Basic Old-Age Pension Act


Published: 2011-07-14

Subscribe to a Global-Regulation Premium Membership Today!

Key Benefits:

Subscribe Now for only USD$40 per month, or Get a Day Pass for only USD$9.99.
law view
 Article 1 (Purpose)   print
The purpose of this Act is to support the stabilization of the livelihood of low-income senior citizens and promote their welfare by providing them with basic senior pensions in consideration of the senior citizens' contribution to bringing up their descendants and advancing the country and society.
law view
 Article 2 (Definitions)   print
The definitions of terms used in this Act shall be as follows: <Amended by Act No. 8852, Feb, 29, 2008; Act No. 9932, Jan. 18, 2010>
1. The term "right to receive a senior pension" means the entitlement to receive a basic senior pension under this Act (hereinafter referred to as "pension");
2. The term "qualified recipient" means a person who owns the right to receive a senior pension;
3. The term "pensioner" means a person who is paid a pension under this Act;
4. The term "evaluated amount of income" means the amount of income recognized under subparagraph 8 of Article 2 of the National Basic Living Security Act (limited to the evaluated amount of income of the principal and his/her spouse): Provided, That the scope of income and property that form the basis for calculation thereof, the method of calculation of the evaluated amount of income under subparagraph 9 of Article 2 of the same Act, and the method of calculation of property converted to income under subparagraph 10 of Article 2 of the same Act, may vary as prescribed by Ordinance of the Ministry of Health and Welfare.
law view
 Article 3 (Objects of Pension Payments)   print
Pensions shall be paid to persons 65 years of age or older and whose evaluated amount of income is less than the amount prescribed by Presidential Decree.
law view
 Article 4 (Basic Policy for Pension Payments)   print
(1) The State and local governments shall strive to ensure, to the maximum extent possible, that the amount of pensions payable will reach the level required to support the stabilization of the livelihood of senior citizens and promote their welfare in accordance with the purpose under Article 1.
(2) The State and local governments shall secure financial resources to bear the necessary expenses under paragraph (1).
(3) The State and local governments shall strive to ensure, to the maximum extent possible, that payment of pensions will not entail any income reversal between social classes, nor lower work motivation and saving incentives. <Newly Inserted by Act No. 8557, Jul.27, 2007>
law view
 Article 5 (Pension Benefits)   print
(1) The pension benefits shall be an amount equivalent to 5/100 of the amount under Article 51 (1) 1 of the National Pension Act: where the sum total of the evaluated amount of income and the pension benefits is more than the amount prescribed by Presidential Decree under Article 3, part of the benefits payable may be reduced, as prescribed by Presidential Decree. <Amended by Act No. 8557, July 27, 2007>
(2) Notwithstanding paragraph (1), where both the principal and his/her spouse are paid pensions, 20/100 of the respective pension benefits shall be reduced. <Amended by Act No. 8557, July 27, 2007>
law view
 Article 6 (Application for Pension)   print
(1) A person who desires to receive a pension (hereinafter referred to as "pension applicant") or his/her relatives and other related persons may apply for the pension benefits to the Minister of Health and Welfare or the head of a local government. In such cases, the Minister of Health and Welfare or the head of a local government shall determine whether to pay the pension benefits in accordance with the result of the investigation under Article 7 without delay. <Amended by Act No.8557, Jul. 27, 2007; Act No. 8852, Feb. 29, 2008; Act No. 9932, Jan. 18, 2010>
(2) In filing an application under paragraph (1), a pension applicant and his/her spouse shall submit a written consent to provide the following materials or information: <Newly Inserted by Act No.8557, Jul. 27, 2007>
1. Average balance of deposits and other materials or information prescribed by Presidential Decree (hereinafter referred to as "financial information") out of materials or information on financial assets and financial transactions under subparagraphs 2 and 3 of Article 2 of the Act on Real Name Financial Transactions and Confidentiality;
2. Debts and other materials or information prescribed by Presidential Decree (hereinafter referred to as "credit information") out of credit information under subparagraph 1 of Article 2 of the Use and Protection of Credit Information Act;
3. Premiums paid for the insurances purchased under the subparagraphs of Article 4 (1) of the Insurance Business Act, and other materials or information prescribed by Presidential Decree (hereinafter referred to as "insurance information").
