
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.
CHAPTER II ESTABLISHMENT OF RETIREMENT BENEFIT SCHEMES
| Article 4 (Establishment of Retirement Benefit Schemes) |
| (1) | Each employer shall establish at least one retirement benefit scheme in order to pay benefits to retiring employees: Provided, That this shall not apply to employees whose continuous service period is less than one year, nor employees whose average weekly working hours over a four-week period is less than 15 hours. |
| (2) | In establishing a retirement benefit scheme pursuant to paragraph (1), no differentiation shall be made within the same business in respect of the application, etc. of the method for calculating the amount of benefits or contributions. |
| (3) | If any employer intends to establish a type of retirement benefit scheme or change an existing type into a different one, the employer shall, if a trade union participated by a majority of employees exists at the business concerned, obtain the consent of the trade union, and if no such trade union exists, obtain the consent of a majority of employees (hereinafter referred to as "representatives of employees"). |
| (4) | If any employer intends to change the details of a retirement benefit scheme established or changed pursuant to paragraph (3), he or she shall seek opinions from the representatives of employees: Provided, That if the employer intends to change such details in a manner unfavorable to employees, he or she shall obtain the consent of the representatives of employees. |
| Article 5 (Retirement Benefit Schemes of Newly Established Businesses) |
The employer of a business newly established on or after the enforcement date of the Guarantee of Employees' Retirement Benefits Act as wholly amended by Act No. 10967 (excluding where merged or partitioned) shall establish a defined benefit plan or a defined contribution plan within one year of the establishment of the business after seeking the opinions of the representatives of employees.
| Article 6 (Establishment of Two or More Retirement Pension Plans for Participants) |
| (1) | Where an employer simultaneously establishes a defined benefit plan and a defined contribution plan for participants, the amount of benefits under the defined benefit plan or the amount of contributions under the defined contribution plan shall be as follows, notwithstanding Articles 15 and 20 (1): |
| 1. | Benefits under the defined benefit plan: The amount obtained by multiplying the amount of benefits prescribed in Article 15 by the establishment ratio prescribed by rules for defined benefit plan; |
| 2. | Contributions under the defined contribution plan: The amount obtained by multiplying the amount of contributions prescribed in Article 20 (1) by the establishment ratio prescribed by rules for defined contribution plan. |
| (2) | An employer shall formulate rules for retirement pension plan whereby a retirement pension plan is established in such a manner that the total of the respective establishment ratios referred to in paragraph (1) 1 and 2 shall not be less than one. |
| Article 7 (Protection of Entitlement to Benefits) |
| (1) | An entitlement to benefits under a retirement pension plan (including a SME retirement pension fund plan; hereafter the same shall apply in this Article) shall neither be transferred nor be offered as collateral to another person. <Amended on Apr. 13, 2021> |
| (2) | Notwithstanding paragraph (1), a participant may provide an entitlement to benefits under a retirement pension plan as collateral to the extent prescribed by Presidential Decree, if he or she meets the grounds and conditions prescribed by Presidential Decree, such as a housing purchase. In such cases, a retirement pension trustee registered under Article 26 (referring to the Korea Workers' Compensation and Welfare Service under Article 10 of the Industrial Accident Compensation Insurance Act (hereinafter referred to as the "COMWEL"), in cases of SME retirement pension fund plans) shall cooperate with the participant so that the participant can take the loan with the offered benefits as collateral. <Amended on Apr. 13, 2021> |
| Article 8 (Establishment of Retirement Allowance Systems) |
| (1) | Any employer who intends to establish a retirement allowance system shall establish a system that makes it possible to pay a retiring employee a prorated amount equivalent to average wages earned for 30 days for each year of his or her continuous service. |
| (2) | Notwithstanding paragraph (1), any employer may, upon request by an employee due to a ground prescribed by Presidential Decree, such as housing purchases, pay such employee a retirement allowance for his or her continuous service period prior to his or her retirement. In such cases, the continuous service period to be used for the calculation of the amount of a retirement allowance accumulated thereafter shall be reckoned anew from the time when the balance is settled. |
| Article 9 (Payment of Retirement Allowances) |
| (1) | Where an employee retires, the employer shall pay such employee a retirement allowance within 14 days from the date when the grounds for payment occurs: Provided, That the payment deadline may be delayed under an agreement between the parties concerned, in extraordinary circumstances. <Amended on Apr. 13, 2021> |
| (2) | The retirement allowances prescribed in paragraph (1) shall be paid by transfer to the account of individual retirement pension plan designated by employees or the account under Article 23-8 (hereinafter referred to as "account of individual retirement pension plan, etc."): Provided, That the same shall not apply where any other grounds prescribed by Presidential Decree exist, such as where an employee receives benefits after retirement at the age of 55 or over. <Newly Inserted on Apr. 13, 2021> |
| (3) | Where an employee fails to designate an account of individual retirement pension plan, etc. under paragraph (2), the employer shall transfer the retirement allowances to the account of individual retirement pension plan in the name of the employee. <Newly Inserted on Apr. 13, 2021> |
[Title Amended on Apr. 13, 2021]
| Article 10 (Extinctive Prescription of Retirement Allowances) |
If an entitlement to receive a retirement allowance under this Act has not been exercised within three years, the extinctive prescription of such entitlement shall be complete.
| Article 11 (Treatment of Non-Establishment of Retirement Benefit Scheme) |
Notwithstanding the main clause of Article 4 (1) and Article 5, if any employer fails to establish a retirement benefit scheme or an individual retirement pension scheme under Article 25 (1), such employer shall be deemed to have established a retirement allowance system under Article 8 (1).
| Article 12 (Preferential Payment of Retirement Benefits) |
| (1) | Retirement allowances that an employer is obligated to pay, benefits under a defined benefit plan prescribed in Article 15, delinquent contributions and interest for arrears on delinquent contributions under a defined contribution plan prescribed in Article 20 (3), delinquent contributions and interest for arrears on delinquent contributions under a SME retirement pension fund plan prescribed in Article 23-7 (1), and delinquent contributions and interest for arrears on delinquent contributions under an individual retirement pension plan prescribed in Article 25 (2) 4 (hereinafter referred to as "retirement benefits, etc.") shall be paid in preference to taxes, public charges, and other claims, except for claims secured by pledges or mortgages on the whole property of the employer: Provided, That this shall not apply to taxes and public charges taking precedence over pledges or mortgages. <Amended on Apr. 13, 2021> |
| (2) | Notwithstanding paragraph (1), retirement benefits, etc. for the final three years of service shall be paid in preference to claims secured by pledges or mortgages, or to taxes, public charges, and other claims on the whole property of an employer. |
| (3) | The amount of retirement allowances of the retirement benefits, etc. and the amount of benefits under a defined benefit plan as prescribed in Article 15 shall be a prorated amount equal to the average wages earned for 30 days for each year of continuous service. |
| (4) | The amount of contributions under a defined contribution plan prescribed in Article 20 (1), contributions under a SME retirement pension fund plan prescribed in Article 23-7 (1), and contributions under an individual retirement pension plan prescribed in Article 25 (2) 2, out of retirement benefits, etc., shall be an amount equal to 1/12 of the total annual wages of the participant. <Amended on Apr. 13, 2021> |
CHAPTER III DEFINED BENEFIT PLANS
| Article 13 (Establishment of Defined Benefit Plans) |
Any employer who intends to establish a defined benefit plan shall prepare the rules for defined benefit plan stipulating the following matters with the consent of, or after seeking opinions from, the representatives of employees under Article 4 (3) or Article 5 and shall report such rules to the Minister of Employment and Labor: <Amended on Apr. 13, 2021> | 1. | Matters relating to the selection of a retirement pension trustee; |
| 2. | Matters relating to participants; |
| 3. | Matters relating to the period of contribution; |
| 4. | Matters relating to the amount of benefits; |
| 5. | Matters relating to the securing of ability to pay benefits; |
| 6. | Matters relating to the types of benefits, eligibility requirements, etc. of recipients; |
| 7. | Matters relating to the conclusion and termination of contracts to provide operational management services under Article 28 and asset management services under Article 29, and transfer of contracts following the termination thereof; |
| 8. | Matters relating to notification of the current state of operation; |
| 9. | Matters relating to the occurrence of a ground for the payment of benefits, such as the retirement of a participant, and procedures for the payment of benefits; |
| 10. | Matters relating to the grounds, procedures, etc. for the abolition and suspension of the retirement pension plan; |
| 10-2. | Matters relating to the calculation and payment of contributions; |
| 11. | Other matters prescribed by Presidential Decree to operate the defined benefit plan. |
| Article 14 (Contribution Period) |
| (1) | The period of contribution prescribed in subparagraph 3 of Article 13 shall be the period of service in the business concerned since the establishment of the retirement pension plan. |
| (2) | The period of service before the establishment of the retirement pension plan concerned may be included in the period of contribution. In such cases, the period for which a retirement allowance is settled in advance under Article 8 (2) shall be excluded therefrom. |
| Article 15 (Amount of Benefits) |
The amount of benefits referred to in subparagraph 4 of Article 13 shall be estimated in a way that the lump-sum benefits calculated based on the retirement date of a participant amount to the average wages earned for at least 30 days for each year of continuous service. <Amended on Apr. 13, 2021>
| Article 16 (Securing of Ability to Pay Benefits) |
| (1) | In order to secure the ability to pay benefits, an employer who has established a defined benefit plan shall reserve at the end of each business year an amount which is not less than the amount obtained by multiplying the larger of the following amounts (hereinafter referred to as "standard policy reserve") by the rate prescribed by Presidential Decree, which is not less than 60/100 (hereinafter referred to as "minimum reserve"): Provided, That where the period of service before the establishment of the retirement pension plan concerned is included in the period of contribution under Article 14 (2), the rate shall comply with the one prescribed by Presidential Decree: |
