Article Content

  Chapter Ⅲ Payment of Annuity Insurance Premium

Article 20
The monthly allocation of wages for the payment of annuity insurance premium by employers shall be made based on the monthly wages of workers in accordance with the standards of the Monthly Contribution Classification Table of Labor Pension under Paragraph 5 of Article 14 of the Act, and shall be reported to the insurers.
If the monthly wages of workers are not in a fixed amount, the report shall be made based on the average wages of the last three months; if the wages of new workers have not been ascertained, the report shall be made temporarily based on the wages of workers in the same category of work.
Where workers participating in annuity insurance are concurrently insured by labor insurance or national health insurance, except those whose total amount of monthly wages is below the floor of the "Table of Grades of Insured Salary" of labor insurance, the amount of monthly allocation of wages shall not be less than the insurance wages of labor insurance or the insurance amount of the national health insurance.
Article 21
The amount of the annuity insurance premiums borne by the employer for staff governed under Article 7, Paragraph 2, subparagraph 3 or 4 may be within six percent of the worker's monthly wage.
Persons designated by subparagraph 1, subparagraph 3 or 4 of the second paragraph of Article 7 may voluntarily deposit the annuity insurance premiums within six percent of their monthly salary or monthly income from professional practice.
Employers who actually choose to appropriate their annuity insurance premium contributions as designated by Paragraph 2, subparagraph 1of Article 7 shall process such contributions along with their workers.
Article 22
Employers shall, within 7 days from a worker's resignation/termination, reinstatement, death, being on leave without pay, enlistment, suspension from duties or detention due to any court case, report/apply in writing to the insurer to commence or cease payment of the annuity insurance premium.
In the event that an employer is required to make up the wages of a reinstated worker for the period of his/her suspension from duties or detention due to a court case, the employer shall make up the payment of the annuity insurance premium prior to the end of the month immediately after the month in which the worker is reinstated.
When employers cease paying annuity insurance premiums in accordance with Paragraph 1, withholding of workers' voluntary payment shall simultaneously cease; provided, however, if the annuity insurance contract provides otherwise, such provision shall be complied with.
If workers make voluntary payment in accordance with the proviso in the preceding Paragraph, the period of voluntary payment shall not be included in the years of service referred to in Article 42 herein.
Article 23
Where workers voluntarily pay additional annuity insurance premium, the employer shall inform the insurer and may withhold the amount from their wages for payment to the insurer along with the portion responsible by the employer. Where the workers are unwilling to make payment, they shall notify the employers, and the employers shall notify the insurer to cease processing the portion of voluntary payment.
Article 24
If there is any change or error in the name, sex/gender, date of birth and national identification or resident certificate number of any person participating in annuity insurance, the employer shall immediately fill out an application for change of his/her information and submit the same, along with photocopies of the national identification card, resident certificate or relevant documents, to the insurer for processing the change.
If there is any omission in the application/report information submitted by the employer, the employer shall make the correction within 10 days from the day following receipt of the written notice from the insurer.
Article 25
The insurer shall make and send the payment statement of the annuity insurance premium to be bore by the employer and to be paid voluntarily by the worker to the business entity before the 25th day of the next month, and the employer shall make payment by the end of the following month. The insurer shall report the employer's payment status to the BLI before the 7th day of the month following the due date.
If the employer has not received the payment statement from the insurer by the 15th day of each month, it shall first make payment based on the amount of the previous term and notify the insurer to re-send the payment statement.
If the employer fails to pay the annuity insurance premium, the insurer shall demand payment immediately and require the employer to make payment by the end of the month following the due date. The result of claim shall be reported to the BLI by the 7th day of month following the payment due month.
Article 26
The annuity insurance premium shall be calculated on a 30-day monthly basis.
The total annuity insurance premium paid for each worker by an employer shall be calculated by the dollar and rounded to the nearest dollar.
Article 27
If an employer fails to make full payment of the amount payable by the employer stated in the payment statement of annuity insurance premium, the insurer shall directly allocate the payment made by the employer inproportion to the amounts payable for each worker.
