ENFORCEMENT DECREE OF THE ACT ON AGGREGATION OF NATIONAL PENSION AND OCCUPATIONAL PENSIONS
Presidential Decree No. 21642, Jul. 27, 2009
Amended by Presidential Decree No. 22075, Mar. 15, 2010
Presidential Decree No. 22493, Nov. 15, 2010
Presidential Decree No. 23488, Jan. 6, 2012
Presidential Decree No. 23736, Apr. 18, 2012
Presidential Decree No. 24454, Mar. 23, 2013
Presidential Decree No. 25751, Nov. 19, 2014
Presidential Decree No. 26330, jun. 22, 2015
Presidential Decree No. 28211, Jul. 26, 2017
| Article 2 (Notifying Results of Application for Aggregation) |
| Article 3 (Methods of Making Refunds, etc. and Procedures therefor) |
| (1) | An aggregation applicant may repay the amount to be refunded pursuant to Article 8 (2) of the Act (hereinafter referred to as "refund") and interest when making a refund under Article 4 in lump sum or in monthly installments. <Amended by Presidential Decree No. 26330, Jun. 22, 2015> |
| (2) | An aggregation applicant shall pay an amount of refund and interest when making the refund under Article 4 (hereinafter referred to as "refund, etc.") to a pension management agency that has paid him/her retirement benefits, etc. under the laws on occupational pensions, by the following deadlines: |
| 1. | Where the refund, etc. is to be made in lump sum: By the end of the month immediately following the month in which the date results of an application for aggregation under Article 2 are notified (based on the date notification is received from the pension management agency that has paid him/her retirement benefits, etc. under the laws on occupational pensions; hereafter the same shall apply in this paragraph); |
| 2. | Where the refund, etc. is to be made in installments: By the end of each month from the month immediately following the month in which the date results of an application for aggregation under Article 2 are notified. |
| (3) | Where an aggregation applicant makes a refund, etc. in installments, the number of times the refund, etc. is to be made shall be set at the request of the aggregation applicant; however, the number shall be set so that the aggregation applicant may pay the refund, etc. in full before he/she reaches the age of eligibility for aggregate benefits, which falls within the following scope: |
| 1. | Where the period of occupational employment is less than five years: 24 times; |
| 2. | Where the period of occupational employment is between five and ten years: 48 times; |
| 3. | Where the period of occupational employment is at least ten years: 60 times. |
| (4) | Where an aggregation applicant pays a refund, etc. in installments pursuant to paragraph (1), the installment amount to be paid shall be calculated by equally dividing the refund, etc. by the number of times the refund is made under paragraph (3). |
| Article 4 (Interest when Making Refunds) |
| (1) | Where an aggregation applicant makes a refund pursuant to Article 3, the period for which interest on the refund is calculated shall be listed as follows: |
| 1. | Where the refund, etc. is to be made in lump sum: The number of months from the month immediately following the month in which the date the decision is made to pay retirement benefits, etc. pursuant to the laws on occupational pensions falls, to the month in which the date (hereinafter referred to as "date of receipt") an application for aggregation under Article 8 (1) of the Act is received by a pension management agency falls; |
| 2. | Where the refund, etc. is to be made in installments: A period calculated by aggregating the following periods: |
| (a) | A period prescribed in subparagraph 1; |
| (b) | The number of months from the month immediately following the month in which the date of receipt falls, to the month in which the installment is finished pursuant to Article 3 (2) 2. |
| (2) | The interest rate applicable to the refund under paragraph (1) shall be listed as follows: <Amended by Presidential Decree No. 22493, Nov.15, 2010> |
| 1. | Where the refund, etc. is to be made in installments: The highest interest rate from among the interest rates on time deposits applied by banks operating nationwide (hereinafter referred to as "national bank") among the banks established pursuant to the Banking Act as at January 1 of each year during the period under paragraph (1) 1; |
| 2. | Where the refund, etc. is to be made in installments: The following interest rates: |
| (a) | Period prescribed in paragraph (1) 2 (a): Interest rate prescribed in subparagraph 1; |
| (b) | Period prescribed in paragraph (1) 2 (b): Highest interest rate among interest rates on time deposits applied by national banks as at January 1 of the year it is received. |
| (3) | Notwithstanding paragraph (2) 2 (b), where the difference between the interest rate under the same item and the interest rate while the refund, etc. is made in installments is at least 2/100, the amount of the refund, etc. shall be recalculated by applying the increased or decreased interest rate. The same shall apply where increase or decrease is at least 2/100 compared with changed interest rate while the refund, etc. is made in installments. |
| Article 5 (Interest Rate when Repayment of Refunds, etc. Is Delayed) |
| (1) | Where an aggregation applicant fails to make a refund, etc. by the deadline under Article 3 (2), overdue interest shall be calculated for the default period (to be calculated monthly). |
| (2) | The interest rate applicable to the overdue interest under paragraph (1) shall be equivalent to two times the highest interest rate among the interest rates on one-year time deposits applied by national banks as at January 1 of a relevant year in which the repayment of the refund, etc. is delayed. |
| Article 6 (Interest when Repaying Refunds, etc.) |