| 1. | The amount calculated by the method prescribed by Ordinance of the Ministry of Employment and Labor, which is obtained by deducting the present value of the estimated revenues accruing from contributions for the future period of service from the present value of the estimated expenses incurred in paying benefits for the contribution period until the estimated time of retirement; |
| 2. | The amount calculated by the method prescribed by Ordinance of the Ministry of Employment and Labor, using the estimated expenses incurred in paying benefits for the contribution period until the last day of the business year concerned of a person who is or was a participant. |
| (2) | A retirement pension trustee who operates and manages a defined benefit plan shall ascertain whether the reserve calculated as prescribed by Ordinance of the Ministry of Employment and Labor exceeds the minimum reserve and shall notify the employer of the result thereof as prescribed by Presidential Decree within six months after the end of each business year: Provided, That he or she shall also inform the representatives of employees of the results of ascertainment, if said reserve falls short of the minimum reserve. <Amended on May 26, 2020> |
| (3) | If the reserve is found to fall short of the minimum reserve prescribed by Presidential Decree as a result of ascertainment under paragraph (2), the employer shall make up for a deficiency in the reserve as prescribed by Presidential Decree. |
| (4) | In the event that the reserve at the end of each business year is found to exceed the standard policy reserve as a result of ascertainment prescribed in paragraph (2), the exceeding portion may be offset against the contributions to be paid in the future, and where the reserve at the end of each business year exceeds 150/100 of the standard policy reserve, the exceeding portion may be refunded to the employer, if requested by the employer. |
| Article 17 (Types of Benefits and Eligibility Requirements of Recipients) |
| (1) | The types of benefits under a defined benefit plan shall be either an annuity or a lump-sum benefit, and the eligibility requirements of recipients shall be as follows: |
| 1. | Annuities shall be paid to persons aged 55 or over, whose contribution period exceeds 10 years. In such cases, the payment period thereof shall exceed five years; |
| 2. | Lump-sum benefits shall be paid to participants who fail to meet the eligibility requirements to receive annuities or wish to receive lump-sum benefits. |
| (2) | An employer shall ensure that a retirement pension trustee pays all the benefits that it is obligated to pay within the limit of the reserve (in cases of bankruptcy of a business or other cases prescribed by Presidential Decree, the amount corresponding to the rate of the reserve to the amount prescribed in Article 16 (1) 2) within 14 days after a ground for the payment occurs as prescribed in paragraph (1), such as retirement of the participant: Provided, That in extraordinary circumstances, such as where the sale of the employed assets that have been invested with the reserve under a retirement pension plan is not made within a short period of time, the payment date may be extended by agreement among the employer, participants, and the retirement pension trustee. |
| (3) | When the amount of benefits paid by a retirement pension trustee under paragraph (2) falls short of the amount of benefits prescribed in Article 15, the employer shall pay the deficiency to the relevant employee within 14 days after a ground for the payment of benefits occurs. In such cases, the payment date may be extended by agreement between the parties. |
| (4) | The benefits under paragraph (2) or (3) shall be paid by transfer to the account of an individual retirement pension plan, etc. designated by each participant: Provided, That this shall not apply where any grounds prescribed by Presidential Decree exist, such as where a participant receives benefits after retirement at the age of 55 or over. <Amended on Apr. 13, 2021> |
| (5) | Where a participant fails to designate an account of an individual retirement pension plan, etc. under paragraph (4), the benefits shall be transferred to an account of an individual retirement pension plan in the name of the participant. In such cases, the participant shall be deemed to have established an individual retirement pension plan at the relevant retirement pension trustee. <Amended on Apr. 13, 2021> |
| Article 18 (Notification of Current Status of Operation) |
Each retirement pension trustee shall notify participants of the amount of reserve, rate of returns, etc. at least once every year, as prescribed by Ordinance of the Ministry of Employment and Labor.
| Article 18-2 (Composition of Reserve Fund Operating Committee) |
| (1) | The employer of business employing at least 300 regular employees shall compose a reserve operating committee as prescribed by Presidential Decree, to operate the reserve of the retirement pension plan more reasonably. <Amended on Apr. 13, 2021> |
| (2) | The employer referred to in paragraph (1) shall operate the reserve in accordance with a reserve operation plan deliberated by the reserve operating committee. In such cases, the reserve operation plan shall be prepared at least once every year, including matters prescribed by Presidential Decree, such as the purpose and method of operation of the reserve, target profit rate, and evaluation of the operational performance. <Amended on Apr. 13, 2021> |
[This Article Newly Inserted on Apr. 13, 2021]
CHAPTER IV DEFINED CONTRIBUTION PLANS
| Article 19 (Establishment of Defined Contribution Plans) |
| (1) | Any employer who intends to establish a defined contribution plan shall prepare the rules for defined contribution plan containing the following matters after obtaining the consent of, or seeking opinions from, the representatives of employees pursuant to Article 4 (3) or Article 5 and shall report such rules to the Minister of Employment and Labor: <Amended on Apr. 13, 2021; Jan. 11, 2022> |
| 1. | Matters relating to the allocation of contributions; |
| 2. | Matters relating to the calculation and payment of contributions; |
| 3. | Matters relating to the operation of reserves; |
| 4. | Matters relating to the methods of operating reserves, supply of information, etc.; |
| 4-2. | Matters relating to the default option scheme; |
| 5. | Matters relating to early withdrawal; |
| 6. | Matters relating to subparagraphs 1 through 3 and 6 through 10 of Article 13; |
| 7. | Other matters prescribed by Presidential Decree as necessary to operate the defined contribution plan. |
| (2) | Where a defined contribution plan is established under paragraph (1), Article 14 shall apply mutatis mutandis to the period of contribution, Article 17 (1), (4) and (5) to the types of benefits, eligibility requirements for recipients and the procedures for and methods of paying benefits, and Article 18 to the notification of current status of operation. In such cases, "subparagraph 3 of Article 13" in Article 14 (1) shall be construed as "subparagraph 6 of Article 19, and "defined benefit plan" in Article 17 (1) as "defined contribution plan". |
| Article 20 (Allocation and Payment of Contributions) |
| (1) | An employer who has established a defined contribution plan shall contribute no less than an amount equivalent to 1/12 of the total annual wages of a participant in cash to the participant's account of the defined contribution plan. |
| (2) | Apart from the amount contributed by the employer under paragraph (1), a participant may contribute an additional amount at his or her own expense to his or her account of the defined contribution plan. |
| (3) | An employer shall regularly pay contributions as prescribed in paragraph (1) at least once every year to the accounts of participants of the defined contribution plan. In such cases, if the employer fails to pay contributions by the fixed date (where the extension of the due date is allowed by the rules for defined contribution plan, by the due date so extended), he or she shall be liable to pay interest for arrears at an interest rate prescribed by Presidential Decree within the limit of 40/100 per annum, taking into consideration the overdue interest rates applied by banks as defined in the Banking Act, economic environment, etc. for the number of days of delay from the following day to the date when the contribution is paid. |
| (4) | If the payment of contributions is delayed by an employer due to a natural disaster or any other cause prescribed by Presidential Decree, paragraph (3) shall not apply to the period during which such cause exists. |
| (5) | If an employer fails to pay a contribution for a participant of a defined contribution plan when any cause prescribed by Presidential Decree, such as retirement of the participant, occurs, he or she shall pay the contribution prescribed in paragraph (1) and the interest for arrears prescribed in the latter part of paragraph (3) to the relevant participant's account of the defined contribution plan within 14 days from the date such cause occurs: Provided, That the due date may be extended by agreement between the parties concerned, in extraordinary circumstances. |
| (6) | In lieu of the benefits to be received at the time of retirement, a participant may request the retirement pension trustee concerned to transfer his or her invested assets to his or her account of the individual retirement pension plan that he or she has established. |
| (7) | Upon request by a participant under paragraph (6), the retirement pension trustee concerned shall transfer the invested assets to the participant's account of the individual retirement pension plan. In such cases, the participant's benefits accrued from the operation of the defined contribution plan shall be deemed paid. |
| Article 21 (Methods of Operating Reserves and Supply of Information) |
| (1) | A participant of a defined contribution plan shall be allowed to choose an operating method for himself or herself and change the method of operating reserves at least once every half-year. |
| (2) | A retirement pension trustee shall suggest at least three operating methods with different risk and return structures at least once every half year. |
| (3) | A retirement pension trustee shall supply information required by a participant to choose a method of operating reserves, such as information on the probability of making profits and losses for each operating method. |
| Article 21-2 (Establishment of Default Option Scheme) |
| (1) | A retirement pension trustee providing operational management services shall include at least one type of operation specified in the following subparagraphs in the default option management plan and obtain approval from the Minister of Employment and Labor: |
| 1. | A type of operation that guarantees the principal and interest of the reserve; |
| 2. | A type of operation that is collective investment securities of a collective investment scheme under Article 229 of the Financial Investment Services and Capital Markets Act, which meets the requirements prescribed by Presidential Decree, such as where any of the following operational details in the investment prospectus is clearly stated in the operation plan: |
| (a) | Details of operation including adjustment of asset allocation or the risk level in the direction of increasing the proportion of assets with low investment risk as the operation period elapses after a prior setting of the targeted investment time; |
