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ENFORCEMENT DECREE OF THE PRIVATE SCHOOL TEACHERS AND STAFF PENSION ACT

ENFORCEMENT DECREE OF THE PRIVATE SCHOOL TEACHERS AND STAFF PENSION ACT

[Enforcement Date: Feb. 4, 2009] [Presidential Decree No. 20947, Jul. 29, 2008, Other Laws and Regulations Amended]

Ministry of Education, Science and Technology (Educational Organizations Support Division)

Tel.: 02-2100-6330

CHAPTER I GENERAL PROVISIONS

Article 1 (Purpose)

The purpose of this Decree is to provide for the matters delegated by the Private School Teachers and Staff Pension Act and matters necessary for the enforcement thereof.

Article 2 (Grades of Incurable Disease of Bereaved Family and Method of Proof) (1) The status of incurable diseases under Article 2 (2) and (3) of the Private School Teachers and Staff Pension Act (hereinafter referred to as the "Act") shall be those corresponding to incurable diseases of grade 1 through grade 7 as prescribed in Article 55.

(2) The standards for recognition of the fact of the dependents supported by the person at the time of his/her death, who is or was a teacher or a staff member who applies to one of the items of Article 2 (1) 2 of the Act, shall be as stated in the attached Table 1.

(3) Proof of unborn children and grandchildren, and the fact of having incurable diseases under section (1) shall be by a medical certificate issued by the convalescent institutions as prescribed in Article 37 of the Public Officials Pension Act applied mutatis mutandis (hereinafter referred to as the "mutatis mutandis Act") pursuant to the provisions of Article 42 (1) of the Act.

[This Article Wholly Amended by Presidential Decree No. 8174, Jun. 25, 1976] Article 3 (Standard Amount of Monthly Remuneration and Allowance) (1) The standard amount of monthly remuneration prescribed in Article 2 (1) 4 of the Act shall be as follows:

1. The standard amount of monthly remuneration for teachers shall be the monthly remuneration computed according to the relevant teachers' posts, qualifications, etc. pursuant to the provisions applied to public educational officials from the Public Officials Remuneration Regulations;

2. The standard amount of monthly remuneration for public officials in technological or general services among the administrative staffs shall be the monthly remuneration computed according to the grade types and period of service pursuant to the provisions applied to administrative public officials from the Public Officials Remuneration Regulations;

3. The standard amount of monthly remuneration for public officials in technical service among the administrative staff shall be the monthly remuneration computed pursuant to the provisions applied to technical public officials from the Public Officials Remuneration Regulations, and the classification of grades shall be determined by the heads of the schools or school-operating institutions to which they belong (hereinafter referred to as the "school institutions") according to the occupational groups, series of class, and sub-series of the relevant technical positions pursuant to the table of class of technical public officials in the attached Table 2 in the Decree on the Appointment of Public Officials;

4. The standard amount of monthly remuneration for public officials in labor service among the administrative staff shall be the monthly remuneration computed pursuant to the provisions applied to public officials in labor service from the Public Officials Remuneration Regulations.

(2) In applying the Public Officials Remuneration Regulations in respect to the conversion of careers for calculating the periods of service, which are the basis for computing the standard amount of monthly remuneration as prescribed in section (1), the term "public officials" shall be deemed as "public officials, teachers, and administrative staff," and the term "State agencies" shall be deemed as "State agencies and school institutions," respectively. (3) (4) The amount of allowances prescribed in Article 2 (1) 4 of the Act shall be the amount equivalent to the average by dividing the total paid amount of the allowances for proper attendance (excluding the extra additional amount among the additional amount, and the same shall apply in this Article and Article 3-2) for one year, according to the salary class, or grade and salary class (hereinafter referred to as "salary class"), which are the bases for computing the standard amount of monthly remuneration for teachers and administrative staff (hereinafter referred as "teachers and staff") pursuant to the provisions of section (1), by twelve months. In this case, in applying Article 7 (4) of the Regulation on the Allowances, etc. of Public Officials to the allowances for proper attendance of the administrative staff, the term "public officials" shall be deemed as "teachers and staff, and public officials".

[This Article Wholly Amended by Presidential Decree No. 8818, Dec. 31, 1977] Article 3-2 (Amount of Monthly Remuneration for Teachers and Staff Receiving Annual Salary)

The amount of monthly remuneration for teachers and staff who receive annual salary as prescribed in the proviso of Article 2 (1) 4 of the Act shall be the average amount by dividing the total paid amount of the amount equivalent to monthly remunerations as prescribed in the provisions of the following subsections and the allowances for proper attendance computed on the basis of such amount equivalent to monthly remuneration for one year, by twelve months.

1. The amount equivalent to the monthly remuneration computed according to the grade, salary class, and number of years in service, which are delimitated by assuming that the persons who are subject to application of the annual salary system with incentives as prescribed in the laws and regulations including the Public Officials Remuneration Regulations (hereinafter referred to as "remuneration regulations') among the teachers and staffs appointed prior to Dec. 31, 1998, who have been continuously promoted in grades or posts according to the pervious system of grade and salary class as public officials subject to application of the annual salary system; and

2. The amount equivalent to the monthly remuneration computed according to the grade, salary class, and number of years in service, which are delimitated by assuming that the persons who are subject to application of the annual salary system with incentives as prescribed in the remuneration regulations among the teachers and staffs who were appointed or to be appointed after Jan. 1, 1999, who have been continuously promoted in grades or posts from the grade and salary class applicable to the relevant teachers and staff pursuant to the remuneration regulations at the time of appointments. [This Article Wholly Amended by Presidential Decree No. 17909, Feb. 24, 2003] Article 3-3 (Conversion of Average Monthly Remuneration to Present Value) (1) Conversion of the amount of the monthly remuneration as prescribed in the text of Article 2 (1) 5 of the Act and the average amount of monthly remuneration as prescribed in the proviso of the same subsection to present values shall be computed to present values of the year of which the cause for benefits occurs or the payment of pension starts by successively multiplying the increase rates of average remuneration of public officials by year to the amounts of the monthly remuneration or the average amount of monthly remuneration.

(2) In determining the increase rates of average amount of remuneration of public officials applied in converting the amount of monthly remuneration or the average amount of monthly remuneration pursuant to the provisions of section (1) to present values of the relevant year, those publicly announced pursuant to the provisions of Article 3-4 (3) of the Enforcement Decree of the Public Officials Pension Act shall be applied.

