“Company delinquent national pension premiums, overdue interest payments are recognized as subscription period”

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In the future, if a workplace defaults on pension insurance premiums, the insurance period will be recognized if the employee pays interest on the premiums 10 years after the payment deadline.

The Ministry of Health and Welfare (Minister Kwon Deok-cheol) announced that a partial amendment to the National Pension Act was approved at the State Council meeting on the 23rd.

The Ministry of Health and Welfare explained that this enforcement ordinance was prepared to stipulate the matters entrusted to the enforcement ordinance in accordance with the revision of the ‘National Pension Act’ (to be implemented on 2 January 2nd), and to improve and supplement shortcomings in the operation of the national pension system.

First of all, additional interest is stipulated for paying workers’ arrears in insurance premiums. If the workplace is in arrears in pension insurance premiums, the insurance period can be recognized by adding interest (the interest rate for one-year fixed deposits) to the premiums 10 years after the payment deadline. made it possible

The interest rate on the one-year term deposit is 0.7% as of this year, which is lower than the interest rate on the national tax refund (1.2%) or the interest rate on the 3-year term deposit (0.8%), the Ministry of Health and Welfare explained.

If a company pays national pension premiums that have not been paid for 10 years, the Health Insurance Corporation will return it to the worker with an interest rate (1.2%) added to the national tax refund if arrears are paid or collected from the employer.

At the same time, the deduction amount for overpayment of pension benefits based on income activity is set to 1/2 of the pension amount, and for beneficiaries without income, it cannot exceed one-fifth to ensure a stable life for beneficiaries.

Jeong Ho-won, director of the Pension Policy Bureau of the Ministry of Health and Welfare, said, “We expect that the improvement of the individual workers’ arrears insurance premium payment system will strengthen workers’ right to receive pensions and contribute to ensuring stable retirement income by improving the settlement method for pensioners with no income.” .



Reference-www.insjournal.co.kr

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