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ENFORCEMENT DECREE OF THE ACT ON THE GUARANTEE OF EMPLOYEES' RETIREMENT BENEFITS

Wholly Amended by Presidential Decree No. 23987, Jul. 24, 2012

Amended by Presidential Decree No. 25022, Dec. 24, 2013

Presidential Decree No. 25840, Dec. 9, 2014

Presidential Decree No. 26152, Mar. 23, 2015

Presidential Decree No. 26719, Dec. 15, 2015

Presidential Decree No. 27751, Dec. 30, 2016

Presidential Decree No. 27994, Apr. 18, 2017

Presidential Decree No. 28983, jun. 19, 2018

 Article 1 (Purpose)
The purpose of this Decree is to prescribe matters mandated by the Act on the Guarantee of Employees' Retirement Benefits and matters necessary for the enforcement thereof.
 Article 2 (Grounds, etc. for Providing Entitlement to Benefits under Retirement Pension Plans as Collateral)
(1) "Where the grounds and conditions prescribed by Presidential Decree, such as housing purchases, are fulfilled" in the former part of Article 7 (2) of the Act on the Guarantee of Employees' Retirement Benefits (hereinafter referred to as the "Act") means any of the following: <Amended by Presidential Decree No 26719, Dec. 15, 2015>
1. Where a pension holder who is a non-homeowner intends to purchase a house in his/her own name;
1-2. Where a pension holder who is a non-homeowner takes a responsibility for the tenancy deposit under Article 303 of the Civil Act or a security deposit under Article 3-2 of the Housing Lease Protection Act for residential purposes. In such cases, the number of such occurrences shall be limited to one time while the employee works in the same business or workplace (hereinafter referred to as "business");
2. Where a pension holder pays the medical care costs incurred for convalescence from illness or injury of a person falling under any of the following, which requires at least six months of convalescence:
(a) The pension holder himself/herself;
(b) The spouse of the pension holder;
(c) Family members dependent on the pension holder or on the spouse of the pension holder (referring to the dependent family members under Article 50 (1) 3 of the Income Tax Act; hereinafter the same shall apply);
3. Where a pension holder is declared bankrupt pursuant to the Debtor Rehabilitation and Bankruptcy Act within five years counted retroactively from the date of offering collateral;
4. Where a pension holder receives a decision to commence individual rehabilitation procedures pursuant to the Debtor Rehabilitation and Bankruptcy Act within five years counted retroactively from the date of offering collateral;
4-2. Where a pension holder pays the college tuitions, wedding expenses, or funeral expenses of any of the following persons:
(a) The pension holder himself/herself;
(b) The spouse of the pension holder;
(c) The family members dependent on the pension holder or the spouse of the pension holder;
5. Other cases falling under the grounds and requirements determined and publicly notified by the Minister of Employment and Labor, such as where damage is inflicted by a natural disaster, etc.
(2) "Extent prescribed by Presidential Decree" in the former part of Article 7 (2) of the Act means the following: <Amended by Presidential Decree No 26719, Dec. 15, 2015>
1. In cases under subparagraphs 1, 1-2, 2 through 4, and 4-2 of paragraph (1): 50/100 of each pension holder’s reserve;
2. In cases under paragraph (1) 5: The extent determined and publicly notified by the Minister of Employment and Labor in consideration of the severity of damage, etc. suffered by a pension holder from a natural disaster, etc.
 Article 3 (Grounds for Interim Settlement of Retirement Allowances)
(1) "Ground prescribed by Presidential Decree, such as housing purchases" in the former part of Article 8 (2) of the Act means any of the following: <Amended by Presidential Decree No 25022, Dec. 24, 2013; Presidential Decree No 26719, Dec. 15, 2015; Presidential Decree No. 28983, Jun. 19, 2018>
1. Where an employee who is a non-homeowner purchases a house in his/her own name;
2. Where an employee who is a non-homeowner pays a tenancy deposit under Article 303 of the Civil Act or a security deposit under Article 3-2 of the Housing Lease Protection Act for residential purposes. In such cases, the number of such occurrences shall be limited to one time while the employee works in the same business;
3. Where an employee pays the medical care costs incurred for convalescence from illness or injury of any of the following persons, which requires at least six months of convalescence:
(a) The employee himself/herself;
(b) The spouse of the employee;
(c) The family members dependent on the employee or on the spouse of the employee;
4. Where an employee is declared bankrupt pursuant to the Debtor Rehabilitation and Bankruptcy Act within five years counted retroactively from the date he/she applies for interim settlement of a retirement allowance;
5. Where an employee receives a decision to commence individual rehabilitation procedures pursuant to the Debtor Rehabilitation and Bankruptcy Act within five years counted retroactively from the date he/she applies for interim settlement of a retirement allowance;
6. Where an employer implements a system of reducing wages based on a particular age, length of consecutive service, or amount of wage through a collective agreement, employment rules, etc. on the condition of extending or guaranteeing the current full retirement age;
6-2. Where an employer has changed an employee’s contractual working hours by at least one hour a day or five hours a week under agreement with the employee, and the employee has agreed to continue to work for at least three months based on the changed contractual working hours;
6-3. Where an employee receives a reduced retirement allowance due to shortened working hours as the Labor Standards Act (No. 15513) enters into force;
7. Other cases falling under the grounds and requirements determined and publicly notified by the Minister of Employment and Labor, such as where damage is caused by a natural disaster, etc.
(2) Where an employer pays, in advance, retirement allowances after interim settlement due to the grounds under each subparagraph of paragraph (1), he/she shall keep relevant evidentiary documents until the fifth anniversary from the employee’s retirement.
 Article 4 (Matters to Be Stipulated in Defined Benefit Retirement Pension Rules)
(1) "Matters prescribed by Presidential Decree" in subparagraph 11 of Article 13 of the Act means the following:
1. Matters concerning the calculation and payment of contributions;
2. Matters concerning payment of fees for implementing operational management services under Article 28 of the Act (hereinafter referred to as "operational management services") and asset management services under Article 29 of the Act (hereinafter referred to as "asset management services");
3. Matters concerning the methods, procedures, etc. for training pension holders;
4. Matters concerning measures to handle affairs where contracts for the operational management services are concluded with multiple retirement pension trustees. In such cases, where a pension holder fails to designate an individual retirement pension plan account pursuant to Article 17 (5) of the Act, matters concerning designation of a retirement pension trustee to whom benefits are to be transferred shall be included therein.
(2) A retirement pension trustee who calculates contributions under paragraph (1) 1 shall consider the estimated amount of expenses required for future benefits, the estimated amount of operational revenues, etc. so that financial equilibrium is maintained on a long-term basis, and the detailed standards thereof shall be prescribed by Ordinance of the Ministry of Employment and Labor.
(3) An employer shall pay contributions regularly, at least once every year.
(4) The fees under paragraph (1) 2 shall be borne by the employer.
(5) Details concerning the methods, procedures, etc. for training pension holders under paragraph (1) 3 shall be prescribed by Ordinance of the Ministry of Employment and Labor.