| (b) | Details of operation including the risk management of collective investment property and pursuit of a long-term value growth through diversification of assets with different investment risks and periodical adjustment of asset allocation in consideration of the financial market conditions, the changing value of each collective investment property, etc.; |
| (c) | Details of operation to minimize the possibility of loss and to pursue short-term stable earnings of the collective investment property through investment in short-term financial instruments, etc.; |
| (d) | Details of operation that meet the requirements prescribed by Ordinance of the Ministry of Employment and Labor, such as investment in the infrastructure business under the public investment plans and related projects and policies implemented by the State and local governments under the relevant statutes or regulations including the Act on Public-Private Partnerships in Infrastructure; |
| (e) | Other details of operation prescribed by Presidential Decree. |
| (2) | Where a retirement pension trustee intends to obtain approval from the Minister of Employment and Labor pursuant to paragraph (1), he or she shall undergo a prior deliberation by a deliberative committee of the Minister of Employment and Labor that is comprised of members, including retirement pension-related experts recognized to have extensive knowledge of and experience in retirement pension and asset management, according to the requirements prescribed by Ordinance of the Ministry of Employment and Labor. |
| (3) | A retirement pension trustee providing operational management services shall present the default option management plan to an employer in accordance with the methods prescribed by Ordinance of the Ministry of Employment and Labor. |
| (4) | The type of operation under paragraph (1) 2 shall maintain a reasonable balance between the possibility of loss and the expected earnings in a mid- to long-term perspective, and shall not have the cost including fees in excess of the expected earnings. |
| (5) | An employer who has been presented a default option management plan under paragraph (3) shall establish a default option management plan for each business or workplace, and shall reflect it in the rules for defined contribution plan with the consent of the representatives of employees. |
[This Article Newly Inserted on Jan. 11, 2022]
| Article 21-3 (Operation of Default Option Scheme) |
| (1) | A retirement pension trustee providing operational management services shall provide the participants of business that establishes a default option scheme with information on the following matters, as prescribed by Presidential Decree: |
| 1. | Current status of asset allocation and risk and profit-making structures of the relevant default option management plan; |
| 2. | Matters specified in paragraphs (2) through (5); |
| 3. | Other matters prescribed by Presidential Decree regarding the operation of the default option scheme. |
| (2) | A participant shall select one of the default option management plans on which information is provided under paragraph (1) as the one applicable to himself or herself: Provided, That where the type of operation specified in Article 21-2 (1) 2 is only selected as a default option management plan, the details of operation specified in item (a) or (b) of the same subparagraph shall be included therein. |
| (3) | Where a participant who falls under any of the following subparagraphs fails to voluntarily select an operating method, a retirement pension trustee providing operational management services shall notify the participant that the reserve will be operated in accordance with the default option management plan: |
| 1. | Where a participant joins the defined contribution plan; |
| 2. | Where four weeks elapse from the expiration date of operation method of the reserve voluntarily selected by the participant pursuant to Article 21 (1). |
| (4) | Where a participant fails to select an operating method voluntarily within two weeks from receipt of notice under paragraph (3), a retirement pension trustee providing operational management services shall operate the reserve of the relevant participant by the default option management plan. In such cases, it shall be deemed that the participant has voluntarily selected the default option management plan as an operating method. |
| (5) | A participant who operates the reserves by the default option management plan may voluntarily select an operating method of the reserve pursuant to Article 21 (1) at any time. |
| (6) | A retirement pension trustee providing operational management services may change the default option management plan upon obtaining approval from the Minister of Employment and Labor. In such cases, the reserves of the participant operated by the relevant default option management plan may be operated in accordance with the default option management plan that is modified through the procedures prescribed by Presidential Decree, such as notification to the participant. |
| (7) | The publication of operational status of the default option management plan and the rate of returns, the notice of a termination method, the revocation of approval and transfer of accumulated funds accompanied thereto, and other matters necessary for operation of the default option scheme shall be prescribed by Presidential Decree. |
[This Article Newly Inserted on Jan. 11, 2022]
| Article 21-4 (Selection of Default Option Management Plan by Participants) |
| (1) | A participant of a defined contribution plan who does not operate the reserve by the default option management plan may select any of the operational types prescribed in subparagraphs of Article 21-2 (1) from among the default option management plans of a retirement pension trustee providing operational management services, as a default option management plan: Provided, That where the participant selects only the operation type specified in Article 21-2 (1) 2 as the default option management plan, the details of operation prescribed in item (a) or (b) of the same subparagraph shall be included therein. |
| (2) | Where the default option management plan selected by a participant under paragraph (1) is modified under the former part of Article 21-3 (6), a retirement pension trustee providing operational management services may operate the reserves of the participant according to a default option management plan that is modified through the procedures prescribed by Presidential Decree, such as notification to the participant. |
[This Article Newly Inserted on Jan. 11, 2022]
| Article 22 (Early Withdrawal of Reserves) |
A participant of a defined contribution plan may withdraw his or her reserves early when a ground prescribed by Presidential Decree, such as housing purchases, occurs.
| Article 23 (Establishment of Defined Contribution Plan Participated by at Least Two Employers) |
Where a retirement pension trustee intends to suggest to establish the same defined contribution plan for at least two employers, he or she shall obtain approval from the Minister of Employment and Labor for each of the following matters:
| 1. | Standard rules for the defined contribution plan including the following matters: |
| (a) | Matters set forth in the subparagraphs of Article 19 (1); |
| (b) | Other matters prescribed by Presidential Decree; |
| 2. | Standard contracts for operational management services and asset management services, which contain the matters prescribed by Presidential Decree. |
CHAPTER IV-2 SME RETIREMENT PENSION FUND PLAN
| Article 23-2 (Operation of SME Retirement Pension Fund Plan) |
| (1) | The SME retirement pension fund plan shall be operated by the COMWEL. |
| (2) | In order to deliberate and decide on the important matters related to the operation of the SME retirement pension fund plan, an operating committee for the SME retirement pension fund plan (hereinafter referred to as "operating committee") shall be established in the COMWEL. |
| (3) | The president of the COMWEL shall serve as the chairperson of the operating committee. |
| (4) | The operating committee shall be comprised of the chairperson, members in general service of the Senior Executive Service of the Ministry of Employment and Labor who are in charge of duties related to retirement pension, and the following members commissioned by the chairperson. In such cases, the number of committee members including the chairperson shall be at least 10 but not more than 15, and the number of members falling under subparagraphs 2 and 3 shall be the same: |
| 1. | The executive vice-presidents of the COMWEL; |
| 2. | Persons who represent the employees; |
| 3. | Persons who represent the employers; |
| 4. | Experts specializing in retirement pension, who have extensive knowledge of and experience in retirement pension and asset management. |
| (5) | The committee members falling under paragraph (4) 2 through 4 who are commissioned by the chairperson shall hold office for a term of three years, and may be appointed consecutively for further terms: Provided, That the term of office for a member newly commissioned to fill a vacancy arising from resignation, etc. shall be the remainder of the term of office of his or her predecessor. |
| (6) | The operating committee shall deliberate and decide on the following matters: |
| 1. | Matters relating to the operation plan and guidelines for SME retirement pension fund; |
| 2. | Matters relating to the preparation and modification of the standard contract of SME retirement pension fund under Articles 23-5; |
| 3. | Matters relating to the level of fees under Article 23-6 (2); |
| 4. | Other matters referred by the chairperson to the meetings of the operating committee regarding major matters related to the operation of the SME retirement pension fund plan. |
| (7) | The chairperson may organize an advisory committee to support the operating committee regarding the operation, etc. of the SME retirement pension fund. |
| (8) | Other matters necessary for the composition, operation, etc. of the operating committee shall be prescribed by Presidential Decree. |
[This Article Newly Inserted on Apr. 13, 2021]
| Article 23-3 (Management and Operation of SME Retirement Pension Fund) |
| (1) | The COMWEL shall manage and operate the SME retirement pension fund in a manner prescribed by Presidential Decree for the stable operation and increase of profitability of the SME retirement pension fund. |
| (2) | The COMWEL shall keep the account for the SME retirement pension fund separately from other accounts of the COMWEL. |
[This Article Newly Inserted on Apr. 13, 2021]
| Article 23-4 (Utilization of Data) |
| 1. | Guidance for subscription for the workplaces eligible to join the SME retirement pension fund plan; |
| 2. | Affairs prescribed by Presidential Decree to promote the convenience of employers and employees among the affairs referred to in the subparagraphs of Article 23-5 (1). |
| (2) | Where the COMWEL requests data on the status of reporting on the rules for retirement pension plan under Articles 13 and 19 or reporting on abolishment of the rules for retirement pension plan under Article 38 to perform the duties under Article 23-14, the Minister of Employment and Labor may provide the relevant data. |
[This Article Newly Inserted on Apr. 13, 2021]
| Article 23-5 (Descriptions of Standard Contract of SME Retirement Pension Fund) |
| (1) | The COMWEL shall prepare a written contract stating the following matters (hereinafter referred to as "standard contract of SME retirement pension fund") and obtain approval thereof from the Minister of Employment and Labor: |
