NPS- National Pension Plan Coverage ( please ready every details)

                                      

(1) General criteria for coverage

The general criteria for National Pension coverage are age and residence; income is not included. Accordingly, all Korean residents in Korea aged between 18 and 59, regardless of their income, are covered under the National Pension. Foreign residents residing in Korea whose ages are between 18 and 59 are also covered under the National Pension, apart from some exceptional cases (refer to “Foreigners and Lump-sum Refund”).

(2) Who is excluded from national pension scheme coverage?

Those falling under any of the following categories are excluded from national pension coverage, even if they satisfy the general criteria for coverage:

Government employees, military personnel, private school teachers, specially designated employees working for post offices (they are covered under separate pension plans) and national pension beneficiaries aged between 55 and 59, such as early or old-age pensioners.

(3) Exceptional cases

Anyone aged less than 18 and working at a workplace covered under the National Pension may participate in the National Pension as a Workplace-based Insured Person, with the consent of his/her employer. Additionally, when an insured person with an insured period of more than 1 month reaches the age of 60 and wants to contribute continuously to be entitled to an old-age pension or to receive more pension, he/she may apply for continuous coverage under the National Pension before he/she reaches the age of 65.

Those who are insured under the National Pension are largely divided into Mandatorily and Voluntarily Insured Persons. Mandatorily Insured Persons are subdivided into Workplace-based Insured Persons and Individually Insured Persons. The difference between Workplace-based Insured Persons and Individually Insured Persons is how the national pension contribution is made. The contribution for a Workplace-based Insured Person is equally shared by the employer and the employee, while the contribution for the Individually Insured Person is totally levied on the insured person.

Voluntarily Insured Persons are subdivided into Voluntarily Insured Persons and Voluntarily & Continuously Insured Persons. They may participate in the National Pension upon his/her request.

(1) Workplace-based Insured Persons

The contribution for a Workplace-based Insured Person is equally shared by the employer and the employee. Acquisition or loss of insured status and payment of contributions are made by the employer. All employees and employers aged between 18 and 59 who are working at a workplace with one or more employees shall be covered as Workplace-based Insured Persons. Those who are aged less than 18 and working at a workplace covered under the National Pension may participate in the National Pension with the consent of their employers.

(2) Individually Insured Persons

The contribution for the Individually Insured Person is completely paid by the insured person. Acquisition or loss of insured status is done through application by the insured person. A person who is subject to the general criteria for coverage, but is not a Workplace-based Insured Person nor a Voluntarily Insured Person becomes an Individually Insured Person when he/she falls under one of the following categories:

The self-employed; a person without any income aged 27 or older; a person without any income aged between 18 and 27 who has paid at least one month's contribution

(3) Voluntarily Insured Persons

A Voluntarily Insured Person is not subject to mandatory coverage but can acquire insured status upon his/her application, bearing the total contribution cost him or herself. All Voluntarily Insured Persons can be covered upon their request. In this case their monthly contributions would be determined by median or more value of the Standard Monthly Income of all Workplace-based and Individually Insured Persons, except for those protected under the National Basic Living Security Act. A person falling under any of the following categories may become a Voluntarily Insured Person.

• A person without any income whose spouse is an insured person or a beneficiary under a public pension (Public pensions include the National Pension, Government Employees’ Pension, Military Personnel Pension, Private School Teachers’ Pension, and Specially Designated Post Office Employees’ Pension);
• A person without any income who is less than 27 years old and has never paid any contributions;
• A person protected under the National Basic Living Security Act;
• Retired persons entitled to benefits under the Government Employees’ Pension, Military Personnel Pension, Private School Teachers’ Pension, and Specially Designated Post Office Employees’ Pension.

(4) Voluntarily & Continuously Insured Persons

A currently or formerly insured person loses his/her insured status upon reaching the age of 60. But those who want to contribute continuously to fulfill the minimum insured period for the Old-age Pension or to increase the amount of pension benefits may continue to participate in the National Pension upon their application.

A currently or formerly insured person, including foreigners who have reached the age of 60, or employees with special occupations, such as miners or fishermen under the age of 60 who are entitled to the Old-age Pension, may be covered as a Voluntarily & Continuously Insured Person.

A person falling under any of the following categories cannot be covered as a Voluntarily & Continuously Insured Person:

• A person who received a Lump-sum Refund due to reaching the age of benefit eligibility or disqualification of voluntarily & continuously insured status;
• A person who has never paid any contributions (the person may be covered as a Voluntarily & Continuously Insured Person after paying an unpaid contribution.)
• A person who has been exempt from the payment of contribution for the whole of his/her insured period
• An old-age pension beneficiary Voluntarily & Continuously Insured Person is divided into the Voluntarily & Continuously Workplace-based Insured Person, the Voluntarily & Continuously Individually Insured Person and the Other Voluntarily & Continuously Insured Person.

Voluntarily & Continuously Insured Persons pay all contributions themselves. The income criteria for a Workplace-based Insured Person are applied correspondingly to a Voluntarily & Continuously Workplace-based Insured Person. The income criteria for the Voluntarily & Continuously Individually Insured Person are the same as the criteria for the Individually Insured Person. The income criteria for other Voluntarily & Continuously Insured Persons are the same as the criteria for the Voluntarily Insured Person.

 

Source: ww.nps.go.kr