(6) An employer who concludes a contract for operational management services with multiple retirement pension trustees shall select one of the retirement pension trustees as a representative retirement pension trustee (hereinafter referred to as "executive secretary") and require it to perform duties under each item of Article 22 (1) 3.
 Article 5 (Minimum Level of Reserves under Defined Benefit Retirement Pension Plans)
(1) "Rate prescribed by Presidential Decree" in the main sentence of Article 16 (1) of the Act means the ratio of reserve to the standard policy reserves under Article 16 (1) of the Act (hereinafter referred to as "standard policy reserve"), listed as follows:
1. Between July 26, 2012, and December 31, 2013: 60/100;
2. Between January 1, 2014, and December 31, 2015: 70/100;
3. Between January 1, 2016, and December 31, 2017: 80/100;
4. On or after January 1, 2018: At least 80/100 prescribed by Ordinance of the Ministry of Employment and Labor.
(2) "Rate prescribed by Presidential Decree" in the proviso of Article 16 (1) of the Act means the ratio of reserves to the standard policy reserve for the period of service provided to a business (hereinafter referred to as "period of past service") before the establishment of a retirement pension plan, if such period of past service is to be included in the period of contribution pursuant to Article 14 (2) of the Act, which is determined and publicly notified by the Minister of Employment and Labor according to the number of years of past service and the number of years that have passed since the contribution began.
 Article 6 (Notification of Results of Financial Review)
(1) Upon comparing the amount of reserves calculated pursuant to Article 16 (2) of the Act and the minimum reserves under Article 16 (1) of the Act (hereinafter referred to as “minimum reserves”), a retirement pension trustee shall notify an employer, in writing, of whether there is any shortfall in reserves, the current status of reserves and contributions paid, whether a financial stabilization plan has been formulated pursuant to Article 7 (2) 1, etc.: Provided, That where the amount of reserves is smaller than the minimum reserves and a trade union exists consisting of a majority of employees, the retirement pension trustee shall notify, in writing, the labor union thereof; where no labor union exists consisting of a majority of employees, he/she shall notify all employees thereof in writing, through an in-house bulletin board, or through an information and communications network.
(2) Forms necessary for the notification under paragraph (1) shall be determined and publicly announced by the Minister of Employment and Labor.
 Article 7 (Criteria for Judging Shortage in Reserves, and Measures for Resolution)
(1) "Level prescribed by Presidential Decree" in Article 16 (3) of the Act means 95/100 of the minimum reserves.
(2) Where the amount of reserves falls short of the level under paragraph (1), an employer shall resolve the shortfall through the following measures, pursuant to Article 16 (3) of the Act:
1. The employer shall prepare a concrete plan (hereinafter referred to as "financial stabilization plan") containing measures to raise funds for the deficiency, payment plans, etc., in order to equitably resolve the deficiency in the reserves within three years, and shall preserve such plan for three years;
2. Within 60 days from the date the employer is notified of the financial verification results pursuant to Article 6, he/she shall notify the labor union of the financial stabilization plan, if there is one joined by a majority of employees; or notify all employees and a retirement pension trustee of such plan, if there is no labor union joined by a majority of employees;
3. The employer shall faithfully implement the financial stabilization plan, such as paying contributions to make up for shortage in the reserves, etc.
 Article 8 (Grounds for Exceptions to Paying Full Amount of Benefits)
"Bankruptcy of a business or other cases prescribed by Presidential Decree" in the main sentence of Article 17 (2) of the Act means the following: <Amended by Presidential Decree No 26719, Dec. 15, 2015>
1. Where the business proprietor is declared bankrupt pursuant to the Debtor Rehabilitation and Bankruptcy Act;
2. Where the business proprietor receives a decision to commence individual rehabilitation procedures pursuant to the Debtor Rehabilitation and Bankruptcy Act;
3. Where the business proprietor falls under Article 5 (1) 2 or 3 of the Enforcement Decree of the Wage Claim Guarantee Act;
4. Where the ratio of reserve to the standard policy reserve is found to be below the rate under Article 5 (1) as a result of verification under Article 16 (2) of the Act. In such cases, even where the period of service provided to the relevant business before the establishment of a retirement pension plan is included in the period of contribution, the rate under Article 5 (1) shall be applicable;
5. Where the following values are not less than a ratio determined and publicly notified by the Minister of Employment and Labor;
Cumulative amount of retirement benefits paid to a pension holder in the relevant business since the commencement date of a business year
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Amount of reserves as of the commencement date of a business year + Total amount of contributions paid since the commencement date of a business year
6. Cases prescribed by Ordinance of the Ministry of Employment and Labor, in which other employees' entitlement to benefits is restricted if benefits are paid in full.
 Article 9 (Grounds for Exceptions to Transferring to Individual Retirement Pension Plans)
"Ground prescribed by Presidential Decree exists, such as where a pension holder receives such benefits after retiring at the age of 55 or older" in the proviso of Article 17 (4) of the Act means any of the following cases:
1. Where a pension holder receives benefits after retirement at the age of 55 or over;
2. Where a pension holder repays a loan, etc. secured against benefits pursuant to Article 7 (2) of the Act. In such cases, the amount not transferred to the account of individual retirement pension plan designated by the pension holder shall not exceed the amount of secured loan to be repaid;
3. Where the amount of retirement benefits does not exceed the amount determined by the Minister of Employment and Labor.
 Article 10 (Matters to Be Stipulated in Defined Contribution Retirement Pension Rules)
(1) "Matters prescribed by Presidential Decree" in Article 19 (1) 7 of the Act means the following:
1. Matters concerning payment of fees for performing operational management services and asset management services;
2. Matters concerning the methods, procedures, etc. for training pension holders.
(2) The fees under paragraph (1) 1 shall be borne by the employer: Provided, That the fees for additional contributions to be voluntarily borne by the pension holder pursuant to Article 20 (2) of the Act shall be borne by the pension holder.
(3) Details concerning the methods, procedures, etc. for training pension holders under paragraph (1) 2 shall be prescribed by Ordinance of the Ministry of Employment and Labor.
 Article 11 (Interest Rate for Unpaid Contributions)
"Interest rate prescribed by Presidential Decree" in the latter part of Article 20 (3) of the Act means the following:
1. The period counted from the day next to the date set to pay a contribution, to the 14th day (where payment date is extended by mutual agreement between parties, such extended date) from the date a ground to pay a benefit occurs, such as retirement, etc. of a pension holder: 10/100 a year;
2. The period from the day following the period under subparagraph 1, to the date a contribution is paid: 20/100 a year.
 Article 12 (Grounds for Exceptions to Applying Interest on Delayed Payment)
"Other cause prescribed by Presidential Decree" in Article 20 (4) of the Act means a case falling under any subparagraph of Article 18 of the Enforcement Decree of the Labor Standards Act.
 Article 13 (Grounds for Payment of Unpaid Contributions)
"Cause prescribed by Presidential Decree" in the main sentence of Article 20 (5) of the Act means a case where a pension holder retires from the relevant business.