| 1. | Matters specified in subparagraphs 2, 3, 6, and 8 through 10 of Article 13; |
| 2. | Matters specified in Article 19 (1) 1 through 3 and 5; |
| 3. | Matters relating to management, operation, etc. of the SME retirement pension fund under Article 23-3; |
| 4. | Matters relating to the affairs of documentation, storage, and notification of the operational status of the reserve; |
| 5. | Matters relating to the establishment and management of accounts, receipt of contributions, storage and management of the reserves, and payment of benefits; |
| 6. | Other matters prescribed by Presidential Decree for the operation of the SME retirement pension fund plan. |
| (2) | If the COMWEL modifies the standard contract of SME retirement pension fund approved under paragraph (1), it shall obtain approval from the Minister of Employment and Labor: Provided, That if the modified content is not unfavorable to the employers and participants, the standard contract of SME retirement pension fund may be modified by reporting it to the Minister of Employment and Labor. |
| (3) | Matters necessary for the methods, procedures, etc. for approval or approval for modification under paragraphs (1) and (2) shall be prescribed by Presidential Decree. |
[This Article Newly Inserted on Apr. 13, 2021]
| Article 23-6 (Establishment of SME Retirement Pension Fund Plan) |
| (1) | The employer of a small or medium enterprise may establish a SME retirement pension fund plan by entering a contract with the COMWEL after obtaining the consent of, or seeking opinions from, the representatives of employees pursuant to Article 4 (3) or 5 with respect to matters stipulated in the standard contract of SME retirement pension fund under Article 23-5. |
| (2) | The COMWEL may impose fees for performing the affairs under Article 23-5 (1) 3 through 5 and Article 23-15 (1) on the employers and participants. |
| (3) | The COMWEL may require a person who fulfills the requirements prescribed by Presidential Decree, such as personnel and physical requirements, to perform the affairs prescribed by Presidential Decree among the affairs specified in Article 23-5 (1) 3 through 6. |
[This Article Newly Inserted on Apr. 13, 2021]
| Article 23-7 (Level of Contribution and Payment of Contributions) |
| (1) | An employer who has established the SME retirement pension fund plan shall pay, in cash, contributions equivalent to at least 1/12 of the total annual wages of a participant (hereinafter referred to as "employer contributions") into the account of the SME retirement pension fund plan of participants (hereinafter referred to as "employer contribution account of fund plan") regularly at least once every year. In such cases, if the employer fails to pay the contributions by the fixed due date (referring to the extended due date, if the payment due date is extended under the standard contract of SME retirement pension fund), he or she shall pay interest in arrears calculated according to the interest rate prescribed by Presidential Decree pursuant to the latter part of Article 20 (3) for the number of days delayed counting from the day immediately following the fixed due date until the actual payment date of contributions. |
| (2) | If an employer fails to pay contributions to a participant where grounds prescribed by Presidential Decree such as retirement of the participant of the SME retirement pension fund occur, he or she shall pay the contributions and the interest for arrears referred to in paragraph (1) into the employer contribution account of fund plan within 14 days from the date such cause occurs: Provided, That the payment due date may be extended by agreement between the parties, in extraordinary circumstance. |
| (3) | Article 20 (4) shall apply mutatis mutandis to the grounds for exclusion of the application of interest for arrears under paragraphs (1) and (2). |
| (4) | Other matters necessary for the methods, procedures, etc. of payment of employer contributions shall be prescribed by Presidential Decree. |
[This Article Newly Inserted on Apr. 13, 2021]
| Article 23-8 (Establishment of Participant Contribution Account of SME Retirement Pension Fund Plan) |
Any of the following persons who are participants of the SME retirement pension fund plan may establish a contribution account in the name of the participant (hereinafter referred to as "participant contribution account of fund plan"). In such cases, the COMWEL shall manage the participant contribution account separately from the employer contribution account of fund plan:
| 1. | A person who intends to receive the benefits under the SME retirement pension fund plan in a lump sum; |
| 2. | A person who intends to pay additional contributions at his or her own expense (hereinafter referred to as "participant contributions") other than employer contributions. |
[This Article Newly Inserted on Apr. 13, 2021]
| Article 23-9 (Contribution Period) |
In establishing the SME retirement pension fund plan, Article 14 shall apply mutatis mutandis to the period of contribution: Provided, That the participant contribution accounts of fund plan shall be from the date on which the relevant account is established to the date on which benefits are fully paid. [This Article Newly Inserted on Apr. 13, 2021]
| Article 23-10 (Provision of Information on Fund Operation) |
The COMWEL shall provide information on the possibility, etc. of profits and loss arising from the operation of the SME retirement pension fund to the participants of the SME retirement pension fund plan in a manner prescribed by Presidential Decree.
[This Article Newly Inserted on Apr. 13, 2021]
| Article 23-11 (Notification of Operational Status) |
Article 18 shall apply mutatis mutandis to notification of the operational status of the SME retirement pension fund plan for each participant. In such cases, "retirement pension trustee" shall be construed as "COMWEL". [This Article Newly Inserted on Apr. 13, 2021]
| Article 23-12 (Types of Benefits and Eligibility Requirements of Recipients) |
| (1) | The type of benefits and eligibility requirements of the SME retirement pension fund plan shall be as follows: |
| 1. | Article 17 (1) shall apply mutatis mutandis to the employer contribution account of the fund plan. In such cases, "defined benefit plan" shall be construed as "SME retirement pension fund plan"; |
| 2. | Matters relating to the participant contribution account of fund plan shall be prescribed by Presidential Decree. |
| (2) | The payment of benefits to participants from the employer contribution account of fund plan shall be made by means of transfer to the accounts, etc. of individual retirement pension plan designated by the participants: Provided, That where a participant does not designate an account, etc. of individual retirement pension plan, the benefits shall be transferred to the account of individual retirement pension plan in the name of the participant. |
| (3) | Other matters necessary for the payment, etc. of benefits shall be prescribed by Presidential Decree. |
[This Article Newly Inserted on Apr. 13, 2021]
| Article 23-13 (Early Withdrawal of Reserves) |
The following subparagraphs shall apply to early withdrawal of the reserves from the SME retirement pension fund plan:
| 1. | Article 22 shall apply mutatis mutandis to the employer contribution accounts of fund plan. In such cases, "defined contribution plan" shall be construed as "SME retirement pension fund plan"; |
| 2. | Article 24 (5) shall apply mutatis mutandis to the accounts of participant contribution of fund plan. In such cases, "individual retirement pension plan" shall be construed as "SME retirement pension fund plan". |
[This Article Newly Inserted on Apr. 13, 2021]
| Article 23-14 (Support by the State) |
| (1) | In order to relieve the financial burden of business that joins the SME retirement pension fund plan and to facilitate employees' subscription to the SME retirement pension, the State may partially subsidize the employer contributions, participant contributions, or expenses incurred in the operation of the SME retirement pension fund plan within the budget, if the business fulfills the requirements prescribed by the Minister of Employment and Labor. |
| (2) | Matters necessary for the subject matters of support, level of support, procedures for support, etc. under paragraph (1) shall be prescribed by Presidential Decree. |
| (3) | Where a person who has received support from the State pursuant to paragraph (1) falls under any of the following cases, the Minister of Employment and Labor may recover all or part of the subsidies, as prescribed by Presidential Decree: Provided, That where the amount of subsidies to be recovered (hereinafter referred to as "amount to be recovered") is less than the amount prescribed by Presidential Decree, such amount may not be recovered: |
| 1. | Where a person receives subsidies by fraud or other improper means; |
| 2. | Where subsidies were erroneously provided; |
| 3. | Where an employer discontinues the SME retirement pension fund plan without good cause prescribed by Presidential Decree, such as bankruptcy. |
| (4) | The COMWEL may collect the amount to be recovered under paragraph (3) in the same manner as delinquent national taxes are compulsorily collected. |
| (5) | In order to collect the amount to be recovered under paragraph (3), the COMWEL may request the head of a relevant institution to provide data prescribed by Presidential Decree, such as data on taxation of property tax under the Local Tax Act, or to utilize the related computer network. In such cases, the head of a relevant institution shall comply with such request unless there is good cause. |
| (6) | Any data to be provided to the COMWEL under paragraph (5) shall be exempted from fees, usage fees, etc. |
[This Article Newly Inserted on Apr. 13, 2021]
| Article 23-15 (Responsibilities of COMWEL) |
| (1) | The COMWEL shall provide training to the participants of the SME retirement pension plan fund at least once every year on the matters prescribed by Presidential Decree, such as the operational status of the SME retirement pension fund plan. |
| (2) | The COMWEL shall publish the details of performance, management status, return rate, etc. of the SME retirement pension fund plan each year, as prescribed by Presidential Decree. |
| (3) | If the details of the standard contract of SME retirement pension fund is modified, the COMWEL shall notify the employer and participants of such modification, as determined by the Minister of Employment and Labor. |
| (4) | Article 33 (1) through (4) shall apply mutatis mutandis to other matters regarding the responsibilities of the COMWEL. In such cases, "retirement pension trustee" shall be construed as "COMWEL", "terms and conditions of a contract under Articles 28 (1) and 29 (1)" as "terms and conditions of a contract under Article 23-5 (1)", and "refusing to conclude a contract to provide operational management services under Article 28 (1)" and "refusing to conclude a contract to provide asset management services under Article 29 (1)" as "refusing to conclude a contract under Article 23-6", respectively. |
[This Article Newly Inserted on Apr. 13, 2021]
| Article 23-16 (Guidance and Supervision) |
For the smooth operation of the SME retirement pension fund plan, the Minister of Employment and Labor may require the COMWEL to report the following matters or may instruct public officials under his or her jurisdiction to inspect the relevant accounting books, documents, and other articles, and may order corrective measures for the operation, etc. of the SME retirement pension fund plan, as prescribed by Presidential Decree, if deemed necessary:
