ACT ON THE GUARANTEE OF EMPLOYEES' RETIREMENT BENEFITS

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ACT ON THE GUARANTEE OF EMPLOYEES' RETIREMENT BENEFITS — 법갈피

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 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 21-2(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 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 23-14(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 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.

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 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>

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 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;

3. Purpose of use;

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.

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.

ACT ON THE GUARANTEE OF EMPLOYEES' RETIREMENT BENEFITS

Article 1(Purpose) #

Article 2(Definitions) #

Article 3(Scope of Application) #

Article 4(Establishment of Retirement Benefit Schemes) #

Article 5(Retirement Benefit Schemes of Newly Established Businesses) #

Article 6(Establishment of Two or More Retirement Pension Plans for Participants) #

Article 7(Protection of Entitlement to Benefits) #

Article 8(Establishment of Retirement Allowance Systems) #

Article 9(Payment of Retirement Allowances) #

Article 10(Extinctive Prescription of Retirement Allowances) #

Article 11(Treatment of Non-Establishment of Retirement Benefit Scheme) #

Article 12(Preferential Payment of Retirement Benefits) #

Article 13(Establishment of Defined Benefit Plans) #

Article 14(Contribution Period) #

Article 15(Amount of Benefits) #

Article 16(Securing of Ability to Pay Benefits) #

Article 17(Types of Benefits and Eligibility Requirements of Recipients) #

Article 18(Notification of Current Status of Operation) #

Article 18-2(Composition of Reserve Fund Operating Committee) #

Article 19(Establishment of Defined Contribution Plans) #

Article 20(Allocation and Payment of Contributions) #

Article 21(Methods of Operating Reserves and Supply of Information) #

Article 21-2(Establishment of Default Option Scheme) #

Article 21-3(Operation of Default Option Scheme) #

Article 21-4(Selection of Default Option Management Plan by Participants) #

Article 22(Early Withdrawal of Reserves) #

Article 23(Establishment of Defined Contribution Plan Participated by at Least Two Employers) #

Article 23-2(Operation of SME Retirement Pension Fund Plan) #

Article 23-3(Management and Operation of SME Retirement Pension Fund) #

Article 23-4(Utilization of Data) #

Article 23-5(Descriptions of Standard Contract of SME Retirement Pension Fund) #

Article 23-6(Establishment of SME Retirement Pension Fund Plan) #

Article 23-7(Level of Contribution and Payment of Contributions) #

Article 23-8(Establishment of Participant Contribution Account of SME Retirement Pension Fund Plan) #

Article 23-9(Contribution Period) #

Article 23-10(Provision of Information on Fund Operation) #

Article 23-11(Notification of Operational Status) #

Article 23-12(Types of Benefits and Eligibility Requirements of Recipients) #

Article 23-13(Early Withdrawal of Reserves) #

Article 23-14(Support by the State) #

Article 23-15(Responsibilities of COMWEL) #

Article 23-16(Guidance and Supervision) #

Article 24(Establishment and Operation of Individual Retirement Pension Plans) #

Article 25(Special Cases for Businesses Employing Less Than 10 Employees) #

Article 26(Registration of Retirement Pension Trustees) #

Article 27(Revocation of Registration of Retirement Pension Trustees and Transfer Orders) #

Article 28(Conclusion of Contract on Operational Management Services) #

Article 29(Conclusion of Contract on Asset Management Services) #

Article 29-2(Fees) #

Article 30(Provision of Operational Management Services) #

Article 31(Entrustment of Solicitation Services) #

Article 32(Responsibilities of Employers) #

Article 33(Responsibilities of Retirement Pension Trustees) #

Article 34(Responsibilities of the Government) #

Article 35(Supervision over Employers) #

Article 36(Supervision over Retirement Pension Trustees) #

Article 37(Request for Financial Transaction Information) #

Article 38(Measures to be Taken when Retirement Pension Plan is Abolished or Suspended) #

Article 39(Business Cooperation) #

Article 40(Reporting and Investigation) #

Article 41(Hearings) #

Article 42(Entrustment and Delegation of Authority) #

Article 43(Penalty Provisions) #

Article 44(Penalty Provisions) #

Article 45(Penalty Provisions) #

Article 46(Penalty Provisions) #

Article 47(Joint Penalty Provisions) #

Article 48(Administrative Fines) #