 Article 14 (Grounds for Early Withdrawal from Defined Contribution Retirement Pension Plans)
"Ground prescribed by Presidential Decree, such as housing purchases, etc." in Article 22 of the Act means any of the following cases: <Amended by Presidential Decree No 26719, Dec. 15, 2015>
1. Where Article 2 (1) 1, 1-2, 2, or 5 is applicable;
2. Where a pension holder is declared bankrupt pursuant to the Debtor Rehabilitation and Bankruptcy Act within five years counted retroactively from the date he/she applies for early withdrawal;
3. Where a pension holder receives a decision to commence individual rehabilitation procedures pursuant to the Debtor Rehabilitation and Bankruptcy Act within five years counted retroactively from the date he/she applies for early withdrawal.
 Article 15 (Matters to Be Stipulated in Standard Rules)
"Matters prescribed by Presidential Decree" in subparagraph 1 (b) of Article 23 of the Act means the following:
1. Characteristics of the defined contribution retirement pension plan established under standard rules, and a name reflecting such matter;
2. The scope or characteristics of businesses eligible to join the defined contribution retirement pension plan;
3. Methods of operating reserves, and the criteria for selection thereof. In such cases, methods of operating reserves and the criteria for selection thereof where a pension holder does not give directions for operation shall be included therein;
4. Matters concerning grounds, procedures, etc. for withdrawal from the defined contribution retirement pension plan;
5. Matters concerning fees;
6. Other matters necessary for the reasonable operation of defined contribution retirement pension plans involving at least two employers, which are determined by the Minister of Employment and Labor.
 Article 16 (Matters to Be Stipulated in Standard Contracts)
"Matters prescribed by Presidential Decree" in subparagraph 2 of Article 23 of the Act means the following:
1. Matters concerning the implementation of standard rules under subparagraph 1 of Article 23 of the Act;
2. Matters concerning the calculation and payment of fees related to the operation of a defined contribution retirement pension plan involving at least two employers;
3. Matters concerning grounds and procedures for termination or alteration of a contract for operational management services and asset management services;
4. Other matters necessary for the guarantee of a pension holder’s entitlement to benefits, which are determined and publicly notified by the Minister of Employment and Labor.
 Article 16-2 (Eligibility for Individual Retirement Pension Plans)
“Person prescribed by Presidential Decree as requiring a stable source of old-age income, such as a sole proprietor” in Article 24 (2) 3 of the Act means any of the following persons:
1. A sole proprietor;
2. Any of the following employees for whom an individual retirement pension plan has not been set up according to the proviso of Article 4 (1) of the Act:
(a) An employee who has continuously worked for less than one year;
(b) An employee whose prescribed weekly working hours averaged over 4 weeks are less than 15 hours;
3. An employee who is under a retirement allowance system prescribed in Article 8 (1) of the Act;
4. A public official who is subject to the Public Officials Pension Act;
5. A soldier who is subject to the Military Pension Act;
6. A teacher or staff member who is subject to the Pension for Private School Teachers and Staff Act;
7. An employee of a special post office, who is subject to the Special Post Offices Act.
[This Article Newly Inserted by Presidential Decree No. 27994, Apr. 18, 2017]
 Article 17 (Limit on Contributions to Individual Retirement Pension Plans)
"Limit prescribed by Presidential Decree" in the proviso of Article 24 (3) of the Act means 18 million won a year, excluding the lump-sum benefits, etc. under a retirement benefit scheme (referring to the sum of contributions where the individual retirement pension plan has several accounts). <Amended by Presidential Decree No 26719, Dec. 15, 2015>
 Article 18 (Requirements for Entitlement to Each Type of Benefits under Individual Retirement Pension Plans, and Early Withdrawal)
(1) The requirements for entitlement to each type of benefits of individual retirement pension plans under Article 24 (5) of the Act shall be as follows:
1. Annuity: To be paid to pension holders aged 55 or older. In such cases, the payment period shall be at least five years;
2. Lump-sum benefit: To be paid to pension holders aged 55 or older who wish to be paid in a lump sum.
(2) Where a policy holder falls under any subparagraph of Article 14, he/she may early withdraw reserves against an individual retirement pension plan pursuant to Article 24 (5) of the Act. <Amended by Presidential Decree No 26719, Dec. 15, 2015>
 Article 19 (Special Cases on Business Employing Fewer than Ten Employees)
(1) The requirements for entitlement to each type of benefits of individual retirement pension plan under Article 25 of the Act shall be as listed in the subparagraphs of Article 17 (1) of the Act.
(2) Fees incurred due to contributions paid by an employer pursuant to Article 25 (2) 2 of the Act shall be borne by the employer; and fees for an additional contribution paid additionally by him/her pursuant to subparagraph 3 of the same paragraph shall be borne by him/her.
(3) "Cause prescribed by Presidential Decree" in the main sentence of Article 25 (3) of the Act means a case where a pension holder retires from the relevant business.
 Article 20 (Requirements, etc. for Registration for Retirement Pension Trustees)
(1) "Requirements prescribed by Presidential Decree, such as financial soundness, personnel and physical resource requirements" in the main sentence of Article 26 of the Act means the following:
1. The person shall meet the following requirements for financial soundness:
(a) A person who falls under subparagraph 1, 2, 3, or 7 of Article 26 of the Act: That his/her equity ratio under Article 10 (1) of the Act on the Structural Improvement of the Financial Industry (hereafter referred to as "equity ratio" in this Article) shall be the same as or higher than the level determined and publicly notified by the Financial Services Commission pursuant to paragraph (2) of the same Article;
(b) A person who falls under subparagraph 4 or 5 of Article 26 of the Act: That his/her equity ratio shall be above the level applicable to a person with the most similar duties, financial structure, etc. among persons falling under subparagraphs 1 through 3 and 7 of Article 26 of the Act;
(c) A person who falls under subparagraph 6 of Article 26 of the Act: That he/she shall have legal grounds to receive a contribution from a fund established under an Act;
2. The person shall employ necessary personnel, such as those with expertise in operational management services or asset management services, computer personnel required for the performance of duties, etc. as determined and publicly notified by the Financial Services Commission: Provided, That where part of operational management services is entrusted to another person pursuant to Article 28 (2) of the Act, personnel for such services shall be deemed employed;
3. The person shall be equipped with computer facilities and an office necessary for the performance of operational management services or asset management services determined and publicly notified by the Financial Services Commission. In such cases, the computer facilities shall have supplementary facilities so that continuity of services is ensured in case of an accident, such as blackout, fire, etc., and a computer system shall be constructed beforehand lest any damage should occur to pension holders due to changes, etc. in the details of the system.
(2) Notwithstanding the proviso of paragraph (1) 2, a retirement pension trustee who intends to perform the services under Article 28 (1) 2 of the Act shall employ a pension actuary meeting all of the following qualifications as determined and publicly notified by the Financial Services Commission:
1. That he/she shall be a certified insurance actuary registered pursuant to Article 182 (1) of the Insurance Business Act;
2. That he/she shall have an experience of service for at least one year in retirement pension, lump-sum retirement trust, or retirement insurance;
3. That he/she shall have completed a training program on the design of pension plans and pension actuarial sciences determined by the Financial Services Commission.