[This Article Newly Inserted by Presidential Decree No. 17096, Dec. 30, 2000] CHAPTER II THE KOREA TEACHERS PENSION CORPORATION Article 4 (Registration of Establishment)

The matters of registration of the Korea Teachers Pension (hereinafter referred to as the "KTP") shall be as follows:

1. Purpose;

2. Name;

3. Locations of its main office and branch offices;

4. Names and addresses of officers; and

5. Methods of public announcements. Article 5 (Registration of Establishment of Branch Offices) (1) In the event that the KTP has established branch offices pursuant to the provisions of Article 6 of the Act, it shall register the following

1. The name and location of the newly established branch office within two weeks at the seat of its main office;

2. The matters prescribed in the subsections of Article 4 within three weeks at the seat of its newly established branch office; and

3. The name and location of the newly established branch office within three weeks at the seats of the existing branch offices.

(2) In the event that the KTP has established a new branch office within the jurisdictional area of the registry office exercising the jurisdiction over the seat of its main office or branch office, the registration as prescribed in section (1) shall be substituted for by the registration of the name and location of such branch office within two weeks. Article 6 (Registration of Moving)

(1) In the event that the KTP has moved its main office to a jurisdictional area of a different registry office, it shall register the intent of such move at the old seat within two weeks, and the matters under subsections of Article (4) at the new seat within three weeks from the date of such moving, respectively.

(2) In the event that the KTP has moved its branch office to a jurisdictional area of a different registry office, it shall register the intent of such move within two weeks at the old seat, and within three weeks the matters under subsections of Article (4) at the new seat from the date of such moving, respectively.

(3) In the event that the KTP has moved its main office or branch office within the jurisdictional area of the same registry office, it shall register the intent of such moving. Article 7 (Registration of Changes)

In the event that there is any change in the matters under the subsections of Article 4, the KTP shall make a registration of change within two weeks at the seat of its main office, and within three weeks at the seats of branch offices, from the date of such change, respectively. Article 8 (Applicant of Registration)

The applicant shall be the chief director of the KTP for the registration of the KTP and its branch offices: Provided that the registration for establishment of the KTP shall be excluded. Article 9 (Documents Attached to Application Form for Registration) (1) The application form for registration of establishment of the KTP as prescribed in Article 5 (2) of the Act shall be attached by the following documents:

1. A certified copy of articles of association; and

2. Documents attesting the selection and appointment of officers. (2) The application form of registration as prescribed in Articles 6 and 7 shall be attached by the documents attesting changes in the registered matters. Article 10 (Computation of Period for Registration) In the event that there is any matter to be authorized or approved by the Minister of Education, Science and Technology (hereinafter referred to as the "Minister") among the matters to be registered as prescribed in the Act and this Decree, the period for registration shall be counted starting from the date the letter of authorization or approval has arrived at the KTP. Article 11 (Competent Registry Office)

(1) The registration as prescribed in the Act and this Decree shall be under the jurisdiction of the registry office of the seat of its main office or branch office. (2) The registry office shall keep the register of the KTP.

Article 12 (Provisions Applied Mutatis Mutandis)

Except as especially prescribed in this Decree, the related provisions of the Non-Contentious Case Litigation Procedure Act shall apply mutatis mutandis to the registration of the KTP. In this case, the term "head office" and "branch" shall be deemed as "main office" and "branch office" respectively. [This Article Wholly amended by Presidential Decree No. 18888, Jun. 30, 2005] Article 13 (Scope of Profit-Making Affairs)

The scope of affairs for the purpose of profit-making as prescribed in Article 16 of the Act shall be as following:

1. Affairs which considerably pursue profit-making by independently administrating the affairs of commerce, manufacturing, finance, and other profit-making affairs;

2. Becoming a director, an auditor, an employee executing affairs with unlimited liability, a manager, a promoter, or other officer of the enterprise applicable to subsection 1;

3. Activities of investment into other persons' enterprises related with duties; and

4. Other affairs for the purpose of continuous profits. Article 14 (Entrustment of Affairs)

In the event that the KTP entrusts its affairs to the postal agency, local governments, financial institutions, or government-invested institutions, etc. as prescribed in the Framework Act on the Management of Government-Invested Institutions, it shall determine the scope of affairs, procedures for disposition, entrustment fee, and other necessary matters with the postal agency, local governments, financial institutions, or government-invested institutions, etc. as prescribed in the Framework Act on the Management of Government- Invested Institutions by agreement.

[This Article Wholly Amended by Presidential Decree No. 10365, Jun. 23, 1981] Articles 15 and 16 CHAPTER III ADDING UP OF PERIODS OF SERVICE

Article 17 Article 17-2 (Period of Service Recognized as Period of Service in Position) The period of service to be recognized as the period of service in a position pursuant to Article 31 (2) of the Act, among the period of service of the persons who were on duty by the defense call-up, the full-time reserve call-up or the reservist call-up, shall be as follows:

1. Period of service on duty by the defense call-up or the full-time reserve call-up;

2. Period of service on duty of supporting activities as prescribed in Article 26 (1) 1 of the Military Service Act and supporting activities for economic, social, and cultural developments of developing countries as prescribed in the International Cooperation Personnel Act, among the period of service as personnel for public interest service by defense call-up.

[This Article Newly Inserted by Presidential Decree No. 17096, Dec. 30, 2000] Article 17-3 (Procedures for Inclusion of Period of Military Service Prior to Appointment)

(1) Any person who intends to be granted with the inclusion of the period for military service prior to his/her appointment pursuant to Article 31-2 of the Act shall submit an application form for inclusion of period for military service (including an application in the form of an electronic document, and the same shall apply hereinafter) to the head of the school institution, and the head of the school institution shall confirm and transfer such application form to the KTP within seven days from the date of receipt thereof.