| (1) | Where a pension management agency repays a refund, etc. to an aggregation applicant as his/her application for aggregation is dismissed pursuant to Article 8 (5) of the Act, interest thereon shall be calculated for the period from the month immediately following the month in which he/she makes the last installment of refund, etc. pursuant to Article 3 (2) 2, to the month in which the date he/she repays the refund, etc. to the pension management agency falls. |
| (2) | The interest rate applicable to the refund, etc. under paragraph (1) shall be the average of interest rates on one-year time deposits applied by national banks as at January 1 of a relevant year during the period under paragraph (1). |
| Article 7 (Interest when Lump-sum Refunds Are Paid) |
| 2. | Interest for the period after the month immediately following the month he/she reaches the age of eligibility for an aggregate old-age pension shall be calculated as follows: |
| (a) | Interest on a lump-sum refund under Article 4 (2) of the Act: To calculate the interest by applying the average of interest rates on one-year time deposits applied by national banks as at January 1 of a relevant year during the following period to the number of months from the month immediately following the month he/she reaches the age of eligibility for an aggregate old-age pension, to the month in which the date a ground for paying him/her an aggregate old-age pension arises falls; |
| (b) | Interest on a the lump-sum refund under Article 19 of the Act: To calculate the interest by applying the average of interest rates on one-year time deposits applied by national banks as at January 1 of a relevant year during the following period to the number of months from the month immediately following the month he/she reaches the age of eligibility for an aggregate old-age pension, to the month in which the date a ground for which aggregate benefits become unavailable to him/her arises falls. |
| Article 8 (Interest when Lump-sum Retirement Benefits Are Paid) |
| (1) | Where, pursuant to Articles 5 (2) and 19 of the Act, an aggregation applicant is paid lump-sum retirement benefits under the laws on occupational pensions, interest thereon shall be calculated as follows: |
| 1. | Where, pursuant to Article 8 (1) 2 of the Act, he/she is not paid retirement benefits, etc. under the laws on occupational pensions, the interest shall be calculated as follows: |
| (a) | Interest on the lump-sum retirement benefits under Article 5 (2) of the Act: To calculate the interest by applying the average of interest rates on one-year time deposits applied by national banks as at January 1 of a relevant year during the following period to the number of months from the month immediately following the month in which the day before retirement falls, to the month in which the day a ground for paying him/her aggregate benefits arises falls; |
| (b) | Interest on the lump-sum retirement benefits under Article 19 of the Act: To calculate the interest by applying the average of interest rates on one-year time deposits applied by national banks as at January 1 of a relevant year during the following period to the number of months from the month immediately following the month in which the day before retirement falls, to the month in which the day a ground for which aggregate benefits become unavailable to him/her arises falls; |
| 2. | Where, pursuant to Article 8 (2) of the Act, he/she is paid retirement benefits, etc. under the laws on occupational pensions, interest thereon shall be calculated as follows: |
| (a) | Interest on the lump-sum retirement benefits under Article 5 (2) of the Act: To calculate the interest by applying the average of interest rates on one-year time deposits applied by national banks as at January 1 of a relevant year during the following period to the number of months from the month immediately following the month in which the date he/she makes a refund, etc. (in the case of returning the refund, etc. in installments, the day the last installment is returned) falls, to the month in which the day a ground for which aggregate benefits become unavailable to him/her arises falls; |
| (b) | Interest on the lump-sum retirement benefits under Article 19 of the Act: To calculate the interest by applying the average of interest rates on one-year time deposits applied by national banks as at January 1 of a relevant year during the following period to the number of months from the month immediately following the month in which the date he/she makes a refund, etc. (in the case of returning the refund, etc. in installment, the date the last installment is returned) falls, to the month in which the date a ground for which aggregate benefits become unavailable to him/her arises falls. |
| (2) | Where a pension management agency is paid interest on a refund pursuant to Article 4 when, pursuant to Article 8 (2) of the Act, an aggregation applicant has been paid retirement benefits, etc. under the laws on occupational pensions, such interest and interest calculated as follows shall be paid to the aggregation applicant in addition to the interest calculated according to paragraph (1) 2: |
| 1. | Where lump-sum retirement benefits are to be paid to him/her pursuant to Article 5 (2) of the Act: Interest calculated by applying the interest rate under the same item, to the interest received by the pension management agency pursuant to Article 4 over the period prescribed in paragraph (1) 2 (a); |
| 2. | Where lump-sum retirement benefits are to be paid to him/her pursuant to Article 19 of the Act: Interest calculated by applying the interest rate under the same item, to the interest received by the pension management agency pursuant to Article 4 over the period prescribed in paragraph (1) 2 (b). |
| Article 9 (Application of Compound Interest) |
The interest under Articles 4, 6 and 8 shall be calculated using compound interest for each fiscal year.