(3) Matters necessary for pension applicants, methods and procedures for filing an application, and payment under paragraph (1), and the methods and procedures for giving consent under paragraph (2) shall be prescribed by Presidential Decree. <Amended by Act No. 8557, Jul. 27, 2007>
law view
 Article 7 (Investigations, Inquiries, etc.)   print
(1) The Minister of Health and Welfare or the head of a local government may require pension applicants, qualified recipients, pensioners, and their spouses and employers (hereafter in this paragraph referred to as "qualified recipients, etc.") to submit necessary documents or other materials regarding income and/or assets, etc. for the purpose of ascertaining the accrual or forfeiture of the right to receive a senior pension, and cause his/her officials to investigate documents, etc. by entering the residence and other necessary places of the qualified recipients, etc. or ask related persons necessary questions. <Amended by Act No, 8852, Feb. 29, 2008; Act No. 9932, Jan. 18, 2010>
(2) The Minister of Health and Welfare or the head of a local government may ask the head of a related agency to provide materials pertaining to financial information, credit information, insurance information, information on commencement of imprisonment and the release of inmates imprisoned in correctional institutions or medical treatment and detention center, national or local taxes, land, buildings, health insurance, national pension, immigration, etc., which are required to perform investigations under paragraph (1) or the basic senior pension projects. In such cases, the head of a related agency who has received such request for provision of materials shall comply with such request unless there are particular reasons to the contrary. <Amended by Act, No. 8557, Jul. 27, 2007; Act No. 8852, Feb. 29, 2008; Act No. 9932, Jan. 18, 2010; Act No. 10508, Mar. 30, 2011>
(3) Each person who makes entry, investigation and inquiries as prescribed in paragraph (1) shall carry a certificate indicating his/her authority and present it to persons concerned.
(4) Where a qualified recipient or pensioner refuses to submit documents or materials under paragraph (1) or refuses, obstructs or evades investigations and inquiries, the Minister of Health and Welfare or the head of a local government may reject the application for the payment of a pension or cancel, stop or suspend the decision to pay a pension. <Amended by Act No. 8852, Feb. 29, 2008; Act No. 9932, Jan. 18, 2010>
(5) Other necessary matters concerning the scope, timing and content of the investigations and inquiries under paragraph (1) shall be prescribed by Presidential Decree. <Newly Inserted by Act No. 8557, Jul. 27, 2007>
law view
 Article 7-2 (Provision of Financial Information, etc.)   print
(1) Notwithstanding Article 4 (1) of the Act on Real Name Financial Transactions and Confidentiality and Article 32 (1) of the Use and Protection of Credit Information Act, the Minister of Health and Welfare may request the heads of financial companies, etc. (referring to financial institutions as defined in subparagraph 1 of Article 2 of the Act on Real Name Financial Transactions and Confidentiality and credit information collection agencies as defined in Article 25 of the Use and Protection of Credit Information Act: hereinafter the same shall apply) to provide financial information, credit information or insurance information (hereinafter referred to as "financial information, etc.") in accordance with electronic documents converted from the written consents submitted by pension applicants and their spouses under Article 6 (2). <Amended by Act No. 8852, Feb. 29, 2008; Act No. 9617, Apr. 1, 2009; Act No. 9932, Jan. 18, 2010; Act No. 10854, Jul. 14, 2011>
(2) Notwithstanding Article 4 (1) of the Act on Real Name Financial Transactions and Confidentiality and Article 32 (1) of the Use and Protection of Credit Information Act, the Minister of Health and Welfare, if he/she deems it necessary to review the right to receive a senior pension of a pensioner (including his/her spouse), may ask the heads of financial institutions, etc. to provide financial information, etc. by means of a document describing his/her personal information or information and communications network, in accordance with the standards prescribed by Presidential Decree. <Amended by Act No. 8852, Feb. 29, 2008; Act No. 9617, Apr. 1, 2009; Act No. 9932, Jan. 18, 2010>
(3) Notwithstanding Article 4 of the Act on Real Name Financial Transactions and Confidentiality and Article 32 of the Use and Protection of Credit Information Act, the heads of financial institutions, etc. which have been requested to provide financial information, etc. under paragraphs (1) and (2), shall provide financial information, etc. of the owner. <Amended by Act No. 9617, Apr. 1, 2009>
(4) Notwithstanding Article 4-2 (1) of the Act on Real Name Financial Transactions and Confidentiality and Article 35 of the Use and Protection of Credit Information Act, the heads of financial institutions, etc. which provide financial information, etc. under paragraph (3), may not notify an owner of the provision of his/her financial information, etc.: Provided, That such notification shall be made when there is a request by the owner. <Amended by Act No. 9617, Apr. 1, 2009>
(5) A request to provide financial information, etc. and the provision thereof under paragraphs (1) through (3) shall be carried out by means of the information and communications network under Article 2 (1) 1 of the Act on Promotion of Information and Communications Network Utilization and Information Protection, etc.: Provided, That this shall not apply to unavoidable circumstances, such as damage to the information and communications network, etc.