(2) The KTP in receipt of the application form under section (1) shall decide whether or not to include the period of military service to the applicant and the relevant school institution. [This Article Newly Inserted by Presidential Decree No. 17096, Dec. 30, 2000] Article 18 (Procedures for Adding up of Periods of Service) (1) Any person who intends to be granted the adding up of periods of service pursuant to Article 32 (1) of the Act shall submit the application form for approval of adding up of the periods of service stating the period of service to be added up and the method, etc. of returning the benefits to be returned including its interest (hereinafter referred to as the "money to be returned") to the head of the school institution to which he/she belongs: Provided, that for any retired teacher or staff member who has been appointed again as a teacher or staff member without claiming the retirement benefits, he/she may substitute for the submission of the application form for approval of adding up of the periods of service by stating the intention of application of adding up of the periods of service in the written report of appointment of the teacher and staff (including a written report in electronic document, and the same shall apply hereinafter) submitted to the KTP pursuant to the provisions of Article 89-2 by the head of the school institution. (2) The head of the school institution in receipt of the application form under section (1) shall confirm and transfer such application form to the KTP within seven days from the date of receipt thereof.

(3) The KTP which has been transferred the application form under section (2) shall examine the period to be added up, the money to be returned, and other necessary matters, and decide on whether or not to add up the periods of service and notify such decision to the applicant and the head of the relevant school institution. Article 19 (Method of Payment of Money to Be Returned) (1) The payment of the money to be returned by the person who has been granted the adding up of the periods of service may be paid by the end of the month following the month to which the date of approval of adding up in the case of a lump sum return, or by payment to the head of the school institution at the time of receiving the monthly pay, or to the postal agency, etc. entrusted with the affairs by the KTP pursuant to the provisions of Article 14 by the end of the month, starting from the month following the month on which the date of approval of adding up in the case of return by installment.

(2) Payment by installment of the money to be returned shall be by monthly payments and the number of installments shall be decided by the person to be granted the adding up of the periods of service within the scope of the number as prescribed in the following subsections:

1. 24 installments for the person whose period of service to be added up is less than five years;

2. 48 installments for the person whose period of service to be added up is between five and ten years; and

3. 60 installments for the person whose period of service to be added up is not less than ten years.

(3) (4) In the event that the person who has been granted the adding up of the periods of service is unable to pay the money to be returned due to retirement or death, the KTP may pay the benefits after deducting the unpaid money to be returned.

Article 20 (Computation of Amount of Money to be Returned) (1) In computing the amount of money to be returned, the period for calculation of interest to be additionally collected with the benefits to be returned shall be the number of months starting from the month following the month of decision on the payment of such benefits to the month of which the date the application form for adding up of the periods of service is received by the KTP belongs, and the interest for the next year shall be calculated by adding the interest to the benefits by the year: Provided, that in the case of payment by installment as prescribed in Article 32 (3) of the Act, the period for calculation of interest to be added again shall be the number of months starting from the month following the month of decision on the payment of such benefits to the month the payment by installment ends, and the amount to be paid by each installment shall be the amount derived from equally dividing the principal and interest by the number of installments. (2) The rate of interest under section (1) shall be the highest among the rate of interests for time deposit applied by the banks conducting nationwide business among the financial institutions established by the Banking Act (hereinafter referred to as "nationwide banks) as of Jan. 1 of each relevant year for the period of computing the interest.

(3) Notwithstanding the provisions of section (2), the rate of interest to be applied in the case of payment by installments pursuant to the provisions of Article 32 (3) of the Act shall be the rate of interest as of Jan. 1 of the year of approval for adding up of the periods of service, and in the event that the difference between the rate of interest during the period of installment payments and the rate of interest at the time of approval of adding up of the periods of service is not less than two percent, the money to be returned shall be recomputed by applying the increased or decreased rate of interest. The same shall apply where there is another increase or decrease of not less than two percent compared with the changed rate of interest during the period of installment payments.

(4) The period for calculation of the interest on arrears in the event that the money to be returned has not been paid by the deadline of the payment under Article 19 (1) shall be the period of delinquency (calculated by unit of month), and the relevant rate of interest shall be the rate of interest equivalent to twice the highest rate of interest among the interest rates for one-year time deposit applied by nationwide banks as of Jan. 1 of the relevant year for the period of computing the interest on arrears. [This Article Wholly Amended by Presidential Decree No. 10985, Dec. 31, 1982] CHAPTER IV BENEFITS

SECTION 1 General Provisions

Article 21 (Private School Teachers and Staff Pension Benefit Council) (1) The Private School Teachers and Staff Pension Benefit Council (hereinafter referred to as the "Benefit Council") as prescribed in Article 34 (1) of the Act shall be established in the KTP, and it shall be composed of five to seven members including the chairperson.

(2) The chairperson shall be the managing director of the KTP, and the members shall be commissioned from public officials of grade 5 or higher grade belonging to the Ministry of Education, Science and Technology (including public officials in general service belonging to high-ranking public officials), teachers and staff, and persons who are engaged in medical affairs or legal affairs. (3) The deliberations shall be resolved by attendance of a majority of the registered members (including the cases of connecting via information communication network including internet for insignificant matters which require prompt deliberation) and consenting votes of a majority of the present members.

(4) The following matters shall be subject to the deliberation of the Benefit Council:

1. Whether or not it is corresponding to the disease or injuries in the line of duties as prescribed in Article 29;

2. Whether or not it is corresponding to the incurable disease or death due to the diseases or injuries in the line of duties as prescribed in Article 51 of the mutatis mutandis Act and Article 61 of the same Act;

2-2. Whether or not to pay for the nursing expenses, prosthetic apparatus, or allowance for prosthetic apparatus as prescribed in Article 32-5; 2-3. Whether or not to approve the re-convalescence as prescribed in Article 32-6; 2-4. Whether or not to end the medical treatment as prescribed in Article 32-7;

3. Determination and adjustment of grade of incurable disease as prescribed in Articles 55 and 57;

4. Whether or not to exercise the whole or part of the claim for compensation for damage as prescribed in the proviso of Article 41 (2) of the Act;

5. Whether or not it is corresponding to the status of incurable disease as prescribed in Articles 2 (1) and 50-4; and

6. Whether or not it is corresponding to causes for restricting benefits as prescribed in Article 62 (3) of the mutatis mutandis Act.

(5) The KTP may pay the allowances to the members who attended the Benefit Council. Article 22 (Basis for Computation of Amount of Benefit) (1) (2) The amount of monthly remuneration for the month preceding the month of which the date of increase or decrease as prescribed in Article 35 (2) of the Act shall be the amount of the monthly remuneration concerted to present value of the year that the cause for benefits occurs by mutatis mutandis application of Article 3-3 (1).