Article 28
If there is any discrepancy between the amount stated in the statement of payment of annuity insurance premium and the amount payable by the employer, the employer shall first pay the stated amount in full and submit reasons for adjustment to the insurer. After verification by the insurer, the amount shall be settled with the amount of payment for the nearest month.
Article 29
Employers shall state the amount of the annuity insurance premium they paid for workers on the salary sheets of workers or otherwise separately inform them in writing. The amount of annuity insurance premium voluntarily paid by workers shall also be stated.
At the end of the year, the insurer shall separately issue receipts to the workers.
Article 30
When handling the process for purchasing insurance for workers or other procedures on their behalf, employers shall not collect any fee from the workers or insurer.
Article 31
For annuity insurance premiums paid by employers and the portion voluntarily paid by workers, insurers shall set up a separate account, prepare books of accounts, and explicitly record the rate of payment, period of payment and amount. When insurers assume transferred policies, this provision shall also apply.
Article 32
Each month insurers shall prepare a statement to inform employers, stating the policy value reserve of each worker as of the end of the previous month, and employers shall inform their workers of the same.
Article 33
After receiving the annuity insurance premium, insurers shall issue a receipt of the premium to the employers by the 7th day of the following month, and submit to the BLI the information of purchase of annuity insurance and the annuity insurance premium it received in accordancewith the requirements of the BLI.
Article 34
Workers who are covered by this Act working in business entities that implement the annuities insurance scheme may change their original choice of the pension fund mechanism in accordance with the provision of the Article 35-2 of the Act. Such change shall become effective on the 1st day of the month following the employer's application/report.
Article 35
Where a worker participating in annuity insurance leaves office and is employed later on, the new employer shall be the applicant of his/her annuity insurance and continue to pay the premium.
Where a worker leaves office and is not employed later on, or where the worker is re-employed after leaving office and chooses to participate in the annuity insurance provided by the new employer, the applicant of the original annuity insurance shall be changed to the worker himself/herself. The worker may choose to continue or suspend payment of the premium or process reduction of the premium, and to continue to accumulate returns based on the policy value reserve at the time of change.
Where a worker leaves office and is re-employed later on, if he/she applies for transferring the policy value reserve of the original annuity insurance to the annuity insurance provided by the new employer, the original insurer shall complete the transfer procedures within 30 days from the date on which it receives the application in accordance with Article 67 herein.
Article 36
The annuity insurance contract shall not provide that for persons whose period for accumulating policy value reserve has already exceeded 4 years, a change of insurer, transfer of policy or transfer of policy value reserve shall still not be permitted.
Where the insurer terminates operation of annuity insurance or is involved in merger/acquisition so that the annuity insurance contract is terminated or policy is transferred, the insured shall not be subject to the 4-year restriction referred to in the preceding Paragraph, and he/she may choose a new insurer or transfer the policy value reserve to his/her individual pension account, which the original insurer and the surviving insurer after merger/acquisition shall not refuse.
Calculation of the period referred to in Paragraph 1 shall start from the day on which the employer makes the first payment of the annuity insurance premium for individual workers.
When the annuity insurance contract attains the minimum policy value reserve accumulation period, the insurer shall notify the worker.
If a worker, his/her survivor(s) or designated beneficiary(ies) meets the conditions for receiving pension payment under annuity insurance, the insurer shall not restrict him/her from applying for payment based on the agreement on the minimum policy value reserve accumulation period.
Article 37
Where a business entity terminates the implementation of the Insurance as a result of ceasing operation, dissolution, adjudication of bankruptcy or mutual agreement between the workers and employer, it shall notify the workers by a public notice at least 30 days prior to the date of termination of the implementation and notify the insurer and the competent authority, stating the following matters:
1. Causes of termination;
2. Responsible person of the business entity, trustee in bankruptcy, and liquidator;
3. Plan for transfer of the annuity insurance contract; and
4. Effective date for termination of implementation due to wind-up, dissolution, adjudication of bankruptcy or mutual agreement.
If a business entity has in fact ceased operation, dissolved, adjudicated for bankruptcy, or not in operation, and does not employ any worker, it shall cease paying annuity insurance premium based on the date on which the fact is confirmed.