(6) Any person who is engaged in the business affairs prescribed in paragraphs (1) through (3) and any person who is delegated or entrusted with the authority under Article 21, shall neither provide nor disclose financial information, etc. obtained in the process of performing his/her duties to other persons for purposes other than those prescribed by this Act.
(7) Necessary matters concerning requests to provide financial information, etc. and the provision thereof under paragraphs (1) through (3) and (5) shall be prescribed by Presidential Decree.
[This Article Newly Inserted by Act No. 8557, Jul. 27, 2007]
law view
 Article 8 (Period and Timing for Payment of Pensions)   print
(1) Where a person is determined as a qualified recipient under Article 6, a pension shall regularly be paid to the person, on a monthly basis, from the month on which the date of application for the pension falls to the month on which the date of termination of the right to receive a senior pension falls.
(2) Where a ground for suspension of the payment of a pension has accrued, the pension shall not be paid from the month following the month on which the date of accrual of such ground falls to the month on which the date of extinguishment of such ground falls.
law view
 Article 9 (Pensions Payable)   print
(1) Where a pensioner is deceased and there exists any accrued pension payable to the pensioner, a dependent who has shared the same livelihood with the pensioner at the time of his/her death (referring to his/her spouse, lineal descendant and his/her spouse) may claim such pension payable. In such cases, the Minister of Health and Welfare or the head of a local government shall determine, without delay, whether to pay such pension payable. <Amended by Act No. 8852, Feb. 29, 2008; Act No. 9932, Jan. 18, 2010>
(2) Necessary matters concerning the procedure for and method of claiming any pensions payable, eligibility requirements for dependents, and the payment priority, etc. under paragraph (1) shall be prescribed by Presidential Decree.
law view
 Article 10 (Suspension of Payment)   print
If a pensioner in whose case his/her imprisonment without labor or heavier punishment is not completely executed or exempted, no pension is payable to him/her during the imprisonment period in correctional institutions under the Administration and Treatment of Correctional Institution Inmates Act or in medical treatment and detention centers under the Medical Treatment and Custody Act. <Amended by Act No. 10508, Mar. 30, 2011>
law view
 Article 11 (Forfeiture of Right to Receive Senior Pensions)   print
A qualified recipient's right to receive a senior pension shall be forfeitable if he/she falls under any of the following subparagraphs:
1. When he/she is deceased;
2. When he/she loses nationality or moves overseas;
3. When he/she fails to meet the requirements to receive benefits under Article 3.
law view
 Article 12 (Recovery of Undue Gains)   print
(1) Where a person who does not have the right to receive a senior pension has been paid pension benefits, the Minister of Health and Welfare or the head of a local government shall collect the amount paid, as prescribed by Presidential Decree. <Amended by Act No. 8852, Feb. 29, 2008; Act No. 9932, Jan. 18, 2010>
(2) Where a person who is supposed to return the amount paid under paragraph (1) fails to do so, it shall be collected by referring to the practices of dispositions on default of the national or local taxes.
law view
 Article 13 (Protection of Right to Receive Senior Pensions)   print
(1) The right to receive a senior pension shall not be transferred, seized, or provided as collateral.