| 1. | Matters relating to the actual status of the management and operation of the SME retirement pension fund plan of the COMWEL; |
| 2. | Matters relating to the management and operation of the SME retirement pension fund under Article 23-3. |
[This Article Newly Inserted on Apr. 13, 2021]
CHAPTER V INDIVIDUAL RETIREMENT PENSION PLANS
| Article 24 (Establishment and Operation of Individual Retirement Pension Plans) |
| (1) | Any retirement pension trustee may operate an individual retirement pension plan. |
| (2) | A person falling under any of the following subparagraphs may establish an individual retirement pension plan: <Amended on Apr. 13, 2021> |
| 1. | A person who has received lump-sum benefits under a retirement benefit scheme; |
| 2. | A participant of a defined benefit plan, a defined contribution plan, or a SME retirement pension fund plan, who intends to additionally establish an individual retirement pension plan at his or her own expense; |
| 3. | A person prescribed by Presidential Decree as requiring a stable source of old-age income, such as a sole proprietor. |
| (3) | A person who has established an individual retirement pension plan under paragraph (2) shall pay the contributions under the individual retirement plan at his or her own expense: Provided, That the amount to be contributed shall not exceed the limit prescribed by Presidential Decree. |
| (4) | Articles 21 and 21-2 through 21-4 shall apply mutatis mutandis to the operating method of the reserves of individual retirement pension plan and the provision of information on the operation of the reserves. In such cases, "defined contribution plan" shall be construed as "individual retirement pension plan". <Amended on Jan. 11, 2022> |
| (5) | Matters relating to eligibility requirements of recipients for each type of benefit of an individual retirement pension plan as well as early withdrawal shall be prescribed by Presidential Decree. |
| Article 25 (Special Cases for Businesses Employing Less Than 10 Employees) |
| (1) | In cases of a business employing less than 10 ordinary employees, if the employer establishes an individual retirement pension plan with the consent, or at the request, of individual employees, it shall be deemed to have established a retirement benefit scheme for the relevant employees, notwithstanding Articles 4 (1) and 5. |
| (2) | In establishing an individual retirement pension plan under paragraph (1), the following shall be complied with: |
| 1. | Where the employer selects a retirement pension trustee, he or she shall obtain the consent of individual employees: Provided, That he or she may select the retirement pension trustee for himself/herself, if requested by the employees; |
| 2. | The employer shall contribute, in cash, at least 1/12 of the total annual wages of each participant to the participant's account of individual retirement pension plan; |
| 3. | A participant shall be allowed to contribute additional amounts at his or her own expense, apart from those contributed by the employer; |
| 4. | The employer shall regularly pay contributions as prescribed in subparagraph 2 to the participant's account of an individual retirement pension plan at least once every year. In such cases, the latter part of Article 20 (3) and Article 20 (4) shall apply mutatis mutandis to the payment of interest on arrears of contributions, the payment of which is delayed; |
| 5. | Any other matter prescribed by Presidential Decree in order to protect employees' entitlement to receive benefits. |
| (3) | Where an employer fails to pay a contribution as prescribed in paragraph (2) 2 for a participant of an individual retirement pension plan when any cause prescribed by Presidential Decree, such as retirement of the participant, occurs, he or she shall pay the contribution and the interest for arrears prescribed in the latter part of paragraph (2) 4 to the relevant participant's account of the individual retirement pension plan within 14 days from the date such cause occurs: Provided, That the due date may be extended by agreement between the parties concerned, in extraordinary circumstances. |
CHAPTER VI RETIREMENT PENSION TRUSTEES AND THEIR PERFORMANCE OF DUTIES
| Article 26 (Registration of Retirement Pension Trustees) |
Any of the following persons who intends to be a retirement pension trustee shall file for registration with the Minister of Employment and Labor after meeting the requirements prescribed by Presidential Decree, such as financial soundness, and personnel and physical resource requirements: <Amended on May 26, 2020; Apr. 13, 2021>
| 6. | The COMWEL (the eligibility to retirement pension programs of the COMWEL shall be limited to business employing not more than 30 regular employees); |
| 7. | Other persons falling under subparagraphs 1 through 6 who are prescribed by Presidential Decree. |
| Article 27 (Revocation of Registration of Retirement Pension Trustees and Transfer Orders) |
| (1) | If a retirement pension trustee falls under any of the following subparagraphs, the Minister of Employment and Labor may issue a corrective order or revoke his or her registration as prescribed by Ordinance of the Ministry of Employment and Labor: Provided, That where it falls under subparagraph 1 or 2, he or she shall revoke its registration: |
| 1. | Where the retirement pension trustee is dissolved; |
| 2. | Where the retirement pension trustee obtains registration under Article 26 by fraudulent or other illegal means; |
| 3. | Where the retirement pension trustee fails to meet the requirements for registration under Article 26; |
| 4. | Where the retirement pension trustee fails to comply with an order issued by the Minister of Employment and Labor or the Financial Services Commission pursuant to Article 36. |
| (2) | No retirement pension trustee whose registration is revoked pursuant to paragraph (1) shall be eligible to register as a retirement pension trustee for three years from the date the registration is revoked. |
| (3) | A retirement pension trustee who intends to discontinue the business related to a retirement pension plan shall apply for the cancellation of registration to the Minister of Employment and Labor. In such cases, a retirement pension trustee whose registration is canceled shall not be eligible to register as a retirement pension trustee for two years from the date the registration is canceled. |
| (4) | A retirement pension trustee who has been subject to a disposition of revocation of registration or applied for cancellation of registration under paragraph (1) or (3) shall take measures prescribed by Presidential Decree to protect the participants, including measures necessary to transfer the established retirement pension plans. |
| (5) | If the Minister of Employment and Labor deems it necessary to protect employees' entitlement to receive benefits when registration is revoked or canceled pursuant to paragraph (1) or (3), he or she may order the retirement pension trustee whose registration is revoked or canceled to transfer all or part of his or her services to another retirement pension trustee. In such cases, the Minister of Employment and Labor shall obtain the consent of the retirement pension trustee to whom all or part of such services is transferred. |
| Article 28 (Conclusion of Contract on Operational Management Services) |
| (1) | Each employer or participant who intends to establish a retirement pension plan shall conclude a contract with a retirement pension trustee on the provision of the following services (hereinafter referred to as "operational management services"): Provided, That services specified in subparagraph 1-2 shall apply only where a defined contribution plan is established, and services specified in subparagraph 2 shall apply only where a defined benefit plan is established: <Amended on Apr. 13, 2021; Jan. 11, 2022> |
| 1. | Providing the employer or participants with the methods of operating reserves and information on each operating method; |
| 1-2. | Establishing and operating the default option scheme; |
| 2. | Designing a pension plan and conducting pension accounting; |
| 3. | Recording, keeping, and informing the current operational state of reserves; |
| 4. | Informing a retirement pension trustee providing asset management services pursuant to Article 29 (1), of the operating method chosen by the employer or participants; |
| 5. | Any other service prescribed by Presidential Decree to ensure the adequate provision of operational management services. |
| (2) | A retirement pension trustee providing operational management services pursuant to paragraph (1) may have a person who meets the requirements prescribed by Presidential Decree, such as personnel and physical resource requirements, provide some of the services prescribed by Presidential Decree. |
| Article 29 (Conclusion of Contract on Asset Management Services) |
| (1) | Each employer or participant who has established a retirement pension plan shall conclude a contract with a retirement pension trustee on the provision of the following services (hereinafter referred to as "asset management services"): |
| 1. | Setting up and managing an account; |
| 2. | Receiving contributions; |
| 3. | Keeping and managing reserves; |
| 4. | Following instructions related to the operation of the reserves which are delivered by a retirement pension trustee providing operational management services; |
| 6. | Any other service prescribed by Presidential Decree to ensure the adequate provision of asset management services. |
| (2) | If an employer or a participant intends to conclude a contract as prescribed in paragraph (1), it shall be made in terms of an insurance contract or trust contract prescribed by Presidential Decree with his or her employees or the participant as the insured or beneficiaries. |
| (1) | A retirement pension trustee shall reasonably determine the amount of fees that are receivable from employers and participants according to the performance of operational management services, asset management services, and other services prescribed by Presidential Decree, in consideration of expenses incurred in the performance of the relevant services, profits and losses incurred in the operation of the reserves, etc. |
| (2) | The fees payable by employers and participants under paragraph (1) shall comply with the standards for imposition, etc. prescribed by Presidential Decree. |
| (3) | The Minister of Employment and Labor may request a retirement pension trustee to submit data prescribed by Presidential Decree, such as the standards for imposition of fees, to protect a participant's entitlement to benefits. |
[This Article Newly Inserted on Jan. 11, 2022]
| Article 30 (Provision of Operational Management Services) |
| (1) | Each retirement pension trustee shall fulfill his or her duty of due care as a good manager. |
| (2) | Each retirement pension trustee shall suggest methods of operating reserves meeting the following requirements: |
| 1. | Information on the operating methods shall be readily obtainable and understandable; |
| 2. | It shall be easy to switch among the operating methods; |
| 3. | The methods of and procedures for evaluating the performance of operation of reserve shall be transparent; |
| 4. | In cases of defined contribution plans and individual retirement pension plans, at least one operating method guaranteeing the payment of principal and interest as prescribed by Presidential Decree shall be included; |
| 5. | They shall be in line with the operating methods and standards prescribed by Presidential Decree, such as diversified investment, to ensure the mid- and long-term stable operation of the reserves. |