(3) In the event that there are more than one period to be added up subject to computation in computing the average amount of the monthly remuneration as prescribed in Article 35 (4) of the Act, such computation shall be by the order of the most recent period of service or period of military service. Article 22-2 (Procedures for Requesting Application of Amount of Previous Monthly Remuneration ) (1) Any teacher or staff member, who intends to pay the individual contributions before the amount of the monthly remuneration is decreased pursuant to the provisions of the proviso of Article 35 (2) of the Act, shall submit the application form (including the application in the form of electronic document, and the same shall apply hereinafter) stating the amount of the monthly remuneration prior to the decrease of the amount of the monthly remuneration and the date that the has decreased, to the head of the school institution to which he/she belongs. (2) The head of the school institution to which the applicant belongs in receipt of the application form under section (1) shall transfer such application to the KTP within seven days from the date of receipt thereof. In this case, in the event that the head of the school institution is the head of the school, he/she shall obtain the consent of the head of the relevant school-operating institution.

[This Article Newly Inserted by Presidential Decree No. 8818, Dec. 31, 1977] Article 22-3 (Payment of Contributions Based on Amount of Monthly Remuneration Prior to Decrease Thereof)

In the event that a teacher or staff member is granted the payment of contributions based on the amount of the monthly remuneration prior to decrease thereof pursuant to the provisions of the proviso of Article 35 (2) of the Act, he/she shall pay for the contributions based on the amount adjusted by the rate of increase of average remuneration of public officials as prescribed in Article 3-3 to the amount of monthly remuneration prior to the decrease thereof.

[This Article Newly Inserted by Presidential Decree No. 17096, Dec. 30, 2000] Article 23 (Method of Payment of Benefits to Representative of Bereaved Family) (1) Where there are more than one person with the same order in receiving the benefits for bereaved families among the bereaved families, in the event that the bereaved family has chosen the representative among the persons with same order or their legal representatives and delegates the right to receive the benefits for all the persons, the KTP may pay the whole amount to such representative on behalf of payments by equal division as prescribed in Article 37 of the Act.

(2) For the delegation under section (1), a letter of choosing representative signed by the delegating persons shall be attached with photocopies of ID cards according to the following classification:

1. Where the delegator is an adult, a photocopy of an ID card such as the resident registration card of the delegator in person; and

2. Where the delegator is a minor, a photocopy of an ID card such as the resident registration card of the legal representative of the delegator. Article 24 (Special Cases of Benefit Payment Where There Are No Bereaved Family) (1) The maximum amount to be paid to the linear descendant or to be used for the dead teacher or staff member, pursuant to the provisions of Article 38 of the Act in the case where there are no bereaved family to receive the benefit, shall be as follows:

1. For the benefit which is a pension: the amount derived by multiplying the following factors to the amount of the principal pension (referring to the amount equivalent to the early retirement pension in the event that the person who is or was a teacher or a staff member has died prior to the age of payment of retirement pension as prescribed in Article 46 (1) 1 or 2 of the mutatis mutandis Act, or the amount equivalent to the early retirement pension computed by assuming that he/she has died without filling the required years by over four years and not more than five years in the event that he/she has died without filling the required years as prescribed in Article 46 (2) of the mutatis mutandis Act by over five years):

[36 - (number of months to receive the pension until the time of death pursuant to the provisions of Article 43 (1) of the mutatis mutandis Act)] x 1/36;

2. For the short-tem benefit: the entire amount of the principal benefit;

3. ; and

4. For other long-term benefits: the entire amount of the principal benefit, provided that for the lump sum payment of bereaved family's pension, lump sum payment for bereaved family, and bereaved family compensation, it shall be one half of the amount of the principal benefit.

(2) (3). In the event that there are no linear descendants who are not the bereaved family, the KTP may pay the benefit to the head of the school institution to which the person who is or used to be a teacher or staff member belongs, and have the benefit money spent for the tomb, ritual dishes or utensils, a cenotaph, etc. for the dead person who was a teacher or staff member, or spend it for the commemorative project or for the coverage of the medical treatment expenses which accrued before he/she died. Article 24-2 (Payment of Benefits)

(1) The benefits shall be paid by using the bank accounts of the person entitled to receive the benefits opened in financial institutions entrusted with the affairs of paying the benefits by the KTP pursuant to the provisions of Article 20 of the Act and Article 14 of this Decree. (2) The benefit credited to the bank account of the person entitled to receive the benefit pursuant to the provisions of section (1) shall be deemed to be received by the person himself/herself.

[This Article Newly Inserted by Presidential Decree No. 17909, Feb. 24, 2003] Article 25 (Collection of Benefit)

The amount of the benefits to be collected pursuant to the provisions of Article 39 of the Act, the rate of interest to be added to the amount of the benefits to be returned, and expenses for the collection of the benefits shall be in accordance with the following subsections. In this case, the period for calculating the interest to be added to the amount of the benefits to be returned shall be the period starting from the date following the date of receiving the benefits to the date that the amount of benefits to be returned and interest (hereinafter referred to as "recovery money") are determined and notified. The interest for the following year shall be successively computed yearly by adding the interest to the amount of the benefits, and the period for calculating interest on arrears in the case where the recovery money has not been paid by the deadline of the payment shall be the period starting from the day following the date of the deadline of the payment to the date the recovery money has been paid:

1. Amount of the benefits: the amount paid pursuant to the Act and this Decree;

2. Rate of interest: the highest among the rates of interest for time deposits applied by nationwide banks as of Jan. 1 of each relevant year: Provided, that the rate of interest on arrears shall be the highest among the interest rates on arrears of loan applies by nationwide banks as of Jan. 1 of each relevant year for the period of calculating interest on arrears; and

3. Expenses for the collection of the money to be returned: the amount computed by the KTP, which are the expenses required for investigation trips, etc. to collect the benefits. (2) In the event that the person who received the benefits or the head of the school institution to which he/she belongs finds any of the facts applicable to the subsections of Article 39 of the Act, he/she shall report or notify thereof to the KTP without delay. (3) In the event that the KTP has found any cause for collection of the benefits by means such as report, notice, and other means under section (2), he/she shall immediately investigate thereon, and forward the notice to return the recovery money to the person who received the benefits, and inform such fact to the head of the school institution to which the relevant person belongs. (4) The person who has received the notice to return the recovery money shall pay the recovery money within 30 days from the date he/she has received such notice: Provided, that in the cases of Article 39 (2) and (3), he/she may make payment by installments each month within the scope of the following subsections starting from the day the period of payment ends, by submitting the application form for installments of the recovery money to the KTP and obtaining approval thereof not later than the deadline of the payment:

1. Where the money to be returned is less than 20 million won: eight times;

2. Where the money to be returned is not less than 20 million won and not more than 40 million won: sixteen times;

3. Where the money to be returned is not less than 40 million won and not more than 80 million won: 32 times; and

4. Where the money to be returned is not less than 80 million won: 48 times. (5) In the case of installment payments as prescribed in the proviso of section (4), the interest shall be computed by applying the rate of interest under section (1) to the recovery money to be paid for the period of installment payments. In this case, the amount to be paid by installments for one time shall be the amount derived by equally dividing the sum of the principal and the interest by the number of installments.