| Article 9-2 (Conversion of Amount of Average Monthly Standard Income into Current Value for Calculation of Aggregate Retirement Pension) |
[This Article Newly Inserted by Presidential Decree No. 26330, Jun. 22, 2015]
| Article 10 (Establishing Committee for Deliberating on Aggregate Benefits) |
The committee for deliberating on aggregate benefits under Article 22 (7) of the Act (hereinafter referred to as "Deliberative Committee") shall consist of the following members: <Amended by Presidential Decree No. 22075, Mar. 15, 2010; Presidential Decree No. 24454, Mar. 23, 2013; Presidential Decree No. 25751, Nov. 19, 2014; Presidential Decree No. 28211, Jul. 26, 2017> | 1. | One person each recommended by the head of respective central administrative agency, from among members in general service of the Senior Executive Service or members in extraordinary civil service thereof in the Ministry of Strategy and Finance, the Ministry of Education, the Ministry of Science and ICT, the Ministry of National Defense, and the Ministry of Personnel Management; |
| 2. | One person each in general service of the Senior Executive Service and in extraordinary civil service thereof in the Ministry of Health and Welfare; |
| 3. | Two specialists with abundant experience and knowledge in the national pension and occupational pensions. |
| Article 11 (Meetings of Deliberative Committee) |
| (1) | The chairperson of the Deliberative Committee (hereinafter referred to as "chairperson") shall convene and preside over meetings of the Deliberative Committee. |
| (2) | A majority of the members of the Deliberative Committee shall constitute a quorum; and any decision thereof shall require the concurring votes of a majority of those present. |
| (3) | The Deliberative Committee shall convene meetings in any of the following cases: |
| 1. | Where at least one-third of the members of the Committee request; |
| 2. | Where deemed necessary by the chairperson. |
| Article 12 (Preparation, etc. of Meeting Minutes) |
| (1) | The chairperson shall prepare and keep minutes of the meetings of the Deliberative Committee. |
| (2) | The date, place and subject matters of meetings shall be recorded in the minutes; and the chairperson and the members present shall sign or name and seal said minutes. |
| (3) | Any current or former pension holder, a beneficiary of aggregate benefits and other persons having interest in aggregate benefits may, at any time, request to inspect the minutes under paragraph (1). |
| Article 13 (Executive Secretary) |
| (1) | The Deliberative Committee shall have one executive secretary to perform the affairs of the Deliberative Committee. |
| (2) | The executive secretary shall be appointed by the Minister of Health and Welfare from among the public officials in the Ministry of Health and Welfare. <Amended by Presidential Decree No. 22075, Mar. 15, 2010> |
| Article 14 (Allowances, etc.) |
The members, etc. of the Deliberative Committee may be paid allowances and travelling expenses, within budgetary limits: Provided, That where members who are public officials attend a meeting of the Deliberative Committee directly in relation to his/her duties, this shall not apply.
| Article 15 (Detailed Operational Rules) |
Matters necessary for operating the Deliberative Committee in addition to those prescribed by this Decree shall be determined by the chairperson after a resolution by the Deliberative Committee.
| Article 16 (Establishment, etc. of Department in Exclusive Charge of Aggregate Benefits) |
In order to efficiently perform duties relating to aggregation and the payment of aggregate benefits, each pension management agency shall establish a department exclusively in charge of such duties; or shall designate a department to take charge of such duties.