| Article 31 (Entrustment of Solicitation Services) |
| (1) | A retirement pension trustee may entrust any person who satisfies all the following requirements (hereinafter referred to as "solicitor for retirement pension plans") with the services prescribed by Presidential Decree to establish retirement pension plans or solicit participants thereof (hereinafter referred to as "solicitation services"): <Amended on May 26, 2020> |
| 1. | He or she shall not be a person registered with the Minister of Employment and Labor pursuant to paragraph (2); |
| 2. | He or she shall have professional knowledge and satisfy the requirements prescribed by Presidential Decree; |
| 3. | Where the registration was revoked under paragraph (6), at least three years shall have passed since the date the registration was revoked. |
| (2) | Where a retirement pension trustee entrusts the solicitation services for retirement pension plans under paragraph (1), he or she shall register the entrusted person with the Minister of Employment and Labor. In such cases, the Minister of Employment and Labor may entrust such registration affairs to an agency prescribed by the Ministry of Employment and Labor, as prescribed by Presidential Decree. |
| (3) | A person entrusted with solicitation services under paragraph (1) shall be prohibited from engaging in the solicitation services of retirement pension plans unless he or she is registered under paragraph (2). |
| (4) | No retirement pension trustee shall entrust any person with solicitation services other than those registered under paragraph (2) as solicitors for retirement pension plans. |
| (5) | Matters necessary for the application, methods and procedures for registration, and any other matters for registration under paragraph (2) shall be prescribed by the Minister of Employment and Labor. |
| (6) | In any of the following cases, the Minister of Employment and Labor may revoke the registration of a solicitor of retirement pension plans registered under paragraph (2) or suspend his or her solicitation services within the limit of six months: |
| 1. | Where he or she fails to satisfy each of the requirements prescribed in paragraph (1); |
| 2. | Where he or she violates any of the matters to be observed by the entrusted person under each subparagraph of paragraph (7). |
| (7) | Where services are entrusted under paragraph (1), the entrusted person shall comply with the following: |
| 1. | He or she shall not re-entrust another person with the entrusted services; |
| 2. | Matters prescribed by Presidential Decree as necessary for the reasonable operation of retirement pension plans, such as prohibition of solicitation activities based on false information. |
| (8) | If a person entrusted with the solicitation services under paragraph (1) fails to comply with the matters to be observed under paragraph (7), the retirement pension trustee shall revoke the entrustment of solicitation services. |
| (9) | A retirement pension trustee shall manage solicitors for retirement pension plans in good faith so that they observe statutes or regulations; cause no harm to the sound trade order when providing the solicitation services; and establish standards for providing solicitation services for such purpose. <Amended on May 26, 2020> |
| (10) | Article 756 of the Civil Act shall apply mutatis mutandis where any solicitor for retirement pension plans causes any damage to an employer or a participant while providing solicitation services. <Amended on May 26, 2020> |
CHAPTER VII RESPONSIBILITIES AND SUPERVISION
| Article 32 (Responsibilities of Employers) |
| (1) | Each employer shall observe the statutes or regulations, the rules for retirement pension plan, or the standard contract of SME retirement pension fund, and shall faithfully perform the duties under this Act with respect to matters for participants, etc. prescribed by Presidential Decree. <Amended on Apr. 13, 2021> |
| (2) | Each employer who has established a defined benefit plan or a defined contribution plan shall provide training on the matters prescribed by Presidential Decree, such as the operational status of the retirement pension plan of the relevant business, to the participants at least once every year. In such cases, the employer may entrust such training to a retirement pension trustee or a specialized institution satisfying the requirements prescribed by Presidential Decree. <Amended on Apr. 13, 2021> |
| (3) | Matters necessary for the details, methods, etc. of training under paragraph (2) shall be prescribed by Presidential Decree. <Newly Inserted on Apr. 13, 2021> |
| (4) | No employer who has established a retirement pension plan shall commit any of the following acts: <Amended on Apr. 13, 2021> |
| 1. | Concluding a contract to provide operational management services or asset management services for the purpose of benefiting the employer itself or a third person; |
| 2. | Any other act prescribed by Presidential Decree that undermines the appropriate operation of the retirement pension. |
| (5) | An employer who has established a defined benefit plan or a retirement allowance scheme shall inform his or her employees in advance that retirement benefits may be reduced and shall take other necessary measures to prevent the reduction of retirement benefits of employees through consultation with the representatives of employees, such as conversion to a defined contribution plan or to a SME retirement pension fund plan, and improvement of the criteria for calculation of retirement benefits, in any of the following cases: <Newly Inserted on Jun. 12, 2018; Apr. 13, 2021> |
| 1. | Where the employer intends to implement a plan to extend or guarantee the retirement age by adjusting the wages of employees based on a certain age, point of continuous service, or amount of wages through collective agreements, employment rules, etc.; |
| 2. | Where an employee continues to work shorter contractual work hours for at least three months as the employer shortens the contractual work hours by at least one hour a day or five hours a week under agreement with the employee; |
| 3. | Where an employee receives reduced wages due to shortened work hours as the Labor Standards Act (Act No. 15513) enters into force; |
| 4. | Other cases where wages are reduced as prescribed by Ordinance of the Ministry of Employment and Labor. |
| Article 33 (Responsibilities of Retirement Pension Trustees) |
| (1) | Each retirement pension trustee shall observe this Act and shall provide his or her services in good faith for the sake of participants. |
| (2) | Each retirement pension trustee shall observe the terms and conditions of the contracts prescribed in Articles 28 (1) and 29 (1). |
| (3) | No retirement pension trustee shall engage in any of the following acts without justifiable grounds: |
| 1. | Refusing to conclude a contract to provide operational management services under Article 28 (1); |
| 2. | Refusing to conclude a contract to provide asset management services under Article 29 (1); |
| 3. | Compelling a contract to be signed with a particular retirement pension trustee; |
| 4. | Any other act prescribed by Presidential Decree as likely to undermine the interests of an employer or participant. |
| (4) | No retirement pension trustee providing operational management services shall engage in any of the following acts: |
| 1. | Bearing or promising to bear all or some of the losses suffered by a participant or an employer at the time of signing a contract; |
| 2. | Providing or promising to provide a participant or an employer with any extraordinary benefit prescribed by Presidential Decree, such as providing excessive supplementary services having economic value or bearing the expenses to be borne by a participant or an employer; |
| 3. | Using personal data such as the name and address of a participant beyond the extent necessary to perform duties related to the operation of the retirement pension plan; |
| 4. | Suggesting a particular operating method to a participant or an employer for the purpose of benefiting the retirement pension trustee himself/herself or a third person. |
| (5) | Each retirement pension trustee operating individual retirement pension plans pursuant to Article 24 (1) shall provide the participants with training at least once every year on matters prescribed by Presidential Decree, such as the operating status of the retirement pension plan of the business concerned. |
| (6) | Each retirement pension trustee shall submit details on the performance of retirement pension plans to the employers (excluding the performance of individual retirement pension plans), the Minister of Employment and Labor, and the Governor of the Financial Services Commission, as prescribed by Ordinance of the Ministry of Employment and Labor. |
| (7) | Where any retirement pension trustee intends to establish or amend the terms and conditions or the standard contract relating to the signing of a contract pursuant to Article 28 (1) or 29 (1) (hereinafter referred to as "terms and conditions, etc."), he or she shall, in advance, report such establishment or amendment to the Governor of the Financial Services Commission: Provided, That where it is determined by the Financial Services Commission as having no adverse effect on the rights, interests and duties of employees or employers, he or she may report thereon to the Financial Services Commission within 10 days from such establishment or amendment of terms and conditions, etc. |
| (8) | Each retirement pension trustee shall make public the rate of returns on reserves, commissions, etc. at the end of each year, as prescribed by the Financial Services Commission. |
| Article 34 (Responsibilities of the Government) |
| (1) | The Government shall provide a support plan to promote retirement pension plans. |
| (2) | In order to ensure the sound settlement and development of retirement pension plans, the Government may take the following measures: <Amended on Apr. 13, 2021> |
| 1. | Joint research projects with labor-management organizations, and institutions or organizations related to retirement pension business, and administrative and financial support therefor; |
| 2. | Evaluation of retirement pension trustees related to the operation of retirement pension plans; |
| 3. | Training of specialized instructors and support with teaching materials for the sound and efficient operation of retirement pension plans; |
| 4. | Other matters prescribed by Presidential Decree to secure a stable life of employees in their old age. |
| (3) | The evaluation under paragraph (2) 2 shall be conducted with regard to the operational performance and management capability of a retirement pension trustee, the appropriateness of fees, etc., and other matters necessary for evaluation procedures, methods, etc. shall be prescribed by Presidential Decree. <Newly Inserted on Apr. 13, 2021> |
| (4) | The Government shall endeavor to prepare measures to protect employees' entitlement to benefits, such as tools to guarantee the payment of benefits under the retirement pension plans. <Amended on Apr. 13, 2021> |
| Article 35 (Supervision over Employers) |
| (1) | If any employer violates this Act, the rules for retirement pension, or the standard contract of SME retirement pension plan in relation to the establishment, operation, etc. of a retirement pension plan, the Minister of Employment and Labor may order such employer to correct the violation for a specified period. <Amended on Apr. 13, 2021> |