(3) The Financial Services Commission shall determine and publicly notify detailed standards concerning the requirements under paragraph (1) 2 and 3 and paragraph (2). In such cases, it shall first have consultation with the Minister of Employment and Labor.
(4) "Person prescribed by Presidential Decree" in subparagraph 7 of Article 26 of the Act means a person licensed to engage in trust business under the Financial Investment Services and Capital Markets Act.
(5) The Minister of Employment and Labor shall grant registration unless an application for registration under Article 26 of the Act falls under any of the following:
1. Where a person who applies for registration fails to fall under any subparagraph of Article 26 of the Act;
2. Where a person who applies for registration fails to meet the requirements under paragraphs (1) and (2).
 Article 21 (Protection Measures for Pension Holders Following Revocation of Registration, etc.)
"Measures prescribed by Presidential Decree to protect the pension holders” in Article 27 (4) of the Act means the following:
1. Notifying employers and pension holders of revocation or cancellation of registration and the details of measures to protect pension holders;
2. Indemnifying employers and pension holders against financial losses following termination or alteration of a contract for operational management services or asset management services;
3. Providing data, etc. necessary to transfer reserves to another retirement pension trustee and to continuously operate the relevant business and pension holders’ retirement pension plan pursuant to Article 27 (5) of the Act;
4. Other measures determined by the Minister of Employment and Labor as necessary to prevent unreasonable damage employers or pension holders may suffer.
 Article 22 (Scope of Operational Management Services)
(1) "Any other service prescribed by Presidential Decree" in Article 28 (1) 5 of the Act means the following:
1. Establishing and operating an individual retirement pension plan under Article 24 of the Act;
2. Providing training entrusted by an employer pursuant to Article 32 (2) of the Act;
3. The following services where a retirement pension trustee is an executive secretary:
(a) Verification of whether the trustee secures the ability to pay benefits under Article 16 of the Act, and notifying the results;
(b) Calculation of contributions under Article 4 (1) 1;
(c) Services of transmitting an employer's instructions regarding selection of a retirement pension trustee who pays benefits, to the retirement pension trustee, where grounds to pay benefits occur, such as retirement, etc.;
(d) Other matters necessary to stably and uniformly operate a plan such as registration of new pension holders, notification of current status of reserves, operations, etc., if a contract for the operational management services of a defined benefit retirement pension plan has been concluded with multiple retirement pension trustees.
(2) A retirement pension trustee who is not an executive secretary shall cooperate with an executive secretary in the provision of data necessary for performing the services under paragraph (1) 3.
 Article 23 (Partial Entrustment, etc. of Operational Management Services)
(1) "Some of the services prescribed by Presidential Decree" in Article 28 (2) of the Act means the services under Article 28 (1) 2 through 4 of the Act and the services under Article 22 (1) 2.
(2) "Requirements prescribed by Presidential Decree, such as personnel and physical resource requirements, etc." in Article 28 (2) of the Act means the requirements, the detailed standards of which are to be determined and publicly notified by the Financial Services Commission pursuant to Article 20 (3).
 Article 24 (Types of Contracts to Provide Asset Management Services)
"Insurance contract or trust contract prescribed by Presidential Decree" in Article 29 (2) of the Act means an insurance contract operated as a special account under Article 108 of the Insurance Business Act or a specified money trust contract under subparagraph 1 of Article 103 of the Enforcement Decree of the Financial Investment Services and Capital Markets Act, meeting all of the following:
1. That, pursuant to Article 16 (4) of the Act, the amount of reserves shall exceed 150/100 of the standard policy reserve, and the retirement pension trustee shall return the difference to the employer if the employer requests such;
2. That benefits shall be paid to pension holders upon their retirement;
3. That a pension holder shall be allowed to directly claim the benefits to a retirement pension trustee: Provided, That no pension holder whose period of continuous service is less than one year shall be allowed to request the payment of benefits, and the reserves shall be vested in the employer;
4. That the reserves shall be paid to pension holders where a contract is terminated: Provided, That the reserves for a pension holder whose period of continuous service is less than one year shall belong to the employer.
 Article 25 (Management Methods Guaranteeing Principal of and Interest on Reserves against Defined Contribution Retirement Pension Plans and Individual Retirement Pension Plans)
(1) "Management method guaranteeing the payment of principal and interest as prescribed by Presidential Decree" in Article 30 (2) 4 of the Act means the following:
1. The following management methods provided by a financial institution with a credit rating grade the same as or above that determined and publicly notified by the Financial Services Commission:
(a) Deposits and installment savings handled by a bank under Article 2 (1) 2 of the Banking Act;
(b) Insurance contracts handled by an insurance company under subparagraph 6 of Article 2 of the Insurance Business Act, which guarantee the payment of principal and interest in the form of guaranteeing the minimum interest rate on reserves, etc.;
(c) Contracts for which the payment of principal and interest is guaranteed by a financial investment business entity under Article 8 of the Financial Investment Services and Capital Markets Act, which are purchase and resale agreements under subparagraph 3 (b) of Article 85 of the Enforcement Decree of the same Act;
2. Deposits handled by a postal agency pursuant to the Postal Savings and Insurance Act;
3. Bank of Korea currency stabilization securities and national bonds under Article 69 (1) of the Bank of Korea Act; national bonds; and bonds for which payment of principal and interest is guaranteed by the government;
4. Other management methods by which payment of principal and interest is guaranteed, which are determined and publicly notified by the Financial Services Commission.
(2) Where the Financial Services Commission intends to determine or alter the credit rating grade under paragraph (1) 1 and the management methods under subparagraph 4 of the same paragraph, it shall have consultation with the Minister of Employment and Labor.
 Article 26 (Management Methods and Standards for Stable Operation of Reserves)
(1) "Management methods and standards prescribed by Presidential Decree" in Article 30 (2) 5 of the Act means the following: <Amended by Presidential Decree No 26152, Mar. 23, 2015>
1. Management methods: Any of the following management methods:
(a) Deposits and installment savings handled by banks under Article 2 (1) 2 of the Banking Act;
(b) Insurance contracts that allow a return of reserves and are publicly notified by the Financial Services Commission, among those handled by an insurance company under subparagraph 6 of Article 2 of the Insurance Business Act;
(c) Securities under Article 4 of the Financial Investment Services and Capital Markets Act, which are publicly notified by the Financial Services Commission. In such cases, the securities (excluding the collective investment securities under the Financial Investment Services and Capital Markets Act) shall not be those issued by employers or interested parties determined and publicly notified by the Financial Services Commission;
(d) Deposits handled by a postal agency under the Postal Savings and Insurance Act;
(e) Other management methods necessary for a stable mid- to long-term operation of reserves, which are determined and publicly notified by the Financial Services Commission;
2. Standards: The following standards shall be followed:
(a) Except for the management method guaranteeing payment of principal and interest under each subparagraph of Article 25 (1) and the management method whose investment risk is lowered by diversified investment in securities, etc., which are publicly notified by the Financial Services Commission, among the management methods under the items of subparagraph 1, operation shall be implemented within the total investment limits prescribed by Ordinance of the Ministry of Employment and Labor. In such cases, the Financial Services Commission may determine and publicly notify different detailed investment limits for each retirement pension plan within the total investment limits prescribed by Ordinance of the Ministry of Employment and Labor;
(b) As for the asset in a defined contribution retirement pension plan and individual retirement pension plan, investment in any high-risk asset prescribed by Ordinance of the Ministry of Employment and Labor shall be made only by the method of collective investment under Article 6 (5) of the Financial Investment Services and Capital Markets Act.