(2) No money and valuables provided as pension benefits shall be seized.
law view
 Article 14 Deleted.<by Act No. 8557, Jul. 27, 2007>   print
law view
 Article 15 (Filing of Appeal)   print
(1) A person who is dissatisfied with the eligibility requirements of a qualified recipient or other dispositions in accordance with this Act, may file an appeal with the Minister of Health and Welfare or the head of a local government. <Amended by Act No. 8852, Feb. 29, 2008; Act No. 9932, Jan. 18, 2010>
(2) The filing of an appeal under paragraph (1) shall be made in writing within 90 days from the date on which the person concerned is aware of such disposition: Provided, That where he/she has attested that such filing could not be carried out within the aforementioned period of time on justifiable grounds, he/she may file an appeal within 60 days from the date on which such grounds are extinguished.
law view
 Article 16 (Prescription)   print
The period of prescription of the right of the State and local governments to collect undue gains and the right of a qualified recipient under Article 12 shall expire unless they are exercised for five years.
law view
 Article 17 (Treatment of Fractional Amount)   print
In calculating undue gains under this Act, any fractional amount of less than 1,000 won shall be written off.
law view
 Article 18 (Reporting)   print
Where a ground for forfeiture of the right to receive a senior pension has accrued, a pensioner shall report such to the Minister of Health and Welfare or the head of a local government, as prescribed by Ordinance of the Ministry of Health, Welfare and Family Affairs: if the pensioner is deceased, a person liable to report under Article 88 of the Family Register Act shall report his/her death to the Minister of Health and Welfare or the head of a local government, within such period as specified by Ordinance of the Ministry of Health and Welfare. <Amended by Act No. 8852, Feb. 29, 2008; Act No. 9932, Jan. 18, 2010>
law view
 Article 19 (Liability to Award Pensions)   print
The liability to award pensions shall be borne by the State or local governments, as prescribed by any of the following subparagraphs: <Amended by Act No. 8852, Feb. 29, 2008; Act No. 9932, Jan. 18, 2010>
1. The State shall bear the ratio prescribed by Presidential Decree within the scope of not less than 40/100 but not more than 90/100 in consideration of the ratio of the senior citizens and financial circumstances of a local government;
2. The expenses less the amount borne by the State under subparagraph 1 shall be mutually assumed by the Special Metropolitan City, Metropolitan Cities, Dos or a Special Self-Governing Province (hereinafter referred to as "Cities/Dos") and Sis, Guns and Gus (referring to autonomous Gus; hereinafter the same shall apply): Provided, That the allotment ratio shall be determined by Ordinance of Cities/Dos in consideration of the ratio of the senior citizens and financial circumstances of a local government, and prior consultation shall be made with the Minister of Health and Welfare.
law view
 Article 20 (Reduction and Exemption of Taxes and Other Public Dues)   print
Taxes and other public dues for a pension paid under Article 8 shall be reduced or exempted pursuant to the Restriction of Special Taxation Act, other Acts, or Ordinance of a local government.
law view
 Article 20-2 (Establishment and Operation of Information System for Basic Senior Pension)   print
The Minister of Health and Welfare may establish and operate the basic senior pension information system to efficiently handle a variety of materials or information required to conduct basic senior pension projects in relation to Articles 6 through 12, 14, 15, 18 and 23 and process the recording and management business through the computer system, as prescribed by Presidential Decree. <Amended by Act No. 8852, Feb. 29, 2008; Act No. 9932, Jan. 18, 2010>
[This Article Newly Inserted by Act No. 8557, Jul. 27, 2007]
law view
 Article 21 (Delegation and Entrustment of Authority)   print
(1) Part of the authority held by the Minister of Health and Welfare under this Act may be delegated to the Special Metropolitan City Mayor, Metropolitan City Mayors, Do governors, the Governor of a Special Self-Governing Province (hereinafter referred to as "City Mayors/Do Governors") or the heads of Sis/Guns/Gus (referring to the heads of autonomous Gus; hereinafter the same shall apply), as prescribed by Presidential Decree. <Amended by Act No. 8852, Feb. 29, 2008; Act No. 9932, Jan. 18, 2010>
(2) The following duties of the Minister of Health and Welfare or the head of a local government may be commissioned to the National Pension Service under Article 24 of the National Pension Act, as prescribed by Presidential Decree. <Amended by Act No.8557, Jul. 27, 2007; Act No. 8852, Feb 29, 2008; Act No. 9932, Jan. 18, 2010>
1. Receipt of application for a pension under Article 6 (1);
2. Support for investigations and inquiries by public officials under Article 7 (1);
3. Receipt of application for an appeal filed under Article 15 (1);
4. Receipt of report of a ground for forfeiture of the right to receive a senior pension under Article 18;
4-2. Matters concerning establishment and operation of the basic senior pension information system under Article 20-2;