(6) In the event that a person who is granted the installment payments for the recovery money pursuant to the provisions of section (4) has been delinquent for the payments by installment for not less than three months, the KTP may revoke the approval for the payments by installments and collect the recovery money and the interest on arrears all at once. Article 26 (Securities for Right to Receive Benefits) The financial institutions which can hold securities for rights to receive the benefits pursuant to the provisions of subsection 1 of Article 40 of the Act shall be limited to the financial institutions prescribed in Article 87-2 (1).

Article 27 (Claim for Amount of Deduction of Benefits under Other Laws and Regulations)

(1) In the event that the school-operating institution intends to be paid for the amount of money deducted by the KTP pursuant to the provisions of Article 41 (1) of the Act, the relevant school-operating institution shall apply to the KTP by stating the cause for the payment of the benefits, personal information of the teacher or staff member who received the benefits, and the amount of the payment.

(2) When the KTP has received the application under section (1), it shall confirm the relevant facts, and pay the deducted amount to the school-operating institution without delay. Article 28 (Conciliation with Compensation for Damages by Third Person) (1) In the event that a teacher or staff member has been subjected to a disease, injury, incurable disease, or has died due to the harmful activity of a third person, the person who is entitled to receive the convalescence expenses in the line of duties, lump sum money for convalescence in the line of duties, disability pension, compensation for the disability, and compensation for the bereaved family, and the convalescence treating institution in charge of convalescence of the relevant person shall, without delay, report such facts to the head of the school institution to which he/she belongs.

(2) The head of the school institution in receipt of the report under section (1) shall, without delay, investigate the details of the harmful activity and the matters concerning the compensation for damages as prescribed in the Act on Guarantee of Compensation for Loss Caused by Automobile and other laws and regulations, and shall immediately transfer the written investigation report to the KTP. 30. 2005> SECTION 2 Short-Term Benefits

SUBSECTION 1 Convalescence Expenses in Line of Duties and Lump Sum of Convalescence

Article 29 (Convalescence Expenses in Line of Duties) In the event that a teacher or staff member is under convalescence due to the injury or disease applicable to one of the following subsections, the convalescence expenses in the line of duties shall be paid:

1. An injury which has newly occurred due to the accident while performing duties, or disease caused by such accident;

2. A disease due to handling of radium rays, ultraviolet rays, X-rays, and other harmful rays while performing duties;

3. Burns or frostbites while performing duties;

4. Pneumoconiosis caused by intense dusts at the place of performing duties, and tuberculosis ensuing thereon;

5. A disease due to strong noise in the place of performing duties;

6. Poisoning due to toxic gas or toxic substance while performing duties, and complication and aftereffects ensuing therefrom;

7. A disease caused by performing special duties which may be harmful to health, other than the diseases applicable to subsections 1 through 6; and

8. A disease considerably worsened, or disease or injury newly occurring due to the concurrence of the usual disease, cause for illness, or worsened health condition with the performing of duties applicable to the following subsections: (a) Continuous performing of duties in the environment in which there is considerable possibility that a disease may occur or worsen;

(b) Performing special duties which are not regular duties under his/her charge; and (c) Performing continuous night duties or other similar duties which may easily cause overwork.

(2) The detailed standards for the injuries or diseases in the line of duties as prescribed in section (1) shall be determined by the KTP.

Article 29-2 (Counseling for Convalescence)

Where a teacher or staff member is under convalescence as prescribed in Article 35 of the mutatis mutandis Act, the KTP may commission a medical specialist as a counselor for counseling necessary matters such as examination of the convalescence expenses in the line of duties, extension of the period of convalescence in the line of duties, convalescence in the line of duties for additional diseases and injuries, etc. [Newly Inserted by Presidential Decree No. 17096, Dec. 30, 2000] Article 30 (Approval of Convalescence in Line of Duties) (1) When a teacher or staff member intends to have convalescence at the convalescence institution, for which convalescence expenses are paid as prescribed in Article 29, he/she or a person who is delegated by him/her shall, without delay, submit a written application for approval of convalescence in the line of duties attached with a medical certificate stating the treatment period (limited to one issued by the convalescence treating institution, and the same shall apply hereinafter) to the head of the school institution to which the teacher or staff member belongs. In this case, where the approval thereof cannot be obtained in advance due to disease or injury requiring urgent treatment, he/she shall apply for the approval thereof immediately after commencing the convalescence.

(2) The head of the school institution in receipt of the application under section (1) shall investigate the details of the disease or injury, and transfer the application attached with the following documents to the KTP within seven days from the date of receipt of such application:

1. A photocopy of health card; and

2. Investigation report on the details of the disease or injury. (3) The KTP which has been transferred the application under section (2) shall determine whether or not to approve the convalescence in the line of duties and the period of convalescence, and forward the written details of determination to the applicant, the head of the convalescent institution, the head of the school institution, and the National Health Insurance KTP which is entrusted with the affairs of benefits for convalescence in the line of duties pursuant to the provisions of Article 30-2. Article 30-2 (Entrustment of Affairs)

The KTP may entrust the affairs applicable to the following subsections to the National Health Insurance KTP pursuant to the provisions of Article 38 (4) of the mutatis mutandis Act:

1. Examination of the convalescence expenses in the line of duties and affairs of payment;

2. Settlement affairs of the convalescence expenses in the line of duties; and

3. Other affairs related to the affairs as prescribed in subsections 1 and 2. [This Article Newly Inserted by Presidential Decree No. 17096, Dec. 30, 2000] [[Enforcement Date: Jan. 1, 2002]]

Article 31 (Extension of Convalescence Period in Line of Duties) (1) Where a person intends to have convalescence for a period exceeding the convalescence period as prescribed in Article 30 (3), he/she shall submit a written application for approval of extension of the convalescence period in the line of duties, attached with a medical certificate, to the head of the school institution to which he/she belongs.