(2) Where the Financial Services Commission publicly notifies the matters under paragraph (1) 1 (b), (c), and (e) and subparagraph 2 (a) of the same paragraph, it shall first have consultation with the Minister of Employment and Labor. <Amended by Presidential Decree No 26152, Mar. 23, 2015>
 Article 27 (Scope of Entrustment of Solicitation Services)
"Services prescribed by Presidential Decree" in Article 31 (1) of the Act means the following: <Amended by Presidential Decree No 26719, Dec. 15, 2015>
1. Explaining a retirement pension plan and operation thereof to persons who have established or joined a retirement pension plan (including persons who intend to establish or join a retirement pension plan);
2. Introducing or connecting an employer or prospective pension holder to a retirement pension trustee;
3. Explaining the methods of operating reserves and providing information thereon;
4. Transmitting inquiries made by employers or pension holders (including prospective pension holders) and answers given by retirement pension trustees, etc.;
5. Other matters necessary for establishing retirement pension plans and soliciting persons to join a retirement pension plan, which are determined by the Minister of Employment and Labor.
 Article 28 (Requirements for Retirement Pension Plan Solicitors)
(1) "Requirements prescribed by Presidential Decree" in Article 31 (1) 2 of the Act means the following:
1. That he/she shall not be an executive officer or employee of a retirement pension trustee, and shall be entrusted with solicitation services by a retirement pension trustee under a written contract with the retirement pension trustee;
2. That he/she shall be any of the following persons and shall complete a training program determined by the Minister of Employment and Labor: In such cases, the details of the training program and completion thereof shall be as listed in attached Table 1:
(a) An insurance solicitor, or an insurance agent who is an individual, registered with the Financial Services Commission pursuant to Article 84 or 87 of the Insurance Business Act, with experience in the relevant field for at least one year;
(b) An investment solicitor registered with the Korea Financial Investment Association pursuant to Article 51 of the Financial Investment Services and Capital Markets Act, with experience in the relevant field for at least one year;
(c) Other persons deemed by the Minister of Employment and Labor to have expertise in the retirement pension plan.
(2) The training under paragraph (1) 2 shall be entrusted to an institution having personnel, facilities, and equipment prescribed by Ordinance of the Ministry of Employment and Labor, and matters necessary to complete the training program, etc. shall be determined by the Minister of Employment and Labor.
(3) A retirement pension trustee shall require a retirement pension plan solicitor registered pursuant to Article 31 (2) of the Act (hereinafter referred to as "retirement pension plan solicitor") to take refresher training under attached Table 2 within six months from each second anniversary counting from the date such solicitor is registered.
 Article 29 (Entrustment of Registration of Solicitors)
(1) Pursuant to the latter part of Article 31 (2) of the Act, the Minister of Employment and Labor may designate an agency from among the agencies designated by the Financial Services Commission according to the procedures determined by the Minister of Employment and Labor, with the personnel, facilities, and equipment determined by the Minister of Employment and Labor, and may entrust the agency with the registration of retirement pension plan solicitors.
(2) The Minister of Employment and Labor may determine the period of entrusting the registration of solicitors under paragraph (1) within the range not to exceed three years.
 Article 30 (Matters to Be Observed by Retirement Pension Plan Solicitors)
(1) Pursuant to Article 31 (7) 2 of the Act, no retirement pension plan solicitor shall perform any of the following:
1. Implementing solicitation using a name other than retirement pension plan solicitor or another retirement pension plan solicitor's name;
2. Implementing solicitation based on falsehood, by telling false information or by not notifying interested parties of material facts;
3. Implementing solicitation beyond the scope of entrusted solicitation services under Article 27;
4. Concluding solicitation entrustment contracts with two or more retirement pension trustees;
5. Using the information, etc. that he/she has learned in the course of solicitation services for his/her or a third party's interest;
6. Concluding a contract as an agent of a retirement pension trustee who entrusted him/her with solicitation services or of an employer who plans to join a retirement pension plan, etc.;
7. Receiving money, securities, or other articles with property value from an employer who has established or intends to establish a retirement pension plan, or from a pension holder;
8. Providing or promising to provide extraordinary benefit under Article 33 (4) 2 of the Act to an employer who has established or intends to establish a retirement pension plan, a pension holder, or a person who is their interested party;
9. Transmitting instructions on the management methods of reserves from employers or pension holders, or giving operational instructions on behalf of them;
10. Other matters determined and publicly notified by the Minister of Employment and Labor to protect employers and pension holders and to maintain sound and orderly trade practices.
(2) Where a retirement pension plan solicitor implements solicitation pursuant to Article 31 (7) 2 of the Act, he/she shall post a sign or certificate in his/her office indicating that he/she is entrusted with solicitation or present such sign or certificate to the other party; and shall first notify employers, etc. of the matters necessary to protect employers and pension holders and to maintain sound and orderly trade practices, such as the name of retirement pension trustee who entrusted him/her with solicitation, etc., which are determined and publicly notified by the Minister of Employment and Labor.
(3) The Financial Services Commission shall determine detailed standards for the provisions prescribed in each subparagraph of paragraph (1) and in paragraph (2) after consultation with the Minister of Employment and Labor, and publicly notify them.
 Article 31 (Duties of Employers for Stable Operation of Retirement Benefit Schemes)
"Matters prescribed by Presidential Decree" in Article 32 (1) of the Act means the following: <Amended by Presidential Decree No 26719, Dec. 15, 2015; Presidential Decree No. 28983, Jun. 19, 2018>
1. Where the implementation of a peak wage system, a reduction in wages, a decrease in contractual working hours, or the shortening of working hours (limited to working hours shortened as the Labor Standards Act (No.15513) enters into force), etc. are likely to affect the employees' amount of benefits, an employer who establishes or operates a retirement allowance system or a defined benefit retirement pension plan shall notify pension holders of the fact that the amount of retirement benefits to receive will decrease; and shall have consultation with the representative of employees under Article 4 (3) of the Act (hereinafter referred to as "representative of employees") on necessary measures, such as the introduction of defined contribution retirement pension plan, preparation of separate standards for the calculation of benefits;
2. An employer shall select a retirement pension trustee in comprehensive consideration of the capability and expertise in the overall aspects of a retirement pension plan, such as performing operational management services and asset management services, providing related services, etc. In such cases, where an employer of a business employing at least 300 persons at all times reports retirement pension rules under Articles 13 and 19 of the Act, or selects or changes a retirement pension trustee, he/she shall submit a written statement of grounds for the selection or change of the retirement pension trustee to the Minister of Employment and Labor;
3. An employer shall provide a retirement pension trustee with data necessary to calculate contributions, such as collective agreement, employment rules, labor contracts, and payroll records and to verify the ability to pay benefits under Article 16 of the Act;
4. An employer shall cooperate with a retirement pension trustee in implementing group training where he/she has entrusted a retirement pension trustee therewith pursuant to the latter part of Article 32 (2) of the Act.