5. Other matters concerning support for the management of pensioners prescribed by Presidential Decree.
law view
 Article 22 (Penal Provisions)   print
(1) Any person who provides or discloses financial information to other persons in violation of Article 7-2 (6) shall be punished by imprisonment for not more than five years or a fine not exceeding 30 million won.
(2) Any person who provides or discloses credit information or financial information to other persons in violation of Article 7-2 (6) shall be punished by imprisonment for not more than three years or a fine not exceeding 20 million won.
(3) Any person who is paid a pension by fraudulent or other wrongful means shall be punished by imprisonment for not more than one year or a fine not exceeding 5 million won.
[This Article Wholly Amended by Act No. 8557, Jul. 27, 2007]
law view
 Article 22-2 (Joint Penal Provisions)   print
Where the representative of a corporation, or an agent, employee, or other servant of a corporation or an individual violates Article 22 (1) or (2) in connection with the business of the corporation or individual, not only shall such offender be punishable accordingly, but the corporation or individual shall also be punishable by a fine prescribed in the relevant provisions; Provided, That, this shall not apply where corporations or individuals continuously pay attention to and supervise relevant tasks in order to prevent such violation. <Amended by Act No. 10508, Mar. 30, 2011>
[This Article Newly Inserted by Act No. 8557, Jul. 27, 2007]
law view
 Article 23 (Fines for Negligence)   print
(1) Any person who fails to submit documents or other materials pertaining to his/her income and assets under Article 7, provides false materials, or refuses, obstructs or evades investigations and inquiries, or provides false answers, without any justifiable ground, shall be punished by a fine for negligence not exceeding 200,000 won.
(2) Any person who fails to file a report under Article 18 without any justifiable ground shall be punished by a fine for negligence not exceeding 100,000 won.
(3) Fines for negligence under paragraphs (1) and (2) shall be levied and collected by the Minister of Health and Welfare, the City Mayors/Do Governors, and the heads of Sis/Guns/Gus (hereinafter referred to as "competent authorities"), as prescribed by Presidential Decree <Amended by Act No. 8852, Feb. 29, 2008; Act No. 9932, Jan. 18, 2010>
(4) Any person who is dissatisfied with the disposition of a fine for negligence under paragraph (3) may raise an objection to the competent authorities within 30 days from the date on which he/she received a notice of such disposition.
(5) If a person who is subject to the disposition of a fine for negligence under paragraph (3) raises an objection as described in paragraph (4), the competent authorities shall, without delay, notify the competent court thereof, and the court in receipt of such notice shall submit the case to a trial for a fine for negligence pursuant to the Non-Contentious Case Litigation Procedure Act.
(6) If no objection is raised within the period under paragraph (4) nor a fine for negligence paid, such fine for negligence shall be collected by referring to the practices of dispositions on default of national or local taxes.
ADDENDA
Article 1 (Enforcement Date)
This Act shall enter into force on January 1, 2008.
Article 2 (Preparations for Enforcement of Act)
(1) If the Minister of Health, Welfare and Family Affairs deems it necessary to enforce this Act, he/she may request other central administrative agencies or local governments, public organizations, and other relevant persons to provide cooperation, including submission of necessary materials required to enforce this Act, before this Act's entry into force.
(2) The central administrative agencies or local governments, public organizations, and other relevant persons which have been requested to provide cooperation under paragraph (1), shall duly comply with such request.
(3) If the Minister of Health, Welfare and Family Affairs or the head of a local government deems it necessary to enforce this Act, he/she may receive applications from a qualified recipient or his/her relatives or other relevant persons, or carry out investigations required to determine the payment of a pension before this Act's entry into force.