| (2) | If any employer fails to comply with a corrective order within the deadline under paragraph (1), the Minister of Employment and Labor may order suspension of the operation of the retirement pension plan. |
| Article 36 (Supervision over Retirement Pension Trustees) |
| (1) | If any retirement pension trustee commits a violation of this Act, the Minister of Employment and Labor may order such retirement pension trustee to correct the violation for a specified period. |
| (2) | If any retirement pension trustee fails to comply with an order for rectification under paragraph (1), the Minister of Employment and Labor may order services provided under this Act to be transferred to another retirement pension trustee. |
| (3) | In order to ensure the stable operation of retirement pension plans and protect employees' entitlement to receive benefits, the Financial Services Commission may supervise the services of retirement pension trustees prescribed by Presidential Decree and take any of the following measures if any retirement pension trustee violates Article 33: |
| 1. | Request for warning against the retirement pension trustee or the executive concerned, or warning or reprimanding the employee concerned, reduction of his or her wage, or suspension or removal from office; |
| 2. | Issuance of a corrective order regarding the violation concerned; |
| 3. | Recommendation of dismissal from office of the executive or suspension of performance of his or her duties; |
| 4. | Partial suspension of the business for a period of six months. |
| (4) | The Governor of the Financial Supervisory Service may investigate the status of the services, property, etc. of a retirement pension trustee, and issue an order to change or supplement the terms and conditions, etc. reported by a retirement pension trustee under Article 33 (7), if they are in contravention of this Act. |
| Article 37 (Request for Financial Transaction Information) |
| (1) | Notwithstanding Article 4 of the Act on Real Name Financial Transactions and Confidentiality and Article 33 of the Use and Protection of Credit Information Act, the Minister of Employment and Labor may, if necessary to supervise the operation of a retirement pension plan, including to ascertain whether an employer has the ability to pay benefits under Article 16, request a retirement pension trustee to provide each of the following information or data relating to the business for which a contract for asset management services and operational management services is concluded (hereinafter referred to as "financial transaction information"): |
| 1. | Current status of participants; |
| 2. | Current status of payment of benefits; |
| 3. | Current status of payment of contributions; |
| 4. | Information on the current status of the operation of reserves. |
| (2) | The requests for the financial transaction information to be made by the Minister of Employment under paragraph (1) shall be in the form of a document stating each of the following matters: |
| 1. | Transaction period requested; |
| 2. | Legal basis of the request; |
| 4. | Details of the financial transaction information requested. |
| (3) | The scope of the financial transaction information to be requested under paragraph (1) shall be reduced to the minimum necessary to supervise the soundness of the operation of a retirement pension plan. |
| (4) | Where a retirement pension trustee provides the Minister of Employment and Labor with financial transaction information under paragraph (2), such retirement pension trustee shall notify the employer or participants concerned of the major details of the financial transaction information provided, purpose of the use thereof, name of the persons who have received the information, and date when the information has been provided, etc. in writing within 10 days from the date when such financial transaction information has been provided. In such cases, Article 4-2 (4) of the Act on Real Name Financial Transactions and Confidentiality shall apply mutatis mutandis to the expenses incurred for such notification. |
| (5) | In requesting a retirement pension trustee to provide financial transaction information under paragraph (1), the Minister of Employment and Labor shall record such fact and keep such record for five years from the date the financial transaction information is requested. |
| (6) | No person who has received and learned financial transaction information under paragraph (1) shall furnish or disclose it to another person, or use it for any other purpose. |
CHAPTER VIII SUPPLEMENTARY PROVISIONS
| Article 38 (Measures to be Taken when Retirement Pension Plan is Abolished or Suspended) |
| (1) | In cases of abolition of a retirement pension plan or suspension of its operation, the retirement allowance system under Article 8 (1) shall be applied to the period after the abolition or during the period of the suspension. |
| (2) | If a retirement pension plan is abolished, the employer shall take measures prescribed by Presidential Decree as necessary to pay benefits from reserves, including payment of the contributions in arrears without delay. |
| (3) | If a retirement pension plan is suspended due to the grounds prescribed in Article 35 (2), etc., the employer and the retirement pension trustee shall continue to perform the basic duties prescribed by Presidential Decree, such as duties necessary for the operation of reserves. |
| (4) | Where the benefits are to be paid to each participant due to the abolition of a retirement pension plan, they shall be paid by the employer and the retirement pension trustee in the way of transfer to the account of the individual retirement pension plan designated by each participant: Provided, That Article 17 (5) shall apply mutatis mutandis where any participant fails to designate an account of an individual retirement pension plan. |
| (5) | If a participant is paid benefits under paragraph (4), he or she shall be deemed paid benefits by the interim settlement as prescribed in Article 8 (2). In such cases, calculation of the period subject to the interim settlement and other necessary matters shall be prescribed by Presidential Decree. |
| Article 39 (Business Cooperation) |
If the Minister of Employment and Labor deems it necessary to implement this Act, he or she may request related agencies, including the Financial Services Commission, to submit materials. In such cases, the agencies requested to submit materials shall not refuse this request unless they have any justifiable ground.
| Article 40 (Reporting and Investigation) |
| (1) | The Minister of Employment and Labor may ask employers and retirement pension trustees to report the implementation status, etc. of their retirement pension plans or to submit related documents or to require relevant persons to appear in person within the extent necessary to implement this Act. |
| (2) | If the Minister of Employment and Labor deems it necessary to implement this Act, he or she may authorize his or her officials to access a workplace implementing a retirement pension plan or a workplace of the relevant retirement pension trustee and ask questions to persons concerned, including the employer and the retirement pension trustee, or investigate documents, such as accounting books. |
| (3) | A public official who intends to have access to a workplace or a workplace of the relevant retirement pension trustee and ask a question of the person concerned or inspect books and other documents under paragraph (2) shall carry a certificate indicating his or her authority and produce it to the related persons. |
The Minister of Employment and Labor shall hold a hearing if he or she intends to revoke a registration under Article 27 (1) or issue an order for transfer under Article 36 (2).
| Article 42 (Entrustment and Delegation of Authority) |
| (1) | Part of the authority of the Minister of Employment and Labor under this Act may be entrusted to the Financial Services Commission, the Governor of the Financial Supervisory Service, or the COMWEL (limited to the duties of support, recovery, and collection of the amount to be recovered specified in Article 23-14, and the duties specified in the subparagraphs of Article 34 (2)), or may be delegated to the head of a regional employment and labor office, as prescribed by Presidential Decree. <Amended on Apr. 13, 2021> |
| (2) | The authority of the Financial Services Commission under this Act may partially be entrusted to the Governor of the Financial Supervisory Service, as prescribed by Presidential Decree. |
CHAPTER IX PENALTY PROVISIONS
| Article 43 (Penalty Provisions) |
Any person who violates Article 37 (6) shall be punished by imprisonment with labor for not more than five years or by a fine not exceeding 50 million won. <Amended on Apr. 13, 2021>
| Article 44 (Penalty Provisions) |
A person falling under any of the following subparagraphs shall be punished by imprisonment with labor for not more than three years or by a fine not exceeding 30 million won: Provided, That in cases falling under subparagraph 1 or 2, the person shall not be prosecuted against the expressed will of the victim: <Amended on Apr. 13, 2021>
| 1. | A person who fails to pay retirement allowances, in violation of Article 9 (1); |
| 2. | A person who fails to pay benefits, contributions, or interest for arrears at the time of the retirement of an employee, in violation of Article 17 (2) or (3), 20 (5), 23-7 (2), or 25 (3); |
| 3. | A retirement pension trustee who fails to take measures to protect participants, in violation of Article 27 (4); |
| 4. | A retirement pension trustee who violates Article 33 (3) or (4). |
| Article 45 (Penalty Provisions) |
A person falling under any of the following subparagraphs shall be punished by imprisonment with labor for not more than two years or by a fine not exceeding 20 million won: <Amended on Apr. 13, 2021>
| 1. | A person who makes a differentiation within the same business in establishing a retirement benefit scheme, in violation of Article 4 (2); |
| 2. | A person who provides solicitation services of retirement pension plans without filing a registration with the Minister of Employment and Labor, in violation of Article 31 (3); |
| 3. | A retirement pension trustee who entrusts solicitation services to a person who is not a solicitor for retirement pension plans, in violation of Article 31 (4); |
| 4. | An employer who violates the responsibilities prescribed in Article 32 (4) 1. |
| Article 46 (Penalty Provisions) |
A person falling under any of the following subparagraphs shall be punished by a fine not exceeding five million won: <Amended on Jun. 12, 2018; Apr. 13, 2021>
| 1. | A person who fails to obtain consent from the representatives of employees or each individual employee in violation of Article 4 (3) or (4) or 25 (1) or (2) 1; |
| 1-2. | A person who receives a subsidy by fraud or other improper means pursuant to Article 23-14 (3) 1; |
| 3. | An employer who fails to inform an employee that retirement benefits could be reduced or to take necessary measures to prevent the reduction of retirement benefits, in violation of Article 32 (5). |
| Article 47 (Joint Penalty Provisions) |
If a representative of a corporation, or an agent, employee or other servant of a corporation or individual commits an offense prescribed in Articles 44 through 46 with regard to the affairs of such corporation or individual, not only shall such offender be punished, but the corporation or individual shall also be punished by a fine prescribed in the relevant Article: Provided, That the same shall not apply where the corporation or individual has not been negligent in giving due attention and supervision relating to the relevant affairs to prevent such violation.