 Article 32 (Content of Education for Retirement Pension Holders)
(1) "Matters prescribed by Presidential Decree, such as the operating status of the retirement pension plan of the business concerned" in the former part of Article 32 (2) of the Act means the following:
1. Each of the following matters regarding the plan in general:
(a) Characteristics and differences of each plan, such as matters regarding types of benefits, eligibility requirements, amount of benefits, etc.;
(b) Matters concerning the operation of a retirement pension plan of the relevant business, such as secured loan, early withdrawal, interest on delayed payment, etc.;
(c) Matters concerning wages, etc. being the criteria for the calculation of benefits or contributions;
(d) Matters concerning procedures for paying benefits and transfer of reserves to an individual retirement pension plan at the time of retirement;
(e) Matters concerning taxation system, such as pension income tax, retirement income tax, etc.;
(f) Where the retirement pension plan of the relevant business is suspended or abolished, methods of handling such situation;
(g) Matters concerning the general principle of managing asset and liabilities in consideration of income, asset, liabilities, age, number of years of consecutive service, etc. of pension holders, and the importance of planning for old age;
2. The following matters where a defined benefit retirement pension plan is established:
(a) Current status of contributions paid over the recent three years;
(b) Standard amount of benefits by type of benefits;
(c) Current status of reserves compared with minimum reserves as at the end of the immediately preceding business year;
(d) Where a financial stabilization plan is prepared, the plan and the progress of implementation;
(e) Matters concerning the current status of operation, operational object, etc. of reserves;
3. The following matters where a defined contribution retirement pension plan is established:
(a) Amount of an employer's contributions, timing of payment, and current status of payment;
(b) In the case of a defined contribution retirement pension plan involving at least two pension holders pursuant to Article 23 of the Act, matters concerning standard rules and standard agreements;
(c) Matters concerning investment principles conducted for the stable operation of reserves, such as diversified investment, etc.;
(d) Matters concerning revenue structure by operational type of reserves, such as collective investment securities, etc.; base selling price; investment risks; fees, etc., presented by a retirement pension trustee.
(2) Where an employer provides training about the matters under paragraph (1) 3 (c) and (d), he/she shall cooperate with a retirement pension trustee in providing such training.
 Article 33 (Prohibited Conducts for Employers)
"Any other act prescribed by Presidential Decree" in Article 32 (3) 2 of the Act means the following:
1. Deliberately omitting or falsifying the materials necessary to perform operational management services or asset management services and providing them to a retirement pension trustee;
2. Requesting a retirement pension trustee to provide services with economic value in addition to the supplementary services specified in the terms and conditions, etc., or receiving such services from such trustee;
3. Requesting a retirement pension trustee to purchase goods, etc., or selling him/her goods, etc. on the ground for having concluded a contract;
4. Requesting a retirement pension trustee to present a definite amount of returns on a management method that does not present fixed returns, or receiving such proceeds from such trustee;
5. Failing to prepare or notify a financial stabilization plan.
 Article 34 (Prohibited Acts for Retirement Pension Trustees)
(1) "Any other act prescribed by Presidential Decree" in Article 33 (3) 4 of the Act means the following:
1. Using the information he/she acquired in the course of performing duties, such as operational instructions, etc. given by employers or pension holders, for his/her or a third party's interest;
2. Requesting employers, pension holders, or persons interested therewith to conclude a retirement pension agreement on the condition of giving financial advantage to them, such as extending existing loans, granting new loans, etc.;
3. Compelling employers or pension holders to adopt a certain management method;
4. Providing employers or pension holders with a definite judgment or judgement without reasonable grounds, with regard to a rise or fall in the value of a particular management method;
5. Suggesting a remarkably favorable condition deviating from the ordinary conditions in the methods of managing reserves, etc.;
6. Applying to each employer or pension holder, a different interest rate, etc. on management methods, for which the retirement pension trustee guarantees the payment of principal and interest, without any reasonable grounds;
7. Presenting to employers or pension holders a definite amount of returns on a management method that does not present fixed returns.
(2) Detailed standards for each subparagraph of paragraph (1) shall be determined and publicly notified by the Financial Services Commission after consultation with the Minister of Employment and Labor.
 Article 35 (Concrete Meaning of Extraordinary Benefits)
(1) "Any extraordinary benefit prescribed by Presidential Decree" in Article 33 (4) 2 of the Act means the following:
1. Offering money or valuables to induce a contract or to maintain a contract;
2. Discounting fees not based on terms and conditions;
3. Paying all or some of the expenses to be borne by an employer or pension holder;
4. Paying interest on loans a pension holder or employer obtained from a relevant retirement pension trustee, on behalf of such pension holder or employer;
5. Providing supplementary services with economic value not based on terms and conditions;
6. Other economic benefit corresponding to those under subparagraphs 1 through 5, which is determined and publicly notified by the Financial Services Commission.
(2) The concrete standards for the benefit under each subparagraph of paragraph (1) shall be determined and publicly notified by the Financial Services Commission after consultation with the Minister of Employment and Labor.
 Article 36 (Content of Education for Individual Retirement Pension Holders)
(1) "Matters prescribed by Presidential Decree, such as the operating status of the retirement pension plan of the business concerned" in Article 33 (5) of the Act means the following:
1. In the case of an individual retirement pension plan under Article 24 (2) of the Act: Matters under Articles 17, 18, 32 (1) 1 (e) and (g), and subparagraph 3 (c) and (d) of the same paragraph of this Decree;
2. In the case of an individual retirement pension plan under Article 25 of the Act: Matters concerning Article 32 (1) 1 and 3 of this Decree.
(2) The training methods under paragraph (1) shall be prescribed by Ordinance of the Ministry of Employment and Labor.
 Article 37 (Supervision of Retirement Pension Trustees by Financial Services Commission)
(1) "Services prescribed by Presidential Decree" in Article 36 (3) of the Act means operational management services and asset management services.
(2) The Financial Services Commission may determine and publicly notify detailed standards necessary to conduct supervision of the duties under paragraph (1). In such cases, it shall first have consultation with the Minister of Employment and Labor.