Article 3 (Special Cases for Objects of Pension Payments)
(1) Notwithstanding Article 3, a person falling under any of the following subparagraphs shall be eligible to receive a pension under this Act until June 30, 2008:
1. A person who was born before December 31, 1937 and whose evaluated amount of income is less than the amount prescribed by Presidential Decree under Article 3;
2. A person who has already been provided an old-age pension under the Welfare of the Aged Act at the time this Act enters into force;
3. A recipient of basic assistances under the National Basic Living Security Act who is 65 years of age or older.
(2) The State shall make the number of pensioners account for 60/100 of those who are 65 year of age or older when the first pension is paid after July 1, 2008, and make the number of pensioners account for 70/100 of those who are 65 year of age or older as of January 1, 2009.
Article 4 (Transitional Measures for Pension Applications)
(1) Any person who is paid an old-age pension in accordance with the Welfare of the Aged Act at the time of the enforcement of this Act (including those who were determined as a pensioner for an old-age pension and those who applied for an old-age pension before December 31, 2007) shall be deemed to apply for a pension under Article 6 on the coming into operation of this Act.
(2) Any person who is 65 years of age or older and becomes a recipient of basic assistances under the National Basic Living Security Act by June 30, 2008 after this Act's entry into force, and a recipient of basic assistances under the National Basic Living Security Act at the time of the enforcement of this Act who turns 65 years of age or older by June 30, 2008 after this Act's entry into force, shall be deemed to be a person who applies for a pension under Article 6 on the date when he/she is determined to be a recipient of basic assistances or on the date when he/she turns 65 years old, respectively.
Article 4-2 (Transitional Measures for Phased Increase of Pension Benefits)
(1) The pension benefits under the main sentence of Article 5 (1) shall be increased incrementally until 2028 up to the amount equivalent to 10/100 of the amount under Article 51 (1) 1 of the National Pension Act.
(2) In order to discuss financing as required from the adjustment of pension benefits under paragraph (1), and the timing and method of such upward adjustment, integration of the basic senior pension and national pension, etc., there shall be established and operated a Pension Plan Improvement Committee under the jurisdiction of the National Assembly starting January 2008.
Article 5 Omitted.
ADDENDA<No. 8557, Jul. 27, 2007>
Article 1 (Enforcement Date)
This Act shall enter into force on January 1, 2008.
Article 2 (Preparations for Enforcement of Act)
(1) If the Minister of Health, Welfare and Family Affairs or the head of a local government deems it necessary to enforce this Act, he/she may allow a pension applicant or his/her spouse to submit a written consent under the amended provisions of Article 6 (2), together with an application described in Article 2 (3) of the Addenda to the Basic Senior Pensions Act (Act No. 8385) before this Act's entry into force.
(2) If the Minister of Health, Welfare and Family Affairs or the head of a local government deems it necessary to enforce this Act, he/she may request the heads of financial institutions, etc. to provide financial information, etc. under the amended provisions of Article 7-2 (1) before this Act's entry into force.
(3) Upon receiving requests under paragraph (2), the heads of financial institutions, etc. shall provide the financial information, etc. unless there are particular reasons to the contrary.
(4) If the Minister of Health, Welfare and Family Affairs deems it necessary to enforce this Act, he/she may take actions required to establish and operate the basic senior pension information system under the amended provisions of Article 20-2 before this Act's entry into force.
ADDENDA<No. 8852, Feb. 29, 2008>
Article 1 (Enforcement Date)
This Act shall enter into force on the date of its promulgation. (Proviso omitted.)
Articles 2 through 7 Omitted.
ADDENDA<No. 9617, Apr. 1, 2009>
Article 1 (Enforcement Date)
This Act shall enter into force six months after the date of its promulgation.
Articles 2 through 13 Omitted.
ADDENDA<Act No. 9932, Jan. 18, 2010>
Article 1 (Enforcement Date)
This Act shall enter into force two months after the date of its promulgation. (Proviso Omitted.)
Articles 2 through 5 Omitted.
ADDENDUM<Act No. 10508, Mar. 30, 2011>
This Act shall enter into force three months after the date of its promulgation.
ADDENDA<Act No. 10854, Jul. 14, 2011>
Article 2 (Enforcement Date)
This Act shall enter into force on the date of its promulgation. (Proviso Omitted.)
Articles 2 through 3 Omitted.