Article 16(Recovery of benefits) #
(1) "Interest and recovery expenses prescribed by Presidential Decree" in the main clause, with the exception of the subparagraphs, of Article 15 (1) of the Act means the interest and recovery expenses as described below: <Amended on Oct. 4, 2022>
1. Interest: Interests shall accrue from the date immediately following the date the recipient receives the benefits to the date the Minister of National Defense determines and notifies the amounts of benefits to be recovered and interest thereon by applying the highest interest rate among the interest rates on time deposits applied by banks with operations across the country (hereinafter referred to as "bank with nationwide branches") as of January 1 of the pertinent year from among the banks established under the Banking Act, and the interest shall be added to the benefits on an annual basis so that the amount of interest can be thereafter calculated based on such added amount; provided, where a person liable to pay an amount subject to recovery under Article 15 (2) of the Act fails to pay it by the payment deadline, the overdue interest shall accrue from the day immediately following the payment deadline to the date of payment, by applying the interest that is twice the highest interest rate among the interest rates on time deposits applied by banks with nationwide branches as of January 1 of each pertinent year.
2. Recovery expenses: Travel expenses incurred in investigating the recovery of benefits and other expenses incurred in recovery, which are calculated by the Minister of National Defense.
(2) Where a person who has received benefits or the head of an agency entrusted with the payment of benefits pursuant to Article 61 (5) becomes aware of a fact falling under any subparagraph of Article 15 (1) of the Act, he or she shall report or notify the Minister of National Defense of such fact without delay.
(3) When the Minister of National Defense becomes aware of any ground for the recovery of benefits via the report or notice provided under paragraph (2) or by other means, he or she shall conduct an investigation without delay and send a written notice requesting return of the amount subject to recovery to the person who has received benefits (hereinafter referred to as "written notice requesting return").
(4) A person who has received a written notice requesting return pursuant to paragraph (3) shall, within 30 days from the date of receiving the notice, pay the amount subject to recovery to an institution designated by the Minister of National Defense to receive national funds ; and the institution designated to receive national funds shall, upon receipt of such funds, send a notice confirming receipt to the Minister of National Defense without delay; provided, where a person who has received a written notice requesting return falls under Article 15 (1) 3 or 4 of the Act, he or she may, by the payment deadline, submit to the Minister of National Defense an application to pay the amount subject to recovery in installments and, upon receiving approval therefor, pay it in monthly installments from the month following the month in which approval is granted, with the number of installments being determined as described below:
1. Where the amount to be returned is less than 10 million won: 20 installments;
2. Where the amount to be returned is at least 10 million won but less than 20 million won: 40 installments;
3. Where the amount to be returned is at least 20 million won: 60 installments.
(5) In cases of the payment in installments provided in the proviso, with the exception of the subparagraphs, of paragraph (4), the interest shall be calculated by applying the interest rate under paragraph (1) 1 to the amount subject to recovery to be paid during the period of installment payment, and in such cases, the amount to be paid in installments shall be calculated by equally dividing the principal and interest by the number of installments; provided, in cases falling under Article 15 (1) 4 of the Act, where benefits have been erroneously paid in the first place due to an error or omission by the Minister of National Defense, no interest shall accrue thereon.
(6) Where a person who is approved for installment payments of an amount subject to recovery based on the proviso, with the exception of the subparagraphs, of paragraph (4) fails to make installment payments for at least three months, the Minister of National Defense may revoke approval for payment in installments and may recover the amount subject to recovery and interest for arrears in a lump sum.
(7) In any of the following cases, the Pension Service Agency may collect such amount in the same manner as delinquent national taxes under Article 15 (3) of the Act:
1. Where an amount that shall be returned by the payment deadline (referring to the deadline for the final installment payment where installment payments have been approved as prescribed in the main clause, with the exception of the subparagraphs, of that paragraph) is not fully paid;
2. Where an amount subject to recovery and overdue interest are to be recovered in a lump sum under paragraph (6).