 Article 38 (Measures to Be Taken by Employers Following Abolition of Plans)
"Measures prescribed by Presidential Decree" in Article 38 (2) of the Act means the following:
1. Employers shall submit a report of abolition containing the following to the Minister of Employment and Labor within one month from the date a retirement pension plan is abolished:
(a) Consent of the employees' representative to the abolition of the retirement pension plan;
(b) Grounds for abolition of the retirement pension plan and date of abolition;
(c) Reserves and unpaid contributions of the relevant business calculated on the basis of the date the retirement pension plan is abolished (referring to the shortage in reserves based on the amount under Article 16 (1) 2 of the Act, in the case of a defined benefit retirement pension plan; and referring to the amount including delayed interest following delay in payment of contributions, in the case of a defined contribution retirement pension plan);
(d) Measures to settle unpaid contributions such as scheduled date for payment of unpaid contributions (limited to a defined contribution plan);
2. Employers shall notify pension holders of the following:
(a) Matters under subparagraph 1 (c);
(b) Benefit statements and payment procedures;
(c) Period subject to interim settlement under Article 40;
(d) Measures to settle unpaid contributions such as scheduled date for payment of unpaid contributions (limited to a defined contribution plan);
3. Employers shall pay unpaid contributions within 14 days from the date a retirement pension plan is abolished and shall require a retirement pension trustee to pay benefits.
 Article 39 (Basic Duties to Be Maintained when Retirement Pension Plan Is Suspended)
"Basic duties prescribed by Presidential Decree" in Article 38 (3) of the Act means the following:
1. The following duties in the case of an employer:
(a) Announcing public notice to employees about the measures to handle the suspension period of a retirement pension plan, such as grounds for suspension of the retirement pension plan, date of suspension, schedule for resumption, plan to pay, if any, unpaid contributions, etc.;
(b) Providing training to pension holders under the former part of Article 32 (2) of the Act;
(c) Measures necessary to perform the services prescribed by Acts and subordinate statutes, etc. with regard to claims for payment of benefits, management of reserves, etc. while a retirement pension plan is suspended;
(d) Other duties determined by the Minister of Employment and Labor for maintaining the continuity of retirement pension plans and for protecting pension holders;
2. The following duties in the case of a retirement pension trustee:
(a) Paying benefits following retirement, etc. of pension holders;
(b) Providing training of pension holders entrusted pursuant to the latter part of Article 32 (2) of the Act;
(c) Duties specified by Acts and subordinate statutes and a contract for operational management services and asset management services with regard to the payment of benefits, management of reserves, notification of current status of management, etc.;
(d) Other duties determined by the Minister of Employment and Labor for maintaining the continuity of retirement pension plans and for protecting pension holders.
 Article 40 (Period, etc. Subject to Interim Settlement Following Abolition of Retirement Pension Plans)
The amount of interim settlement (applicable only to a defined benefit retirement pension plan) where benefits are deemed paid by interim settlement pursuant to Article 38 (4) and (5) of the Act, and the period subject to interim settlement shall be as follows:
1. In cases of a defined benefit retirement pension plan: The amount of interim settlement shall be calculated by dividing proportionally the amount of reserves accumulated for each business in consideration of the period of consecutive service and average wage of each pension holder, and the amount of benefit under subparagraph 4 of Article 13 of the Act of each pension holder; and the period subject to interim settlement shall be counted on the basis of the amount of interim settlement;
2. In cases of a defined contribution retirement pension plan and an individual retirement pension plan under Article 25 (1) of the Act: The period subject to interim settlement shall be counted starting from the date each pension holder joins a retirement pension plan to the last day of the period corresponding to the contributions paid by an employer.
 Article 41 (Entrustment and Delegation of Authorities)
(1) The Minister of Employment and Labor shall entrust the following authorities to the Financial Services Commission pursuant to Article 42 (1) of the Act:
1. Registering retirement pension trustees pursuant to Article 26 of the Act;
2. Revoking the registration of retirement pension trustees or issuing orders to transfer services pursuant to Article 27 of the Act;
3. Revoking the registration of retirement pension plan solicitors or suspending their services pursuant to Article 31 (6) of the Act;
4. Issuing corrective orders or orders to transfer services pursuant to Article 36 (1) and (2) of the Act (including requests to make a report or to submit documents pursuant to Article 40 of the Act, to the extent necessary to exercise the relevant authorities);
5. Holding hearings under Article 41 of the Act;
6. Imposing and collecting administrative fines under Article 48 of the Act (limited to imposing and collecting administrative fines on retirement pension trustees).
(2) The Financial Services Commission may determine and publicly notify detailed standards necessary to perform the duties under paragraph (1) 1 through 4. In such cases, it shall first have consultation with the Minister of Employment and Labor.
(3) Where the Financial Services Commission revokes the registration of a retirement pension plan solicitor or suspends his/her services pursuant to paragraph (1) 3, it shall notify the Minister of Employment and Labor of the content thereof and the grounds therefor.
(4) The Minister of Employment and Labor shall entrust the following authorities to the Governor of the Financial Supervisory Service pursuant to Article 42 (1) of the Act:
1. Approval for the standard contract under subparagraph 2 of Article 23 of the Act;
2. Verification of any violation of matters to be observed by retirement pension plan solicitors pursuant to Article 31 (7) of the Act.
(5) Where a retirement pension plan solicitor is found to have violated any matters to be observed, as a result of verification under paragraph (4) 2, the Governor of the Financial Supervisory Service shall notify the Financial Services Commission of such finding.
(6) Where deemed necessary to protect employers and pension holders and to maintain sound trading practices, the Minister of Employment and Labor may request the Governor of the Financial Supervisory Service to verify the matters under paragraph (4) 2, and the Governor of the Financial Supervisory Service shall conduct verification as requested and submit a written result of verification to the Minister of Employment and Labor.
(7) The Minister of Employment and Labor shall delegate the following authorities to the heads of local employment and labor offices pursuant to Article 42 (1) of the Act:
1. Receiving rules for retirement pension plan reported pursuant to Article 13 or 19 of the Act;
2. Issuing corrective orders or orders to suspend the operation of retirement pension plans under Article 35 of the Act;
3. Requesting reporting, submission of documents, or appearance pursuant to Article 40 (1) of the Act; making inquiries or inspections pursuant to paragraph (2) of the same Article;
4. Imposing and collecting administrative fines pursuant to Article 48 of the Act (limited to imposing and collecting administrative fines on employers);
5. Receiving a written statement of grounds for selecting or altering a retirement pension trustee pursuant to the latter part of subparagraph 2 of Article 31;
6. Receiving a report on the abolition of a retirement pension plan pursuant to subparagraph 1 of Article 38.
(8) Pursuant to Article 42 (2) of the Act, the Financial Services Commission shall entrust authorities regarding the measures under Article 36 (3) 1 of the Act (excluding a request to dismiss employees) to the Governor of the Financial Supervisory Service.
 Article 42 (Criteria for Imposition of Administrative Fines)
The criteria for imposition of administrative fines under Article 48 (1) and (2) of the Act shall be as listed in attached Table 3.
