Payment of Retirement Benefits
Payment of retirement benefits- Retirement benefitsunder defined benefit pension plans or defined contribution pension plans shallbe paid in the form of a monthly annuity or in a lump sum. The eligibilityrequirements of recipients shall be as follows (Article 17(1) and Article 19(2)) of the Act on the Guarantee of Workers’ Retirement Benefits):
· Annuities are paid to persons aged 55 years or older who have paid contributions over at least 10 years (payout period is a minimum of fiveyears).
· Lump-sum benefits arepaid to pension holders who fail to meet the eligibility requirements toreceive annuities or wish to receive lump-sum benefits.
- Retirement benefits shall be paid in the way of transfer to the accountof an individual retirement pension plan, etc. that isdesignated by the pension holder (the main text of Article 17(4) of the Acton the Guarantee of Employees’ RetirementBenefits).
- The above shall not apply in any of the following cases (Proviso toArticle 17(4) of the Act on the Guarantee of Employees’Retirement Benefits, Article 9 and subparagraphs 3 through 5 of Article 3-2 ofthe Enforcement Decree thereof, and Notice on Allowable Cases and Amounts for Non-Transferto Individual Retirement Plans):
· Where a pension holder receives retirement benefits after retiring at the age of 55 or over.
· Where a pension holder repays the loan secured against benefits with retirement benefits.
※ In this case, the amount which is not transferred to the accountof an IRP plan or the copayment account of the SME retirement pension fund plan designatedby the pension holder does not exceed the amount of the loan repayment.
· Where the total amount ofbenefits is 3 million won or less.;
· Where the worker dies;
· Where a retired worker who has provided labor services inKorea with a status of stay that allows him/her to be employed under Article23(1) of the Enforcement Decree of the Immigration Act leaves the country afterretirement;
· Where other laws andregulations require that all or part of the salary be deducted.