Main Contents of Revision on「ACT ON THE GUARANTEE OF EMPLOYEES' RETIREMENT BENEFITS」Act No.18038 [Amendment Date 13. April, 2021] [Enforcement Date 14. April, 2022]

1. Individual Retirement Pension Plan (IRP) Account Transfer and Exceptions
- The retirement allowance must be paid by transferring it to the IRP account.
- The Enforcement Decree mandates following for exceptions, (e.g. a pension holder retires after the age of 55)

2. Expansion of institutions entrusted education for pension holders
- The existing Ordinance of the Ministry of Employment and Labor stipulated that only mailing and face-to-face training are possible during the initial training
→ Education through e-mail and online education using information and communication networks are possible during the first training of subscribers

3. Administrative fines for insufficient minimum reserves in the Defined Benefit Plan
- Fiscal stabilization plan, which requires equal resolution of the existing reserve shortage within three years → Changed to a plan that resolves at least one-third of the insufficient ratio to the minimum reserve within one year.
- In case of employers, if measures to resolve the shortage of reserves are not taken, fine is imposed.

4. Clarification of laws and regulations governed by administrative interpretation
- Grounds for excluding the period and the total amount of wages are specified, when calculating the contributions through precedents and administrative interpretation
- In case of Defined Benefit Plan, the criteria for calculating charges and the timing of payment are clarified when past working periods is retroactively applied
Criteria for calculating the amount of contribution : the larger amount between "one-twelfth of the total annual wage for one year of the past working period" and "average wage for 30 days for one year of the past working period"
- Time of Payment : Payment on the date determined to include the past working period in the period of contribution

5. Clarification of early withdrawal requirements for the Individual Retirement Pension System (IRP)
- IRP special case presupposes that employees work in the workplace. Therefore, the requirements for withdrawal of the Defined Contribution Retirement Pension Plan are applied in the case of the IRP special case.