(2) (3) The head of the school institution in receipt of the application under section (1) shall confirm and transfer it to the KTP within seven days, and the KTP in receipt of such application shall deal with it by mutatis mutandis application of the provisions of Article 30 (3).

Article 32 (Procedures for Payment of Convalescence Expenses in Line of Duties ) (1) In the event that the convalescent institution has implemented convalescence in the line of duties as prescribed in Article 35 (1) of the mutatis mutandis Act, it shall claim the National Health Insurance KTP for the payment by an invoice for medical treatment attached with a written details thereof

(2) In the event that the National Health Insurance KTP has implemented the payment of the benefits for convalescence in the line of duties and claims for the payment of the expenses for the convalescence in the line of duties to the KTP, it shall submit an invoice for the convalescence expenses in line of duties attached with a photocopy of the written details of medical treatment expenses.

(3) In the event that there exists a claim for payment of convalescence expenses from the National Health Insurance KTP pursuant to the provisions of section (2), the KTP shall examine it and make a payment within one month, and notify such fact to the relevant teacher or staff member and the head of the school institution to which the teacher or staff member belongs.

(4) A person who intends to be paid for the lump sum for convalescence in the line of duties as prescribed in Article 36 of the mutatis mutandis Act shall claim the KTP for such payment via written claim for lump sum for convalescence in the line of duties attached with the following documents.

1. A written opinion of the doctor in charge concerning the estimated period of convalescence after the expiration of two years of actual convalescence period as prescribed in Article 35 of the mutatis mutandis Act and contents of the convalescence; and

2. Written details of the required medical treatment expenses during the estimated period of convalescence.

(5) The amount of the lump sum for convalescence in the line of duties to be paid by the claim as prescribed in section (4) shall be the total amount of the required medical treatment expenses during the estimated period of convalescence.

(6) [This Article Wholly Amended by Presidential Decree No. 9318, Feb. 10, 1979] Article 32-2 (Computation of Convalescence Expenses) The term "convalescence expenses prescribed by Presidential Decree" in subsection 3 of Article 39 of the mutatis mutandis Act refers to the following convalescence expenses:

1. Where normal cure is difficult by the convalescence as prescribed in subsections (1) and (2) of Article 39 of the mutatis mutandis Act or normal social lives are not feasible after cure, and thus additional convalescence is necessary: the expenses required for medicine, medical treatment, disposition (including plastic surgery), apparatus, etc. needed therefor, determined by the KTP;

2. Convalescence expenses determined by the KTP among the expenses exceeding that prescribed for payment for convalescence as prescribed in sections 1 and 2 of the mutatis mutandis Act.

[This Article Newly Inserted by Presidential Decree No. 17096, Dec. 30, 2000] Article 32-3 (Standards, etc. for Payment of Nursing Expenses) (1)The persons to receive the benefits for nursing expenses and the standards for payment therefor referred to in Article 59 (1) of the Enforcement Decree of the Industrial Accident Compensation Insurance Act shall apply mutatis mutandis to the persons to receive the nursing expenses and the standards therefor as prescribed in Article 33-2 of the Act. (2) Nursing expenses shall be paid monthly for the days the nursing is actually conducted. (3) In the event that the person who is to receive the nursing expenses has medical retreatment pursuant to the provisions of Article 33-3 of the Act, the nursing expenses for the period starting from the date the medical retreatment has started to the date the re- convalescence ends shall not be paid.

[This Article Newly Inserted by Presidential Decree No. 18888, Jun. 30, 2005] Article 32-4 (Standards for Payment for Prosthetic Apparatus or Allowance for Prosthetic Apparatus)

The matters concerning rehabilitation assisting apparatus and artificial teeth, prescribed by the standards for computation of the convalescence benefits as prescribed in Article 40 (5) of the Industrial Accident Compensation Insurance Act shall apply mutatis mutandis to the persons to receive the prosthetic apparatus and the standards therefor as prescribed in Article 33-2 of the Act.

[This Article Newly Inserted by Presidential Decree No. 18888, Jun. 30, 2005] Article 32-5 (Convalescence Expenses in Line of Duties Which Can Be Paid Directly to Person in Question)

(1) The term "convalescence expenses due to official duties prescribed by Presidential Decree" in Article 38 (3) of the mutatis mutandis Act refers to the convalescence expenses in the line of duties applicable to any of the following subsections:

1. Nursing expenses as prescribed in Article 32-3; and

2. Prosthetic apparatus or allowances for prosthetic apparatus as prescribed in Article 32-4. (2) A person who intends to be paid for the convalescence expenses in the line of duties as prescribed in section (1) shall claim the KTP for the payment thereof by a written claim for convalescence expenses in the line of duties attached with a medical certificate of disability for the private school teacher and staff pension issued by the convalescent institution and the receipt for nursing expenses or prosthetic apparatus.

[This Article Newly Inserted by Presidential Decree No. 18888, Jun. 30, 2005] Article 32-6 (Requirements and Procedures for Re-convalescence) (1) In the event that a person who received the convalescence expenses in the line of duties as prescribed in Article 29 applies to any of the following subsections, he/she may file an application for the re-convalescence as prescribed in Article 33-3 of the Act to the KTP:

1. Where a disease or an injury has occurred, for which there is a medical opinion that such disease or injury has significant causal relationship with the injury or disease in the line of duties which was subject to the convalescence, and the effect of medical treatment is deemed to exist if re-convalescence is conducted;

2. Where it is necessary to remove the inner fixing materials such as metal pins inserted by inner fixing treatment; and

3. Where it is deemed that re-surgery is necessary for the amputated area to fit artificial limbs.

(2) In the event that the KTP in receipt of the application for the re-convalescence pursuant to the provisions of section (1) has difficulty in determining whether or not to approve the re-convalescence, it may have the applicant for the re-convalescence take medical examination at the medical institution designated by the KTP, and determine whether or not to approve the re-convalescence in accordance with the results thereof. (3) The provisions of Article 30 shall apply mutatis mutandis to the procedures for application and notification of the written details of determination for the re-convalescence: Provided, that where the cause for re-convalescence has occurred to a person who was a teacher or staff member who retired from office, the applicant for re-convalescence shall submit the written application for approval of re-convalescence to the KTP in person. [This Article Newly Inserted by Presidential Decree No. 18888, Jun. 30, 2005] Article 32-7 (Termination of Medical Treatment)

(1) If the KTP judges that the effect of medical treatment is not expected even if the medical treatment is continuously conducted for the injury or disease of a person under convalescence (including re-convalescence, and the same shall apply hereinafter) due to the injury or disease in the line of duties, and the symptom is deemed to have reached a steady state, it shall terminate the medical treatment as prescribed in the provisions of the Act or this Decree through the deliberation of the Benefit Council. (2) In the event that the KTP terminates the medical treatment pursuant to the provisions of section (1), it shall notify the relevant person under convalescence or his/her family in advance.