 Article 43 (Management of Personally Identifiable Information)
If inevitable to conduct following duties, the Minister of Employment and Labor (including persons entrusted or delegated with the authorities of the Minister of Employment and Labor pursuant to Article 41), employers, retirement pension trustees, persons entrusted with operational management services pursuant to Article 28 (2) of the Act by a retirement pension trustee, and agencies entrusted with the duties of registering retirement pension solicitors pursuant to the latter part of Article 31 (2) of the Act, may manage data including resident registration numbers under subparagraph 1 of Article 19 of the Enforcement Decree of the Personal Information Protection Act or foreigner registration numbers under subparagraph 4 of the same Article:
1. Duties concerning registering retirement pension trustees pursuant to Article 26 of the Act;
2. Duties concerning revoking registration of retirement pension trustees and issuing orders to retirement pension trustees to transfer services pursuant to Article 27 of the Act;
3. Duties concerning concluding an operational management services contract pursuant to Article 28 of the Act;
4. Duties concerning concluding an asset management services contract pursuant to Article 29 of the Act;
5. Duties concerning performing operational management services pursuant to Article 30 of the Act;
6. Duties concerning entrusting solicitation services, registering retirement pension plan solicitors, revoking registration, and suspending solicitation services pursuant to Article 31 of the Act;
7. Duties necessary for the training entrusted by employers pursuant to Article 32 (2) of the Act;
8. Duties concerning submitting details on the performance of retirement pension plans pursuant to Article 33 (6) of the Act;
9. Duties concerning supervising employers under Article 35 of the Act;
10. Duties concerning supervising retirement pension trustees under Article 36 of the Act;
11. Duties concerning requesting a retirement pension trustee to provide financial transaction information under Article 37 of the Act;
12. Duties concerning cooperating in business with related agencies pursuant to Article 39 of the Act;
13. Duties concerning making a report and inspection pursuant to Article 40 of the Act.
 Article 44 (Re-Examination of Regulation)
The Minister of Employment and Labor shall examine the appropriateness of the following matters every three years, counting from each base date specified in the following (referring to the period that ends on the day before the base date of every third year) and shall take measures, such as making improvements: <Amended by Presidential Decree No. 27751, Dec. 30, 2016>
1. The minimum levels of reserves against defined benefit retirement pension plans under Article 5: January 1, 2017;
2. Deleted; <by Presidential Decree No. 27751, Dec. 30, 2016>
3. Criteria for deciding the shortage of reserves and solutions therefor under Article 7: January 1, 2017;
4. Requirements for retirement pension plan solicitors under Article 28: January 1, 2017;
5. Matters to be observed by retirement pension plan solicitors under Article 30: January 1, 2017.
[This Article Newly Inserted by Presidential Decree No. 25840, Dec. 9, 2014]
ADDENDA
Article 1 (Enforcement Date)
This Decree shall enter into force on July 26, 2012.
Article 2 (Applicability concerning Assumption of Responsibility for Fees)
The amended provisions of Articles 4 (4), 10 (2), and 19 (2) shall begin to apply to the fees occurring on or after July 26, 2013, with regard to the businesses that have established a retirement pension plan as at the time this Decree enters into force.
Article 3 (Transitional Measures concerning Insurance Actuaries)
A person who has registered as a retirement pension trustee pursuant to the previous provisions as at the time this Decree enters into force shall employ a pension actuary under Article 20 (2) not later than July 25, 2013.
Article 4 (Purchase of Retirement Insurance, etc. by which Retirement Allowance System Is Deemed Established)
(1) "Retirement insurance policy or a lump-sum retirement trust prescribed by Presidential Decree" in the main sentence of Article 2 (1) of Addenda of the Act on the Guarantee of Employees' Retirement Benefits as wholly amended by Act No. 10967 means an insurance policy or a trust (hereinafter referred to as "retirement insurance policy, etc.") meeting all of the following:
1. That a retiring employee shall be allowed to directly request a financial institution engaged in the business of retirement insurance, etc. (hereinafter referred to as "insurer, etc.") for payment after selecting either a lump sum or annuity payment (excluding cases where he/she has subscribed to a retirement lump-sum trust; hereinafter the same shall apply): Provided, That where the period of continuous service of the employee is less than one year, he/she shall not request a lump-sum or annuity payment and the lump-sum or annuity payment shall belong to the employer;
2. That a refund in case a retirement insurance contract, etc. are terminated (hereinafter referred to as "termination refund") shall be paid to an employee who is the insured or a beneficiary (hereinafter referred to as "insured, etc."): Provided, That where the period of continuous service of the employee, who is the insured, etc. is less than one year, the refund shall belong to the employer;
3. That entitlement of an employee, who is the insured, etc. to a lump-sum or annuity payment, or to a termination refund shall not be transferred or used as collateral;
4. That, before concluding a retirement contract, etc., an insurer, etc. shall remind the insured et al. of the contents of the retirement contract, etc. and notify them of conclusion after concluding the retirement contract, etc.;
5. That an insurer, etc. shall, each year, inform the insured, etc. of the state of insurance premiums and trust premiums that have been paid, or the estimated amount of lump-sum or annuity payments.
(2) Where an employee, who is the insured, etc. receives a termination refund pursuant to the main sentence of paragraph (1) 2, he/she shall be deemed to have beforehand received such amount from among the retirement allowance that he/she is entitled to pursuant to Article 8 (2) of the Act.
(3) Where the amount of lump-sum from retirement insurance, etc. is less than the amount of retirement allowance under Article 8 (1) of the Act, an employer shall pay the difference to a retiring employee.
(4) Notwithstanding paragraph (1) 2, where an employer and an employee terminates a retirement insurance contract, etc. and intends to implement a defined benefit plan or a defined contribution plan, one may choose not to pay a termination refund.
Article 5 Omitted.
Article 6 (Relationship with Other Acts and Subordinate Statutes)
Where a provision of the previous Enforcement Decree of the Act on the Guarantee of Employees' Retirement Benefits is cited by other Acts or subordinate statutes as at the time this Decree enters into force, relevant provision of this Decree shall be deemed cited in place of the previous provision if a provision corresponding thereto is included in this Decree.
ADDENDA <Presidential Decree No. 25022, Dec. 24, 2013>
Article 1 (Enforcement Date)
This Decree shall enter into force on January 1, 2014.
Articles 2 through 20 Omitted.
ADDENDA <Presidential Decree No. 25840, Dec. 9, 2014>
Article 1 (Enforcement Date)
This Decree shall enter into force on January 1, 2015.
Articles 2 through 16 Omitted.
ADDENDUM <Presidential Decree No. 26152, Mar. 23, 2015>
This Decree shall enter into force on May 1, 2015.
ADDENDA <Presidential Decree No. 26719, Dec. 15, 2015>
Article 1 (Enforcement Date)
This Decree shall enter into force on the date of its promulgation.
Article 2 (Transitional Measures concerning Limit of Contributions to Individual Retirement Pension Plans)
Notwithstanding the amended provisions of Article 17, previous provisions shall apply to the limit of contributions for the year 2015 that a person who establishes an individual retirement pension plan before this Decree enters into force pays.
ADDENDA <Presidential Decree No. 27751, Dec. 30, 2016>
Article 1 (Enforcement Date)
This Decree shall enter into force on January 1, 2017. (Proviso Omitted.)
Articles 2 through 12 Omitted.
ADDENDUM <Presidential Decree No. 27994, Apr. 18, 2017>
This Decree shall enter into force on July 26, 2017.
ADDENDUM <Presidential Decree No. 28983, Jun. 19, 2018>
This Decree shall enter into force on the date of its promulgation.