| Article 48 (Administrative Fines) |
| (1) | Any person falling under any of the following subparagraphs shall be subject to an administrative fine not exceeding 10 million won: <Amended on Apr. 13, 2021> |
| 1. | A retirement pension trustee who fails to ascertain whether the reserve is in excess of the minimum reserve and to notify the employer of the findings thereof, or who fails to notify the representatives of employees of the findings where the reserve falls short of the minimum reserve, in violation of Article 16 (2); |
| 2. | An employer who fails to resolve the shortage of the reserve pursuant to Article 16 (3); |
| 3. | An employer who fails to provide training at least once every year pursuant to Article 32 (2); |
| 4. | A retirement pension trustee who fails to provide training at least once every year pursuant to Article 33 (5). |
| (2) | A person falling under any of the following subparagraphs shall be punished by an administrative fine not exceeding five million won: <Amended on Apr. 13, 2021; Jan. 11, 2022> |
| 1. | An employer who fails to report the rules for defined benefit plan prescribed in Article 13 or the rules for defined contribution plan prescribed in Article 19; |
| 1-2. | An employer who fails to compose a reserve operation committee under Article 18-2 (1); |
| 1-3. | An employer who fails to prepare a reserve operational plan under Article 18-2 (2); |
| 1-4. | A retirement pension trustee who fails to comply with a request for submission of data under Article 29-2 (3); |
| 2. | An employer who violates the responsibilities prescribed in Article 32 (4) 2; |
| 3. | A retirement pension trustee who violates the responsibilities under Article 33 (2); |
| 4. | A retirement pension trustee who fails to submit details on the performance of retirement pension plans or who prepares and submits the performance details by fraud, in violation of Article 33 (6); |
| 5. | An employer who fails to comply with the corrective order under Article 35. |
| (3) | Administrative fines under paragraphs (1) and (2) shall be imposed and collected by the Minister of Employment and Labor, as prescribed by Presidential Decree. |
ADDENDA <Act No. 10967, Jul. 25, 2011>
Article 1 (Enforcement Date)
This Act shall enter into force one year after the date of its promulgation.
Article 2 (Period of Validity of Retirement Insurance, etc.)
| (1) | Where an employer purchases a retirement insurance policy or subscribes to a lump-sum retirement trust (hereinafter referred to as "retirement insurance policy, etc.") prescribed by Presidential Decree on or before December 1, 2005, on which date the Guarantee of Employees' Retirement Benefits Act (Act No. 7379) entered into force with its employees as the insured or beneficiaries, which ensures his/her employees receive lump-sum benefits or annuities, such employer shall be deemed to have established a retirement allowance system under Article 8 (1) of the Guarantee of Employees' Retirement Benefits Act (Act No. 7379): Provided, That the amount of lump-sum benefits paid under the retirement insurance policy, etc. shall not be less than the amount of retirement allowances prescribed in the same Article. |
| (2) | The retirement allowance system referred to in paragraph (1) shall be valid until December 31, 2010. |
Article 3 (Applicability concerning Requirements for Settling Retirement Allowance in Advance before Retirement)
The amended provisions of article 8 (2) shall apply where an employee requests his/her employer to settle his/her retirement allowance in advance before retirement on or after the date this Act enters into force.
Article 4 (Applicability concerning Methods of Paying Benefits)
The amended provisions of Articles 17 (4) and (5), 19 (2) (limited to the part where Article 17 (4) or (5) applies mutatis mutandis), and 38 (4) shall apply where a ground for paying benefits occurs on or after the date this Act enters into force. Article 5 (Applicability concerning Payment of Contributions under Defined Contribution Plans or Individual Retirement Pension Plans)
The part concerning interest for arrears in the amended provisions of Articles 20 (3) and (4), 25 (2) 4, and 25 (3) shall apply where interest for arrears is paid on or after the date this Act enters into force. Article 6 (Applicability concerning Establishment of Individual Retirement Pension Plans by Sole Proprietors, etc.)
Article 24 (2) 3 shall apply from the date on which five years lapse after the promulgation of this Act. Article 7 (Applicability concerning Revocation and Cancellation of Retirement Pension Trustees)
The amended provisions of Article 27 (2) and (3) shall apply where the registration of a retirement pension trustee is revoked or application for the cancellation of registration is filed on or after the date this Act enters into force. Article 8 (Special Cases concerning Time of Enforcement, Benefits, Contributions, etc. of Businesses Employing No More than Four Ordinary Employees)
| (1) | In cases of businesses employing no more than four ordinary employees, a retirement benefit scheme shall be deemed established on or after December 1, 2010, under the proviso to Article 1 of the Addenda to the Guarantee of Employees' Retirement Benefits Act (Act No. 7379). |
| (2) | Notwithstanding the amended provisions of Articles 8 (1), 15, 20 (1), and 25 (2) 2, the amount of retirement allowance, and the amount of benefits under a defined benefit plan, the amount of contributions under a defined contribution plan and an individual retirement pension plan prescribed in the amended provisions of Article 25 payable by an employer, which are applicable to a businesses employing no more than four ordinary employees shall be determined as follows: |
| 1. | The amount of retirement allowance, the amount of benefits under a defined benefit plan, the amount of contributions under a defined contribution plan and an individual retirement pension plan prescribed in the amended provisions of Article 25 payable by an employer, for the period from December 1, 2010, to December 31, 2012: 50/100 or more of the amount prescribed in the amended provisions of Articles 8 (1), 15, 20 (1) and 25 (2) 2; |
| 2. | The amount of retirement allowance, the amount of benefits under a defined benefit plan, the amount of contributions under a defined contribution plan and an individual retirement pension plan prescribed in the amended provisions of Article 25 payable by an employer, for the period after January 1: The amount prescribed in the amended provisions of Articles 8 (1), 15, 20 (1) and 25 (2) 2. |
| (3) | The parties to labor relationship shall not deteriorate existing working conditions for reasons of applying paragraph (1) or (2). |
Article 9 (Transitional Measures concerning Preferential Payment of Retirement Allowance)
| (1) | In cases of an employee who had retired before December 24, 1997, the retirement allowance for the period of continuous service on and after March 29, 1989, shall be the object of preferential payment, notwithstanding Article 12 (2). |
| (2) | In cases of an employee who had been employed before December 24, 1997, and retired on or after December 24, 1997, the amount obtained by adding the amount of retirement allowance for the period of continuous service from March 29, 1989, to December 23, 1997, and the amount of retirement allowance for the last three years of continuous service on and after December 24, 1997, shall be the object of preferential payment, notwithstanding Article 12 (2). |
| (3) | The amount of retirement allowance which becomes the object of preferential payment under paragraphs (1) and (2) shall be a prorated amount equal to the average wages earned for 30 days for each year of continuous service. |
| (4) | The amount of retirement allowance which becomes the object of preferential payment under paragraphs (1) and (2) shall not exceed the average amount of wages earned for 250 days. |
Article 10 (Transitional Measures concerning Retirement Allowance System)
The retirement allowance system established and the retirement allowance paid in advance under Article 34 (1) of the former Labor Standards Act as of December 1, 2005 on which date the Guarantee of Employees' Retirement Benefits Act (Act No. 7379) entered into force shall be deemed to have been established or paid in accordance with the Guarantee of Employees' Retirement Benefits Act (Act No. 7379). Article 11 (Transitional Measures concerning Individual Retirement Account)
The individual retirement accounts established under former Article 25 or 26 shall be deemed established under the amended provisions of Article 24 or 25. Article 12 Omitted.
Article 13 (Relationship with other Acts and Subordinate Statutes)
Where other Acts and subordinate statutes cite the former provisions of the Guarantee of Employees' Retirement Benefits as at the time this Act enters into force, it shall be deemed to have cited the relevant provisions of this Act in lieu of the former provisions, if provisions corresponding thereto in this Act exist.
ADDENDUM <Act No. 15664, Jun. 12, 2018>
This Act shall enter into force on July 1, 2018.
ADDENDUM <Act No. 17326, May 26, 2020>
This Act shall enter into force on the date of its promulgation. (Proviso Omitted.)
ADDENDUM <Act No. 18038, Apr. 13, 2021>
This Act shall enter into force one year after the date of its promulgation.
ADDENDA <Act No. 18752, Jan. 11, 2022>
Article 1 (Enforcement Date)
This Act shall enter into force six months after the date of its promulgation.
Article 2 (Transitional Measures concerning Modification of Rules for Defined Contribution Plan)
An employer who has established a defined contribution plan before this Act enters into force shall reflect the amended provisions of Article 19 (1) 4-2 in the rules for defined contribution plan within one year after this Act enters into force.