[This Article Newly Inserted by Presidential Decree No. 18888, Jun. 30, 2005] Article 33 Article 34 SUBSECTON 2. Articles 35 through 37 SUBSECTION 3. Convalescent Institution and Standards for Assessment of Medical Expenses

Article 38 Article 39 (Convalescence at Medical Institution Other Than Convalescent Institution) (1) A person under convalescence or a person delegated by him/her as prescribed in Article 40 (1) of the mutatis mutandis Act shall file an application for approval of convalescence in the line of duties as prescribed in Article 30 attached with a written statement for reasons not being able to receive convalescence at the convalescent institution, immediately after commencing such convalescence.

(2) When a person who has completed convalescence at the medical institution, other than the convalescent institution, intends to be paid for the convalescence expenses, he/she shall file claim to the National Health Insurance KTP for the relevant payment according to the procedures prescribed by the National Health Insurance Act.

[This Article Wholly Amended by Presidential Decree No. 10985, Dec. 31, 1982] Article 40 (Change of Convalescence Treating Institution) In the event that a person under convalescence changes the convalescence treating institution, he/she shall submit a photocopy of the statement of determination of approval of convalescence in the line of duties as prescribed in Article 30 (3) to the new convalescence treating institution.

[This Article Newly Inserted by Presidential Decree No. 9753, Feb. 4, 1980] Article 41 Article 42 SUBSECTION 4 Health Examinations

Article 43 Article 44 (Health Examination)

When the National Health Insurance KTP intends to implement the health examination of the insured who are teachers and staff pursuant to the provisions of Article 47, it shall consult in advance with the KTP on the contents, etc. of such implementation for the efficient operation of the affairs of the pension for the private school teachers and staff.

[This Article Wholly Amended by Presidential Decree No. 9318, Feb. 10, 1979] SUBSECTION 5 Benefits for Disasters

Article 45 Article 46 Article 47 (Disaster Relief Money)

(1) The scope of disasters for which the disaster relief money can be paid as prescribed in the mutatis mutandis Act shall be damages to the house (including shares of community of dwelling houses, and the same shall apply hereinafter) owned by a teacher or faculty member, or his/her spouse, or a house where a teacher or staff member ordinarily resides, which is owned by him/her or his/her spouse's linear ascendant or descendant, due to fire, flood, heavy rain, heavy snow, storm, tsunami, or other similar natural or artificial phenomena. (2) The amount of disaster relief money by the level of damage shall be as follows:

1. Where the house building is totally destroyed by fire, washed away by flood, or destructed, the relevant disaster relief money shall be six times the amount of the monthly remuneration;

2. Where at least one half of the house building is destroyed by fire, washed away by flood, or destructed, the relevant disaster relief money shall be four times the amount of the monthly remuneration; and

3. Where at least a third of the house building is destroyed by fire, washed away by flood, or destructed, the relevant disaster relief money shall be two times the amount of monthly remuneration.

(3) Any person who intends to be paid for the disaster relief money shall submit a written request for disaster relief money (including a written request in electronic document) attached with the a letter of confirmation of damage condition (including electronic document) issued by the head of the city/Gun/Gu (referring to the autonomous Gu, and the same shall apply hereinafter) or the fire marshal to the KTP, after obtaining the confirmation of the school institution to which he/she belongs. In this case, the staff member in charge shall confirm the administrative information of the matters applicable to the following subsections via communal use of administrative information under Article 22-2 (1) of the Electronic Government Act, and if the applicant does not consent to the confirmation, he/she shall attach the relevant documents:

1. ;

2. A certified copy of family residential registration papers; and

3. A certified copy of register of building. Article 47-2 (Persons Subject to Death Condolence Money and Procedures for Request) (1) The term "linear ascendants of his/her spouse prescribed by Presidential Decree" in the first part of Article 41-2 (1) of the mutatis mutandis Act refers to his/her spouse's linear ascendants where a teacher or staff member supports his/her spouse's linear ascendants. (2) A teacher or staff member prescribed by Presidential Decree as prescribed in the latter part of Article 41-2 (1) of the mutatis mutandis Act shall be the person with priority order among the teachers or staff members by the order of the following subsections:

1. A teacher or staff member who is a spouse of a deceased person;

2. The oldest person among the teachers and staff who are the closest linear descendants of deceased persons; and

3. A teacher or staff member whose spouse is the oldest among the teachers and staff who are the spouses of the closest linear descendants of deceased persons. (3) Where there is no spouse for a teacher or staff member who is deceased, the death condolence money shall be paid to the person with priority order by the order of the following subsections among the persons who conduct the funeral service, pursuant to the provisions of Article 41-2 (2) of the mutatis mutandis Act: Provided, that the same shall not apply in the case where there is a teacher or staff member among the linear descendants of the teacher or staff member who is deceased.

(4) A person who intends to receive the death condolence money pursuant to the provisions of Article 41-2 of the mutatis mutandis Act shall submit a written request for the payment of death condolence money (including a written request in electronic document) attached with the following documents (including electronic documents) to the KTP after obtaining confirmation of the head of the school institution. In this case, the staff member in charge shall confirm the certified copy of family residential registration paper (limited to the supporting teacher or staff member) via communal use of administrative information under Article 22-2 (1) of the Electronic Government Act, and if the applicant does not consent to the confirmation, he/she shall have it attached thereto.