| Article 17 (Establishment, etc. of Joint Information System for Aggregate Benefits) |
| (1) | In order to provide an information system interface for aggregate benefits established and operated by each pension management agency pursuant to Article 27 of the Act, the Minister of Health and Welfare may establish and operate a joint information system for aggregate benefits handling the following duties: <Amended by Presidential Decree No. 22075, Mar. 15, 2010; Presidential Decree No. 23736, Apr. 18, 2012> |
| 2. | Providing data on each pension management agency under Article 26 (1) of the Act, and collecting, managing and processing data necessary therefor; |
| 3. | Establishing a computer network necessary for performing duties under subparagraphs 1 and 2; |
| 4. | Producing, analyzing and providing various statistics on aggregate benefits. |
| (2) | The expenses necessary for establishing and operating a joint information system for aggregate benefits under paragraph (1) shall be borne by pension management agencies. In such case, pension management agencies shall consult to determine the ratio for apportioning expenses. <Newly Inserted by Presidential Decree No. 23736, Apr. 18, 2012> |
[Title Amended by Presidential Decree No. 23736, Apr. 18, 2012]
| Article 18 (Handling Sensitive Information and Personally Identifiable Information) |
[This Article Newly Inserted by Presidential Decree No. 23488, Jan. 16, 2012]
ADDENDA
Article 1 (Enforcement Date)
This Decree shall enter into force on August 7, 2009.
Article 2 Omitted.
ADDENDA <Presidential Decree No. 22075, Mar. 15, 2010>
Article 1 (Enforcement Date)
This Decree shall enter into force on March 19, 2010. (Proviso Omitted)
Article 2 Omitted.
ADDENDA <Presidential Decree No. 22493, Nov. 15, 2010>
Article 1 (Enforcement Date)
This Decree shall enter into force on November 18, 2010.
Articles 2 through 5 Omitted.
ADDENDA <Presidential Decree No. 23488, Jan. 6, 2012>
Article 1 (Enforcement Date)
This Decree shall enter into force on the date of its promulgation. (Proviso Omitted)
Article 2 Omitted.
ADDENDUM <Presidential Decree No. 23736, Apr. 18, 2012>
This Decree shall enter into force on the date of its promulgation.
ADDENDA <Presidential Decree No. 24454, Mar. 23, 2013>
Article 1 (Enforcement Date)
This Decree shall enter into force on the date of its promulgation. (Proviso Omitted)
Articles 2 through 4 Omitted.
ADDENDA <Presidential Decree No. 25751, Nov. 19, 2014>
Article 1 (Enforcement Date)
This Decree shall enter into force on the date of its promulgation: Provided, That, among the Presidential Decrees amended in accordance with Article 5 of these Addenda, amendments to Presidential Decrees, which were promulgated before this Decree enters into force, but the dates on which they are to enter into force have yet to arrive, shall enter into force on the dates the respective Presidential Decrees enter into force.
Articles 2 through 5 Omitted.
ADDENDA <Presidential Decree No. 26330, Jun. 22, 2015>
Article 1 (Enforcement Date)
This Decree shall enter into force on the date of its promulgation: Provided, That the amended provisions of Article 9-2 shall enter into force on July 29, 2015.
Article 2 (Interest when Repaying Excessive Refunds, etc. to Persons whose Benefits Are Restricted Pursuant to Laws on Occupational Pensions)
| (1) | Where a pension management agency repays a refund, etc. that has been excessively received from a person whose benefits are restricted pursuant to Article 2 of Addenda of the Act on Aggregation of National Pension and Occupational Pensions as partially amended by Act No. 13099, the period for which interest is calculated shall be from the month immediately following the month the refund, etc. has been received in lump sum; or the last installment has been received pursuant to Article 3 (2), to the month in which the date excessively received refund, etc. are to be repaid falls. |
| (2) | The interest rate applicable to the excessive refund, etc. under paragraph (1), shall be the average of interest rates on one-year time deposits applied by national banks as at January 1 of a relevant year during the period under paragraph (1). In such case, the interest shall be compound interest calculated on an annual fiscal year basis. |
ADDENDA <Presidential Decree No. 28211, Jul. 26, 2017>
Article 1 (Enforcement Date)
This Decree shall enter into force on the date of its promulgation: Provided, That, among the Presidential Decrees amended in accordance with Article 8 of these Addenda, amendments to Presidential Decrees, which were promulgated before this Decree enters into force, but the dates on which they are to enter into force have yet to arrive, shall enter into force on the dates the respective Presidential Decrees enter into force.
Articles 2 through 8 Omitted.