1. Documents attesting the death;

2. Certificates concerning the recorded matters for family relation; and

3. [This Article Newly Inserted by Presidential Decree No. 11583, Dec. 31, 1984] SECTION 3 Long-Term Benefits

SEBSECTION 1 General Provisions

Article 48 (Delivery of Pension Certificate)

(1) The KTP shall deliver a pension certificate to the person who receives the benefits in the form of a pension (hereinafter referred to as a "recipient of pension").

(2) (3) In the event that the recipient of a pension has lost or spoilt the pension certificate under section (1), he/she may have it redelivered. In the event the pension certificate is spoilt, he/she shall return it by attaching to the application form for redelivery thereto.

Article 49 (Report on Alteration of Address and Name of Recipient of Pension ) A recipient of a pension shall submit a written report on alteration of address (including a written report in electronic document) attached with an abstract of family residential registration papers where he/she has changed his/her address, or a written report on alteration of name (including a written report in electronic document) attached with certificates concerning the recorded matters for family relations and the pension certificate in the case that he/she has changed his/her name, to the KTP: Provided, that where the information on the attached documents can be confirmed via communal use of administrative information under Article 22-2 (1) of the Electronic Government Act, such confirmation may substitute the documents to be attached thereto. Article 50 (Payment Date for Pension and Settlement Payment of Pension) (1) The payment date of the pension benefits as prescribed in Article 43 (4) of the mutatis mutandis Act shall be the 25th

day of each month: Provided, that in the event that the payment date is on a Saturday or holiday, it shall be paid on the previous day, and where the right to receive a pension is extinguished, it may be paid before the payment date. (2) Where a recipient of pension emigrating to a foreign country intends to receive the pension benefits at one time, he/she shall submit a written request for the settlement of pension attached with the following documents to the KTP:

1. Pension certificate; and

2. Certificate of departure from the country, certificate of planned departure from the country, or other documents which can prove the relevant emigration. (3) A recipient of a pension who lost his/her nationality intends to receive the lump sum pension benefits by settlement pursuant to the provisions of Article 44 (2) of the mutatis mutandis Act, he/she shall submit a written request for the settlement of pension attached with the following documents to the KTP:

1. Pension certificate; and

2. Basic certificates or documents attesting losing of nationality among the certified copy of removal from resident registration and certificates concerning the recorded matters for family relations.

Article 50-2 Article 50-3 (Confirmation of Retirement Due to Alteration and Abolition, etc. of Office Organization and Quota of Regular Staff)

(1) The head of a school institution shall, where a teacher or staff member under his/her authority has retired from office due to the abolished post or excess staff resulting from the alteration or abolition of the office organization and the quota of regular staff, or decrease in budget, etc. pursuant to the provisions of Article 46 (1) 4 of the mutatis mutandis Act, submit the data which can verify the reasons, quota of regular staff, number of current staff, etc. to the KTP,.

(2) The KTP shall confirm whether or not the retirement of the teacher or staff member submitted pursuant to the provisions of section (1) is applicable to the retirement as prescribed in Article 46 (1) 4 of the mutatis mutandis Act, and forward the letter of confirmation to the head of the school institution. [This Article Newly Inserted by Presidential Decree No. 17096, Dec. 30, 2000] Article 50-4 (Status of Incurable Diseases to Receive Retirement Pension) The status of incurable diseases under Articles 46 (1) 5 and 46-2 of the mutatis mutandis Act shall be deemed to correspond to grades of incurable disease 1 through 7 as prescribed in Article 55.

[This Article Newly Inserted by Presidential Decree No. 17096, Dec. 30, 2000] Article 50-5 (Special Cases in Computation of Pension Due to Adding up of Period of Service)

In computing the retirement pension or early retirement pension as prescribed in Article 46 (7) of the mutatis mutandis Act, the provisions of Article 3-3 shall apply mutatis mutandis to the conversion of the amount of the previous monthly remuneration or average amount of the monthly remuneration at the time of retirement from office or retirement from service to present value.

[This Article Newly Inserted by Presidential Decree No. 17096, Dec. 30, 2000] Article 51 (Suspension of Payment of Retirement Pension, Early Retirement Pension, or Disability Pension)

(1) In the event that a person who receives a retirement pension, early retirement pension, or disability pension (hereinafter referred to as a "recipient of retirement pension, etc." in this Article) has been appointed as a teacher or staff member, public official, or serviceperson, or has retired, he/she shall submit a written report for reappointment or re-retirement to the KTP within ten days after obtaining confirmation from the head of the institution dealing with the relevant pension or the head of the institution to which he/she belongs. (2) The monthly income amount as prescribed in Article 47 (2) of the mutatis mutandis Act shall be the amount derived from dividing the total income for the year from Jan. 1 to Dec. 31 by the number of months for which he/she has been engaged in the business which has generated income.

(3) In the event that the monthly income amount of the relevant year exceeds the monthly average wage amount of the previous year, the payment of retirement pension, early retirement pension, or disability pension (hereinafter referred to as the "retirement pension, etc." in this Article) shall be partially suspended pursuant to the provisions of Article 47 (2) of the mutatis mutandis Act; and for the period prior to the publication of the monthly average wage amount for the previous year, the suspended amount of pension payment shall be computed by applying the monthly average wage amount of the year before the previous year, and the suspended amount of pension payment for the relevant year shall be recomputed after the monthly average wage amount for the previous year is published, and the difference shall be adjusted to the payment of the retirement pension, etc. for the following month.

(4) The KTP shall suspend the retirement pension, etc. of the relevant year based on the data received from the State agencies, etc. according to the provisions of Article 19 (4) of the Act: Provided, that in the event that the income amount of the persons receiving the retirement pension, etc. cannot be identified by the data received from the State agencies, etc., it shall suspend payment of the retirement, etc. based on the income amount of the previous year or the year before the previous year. (5) In the event that the payment of the retirement pension, etc. has been suspended, the suspended amount of pension payment for the relevant year shall be recomputed after the final return on the tax base of global income is filed pursuant to the provisions of Article 70 of the Income Tax Act, and the difference shall be adjusted; and where the persons receiving retirement pensions, etc. have requested the adjustment of the suspended amount of pension payment by a written request for adjustment of the suspended amount of pension payment attached with objective data attesting the income of the relevant year, the KTP may adjust the suspended amount of pension payment before the final return on the tax base of global income is filed.

[This Article Wholly Amended by Presidential Decree No. 18888, Jun. 30, 2005] Article 52 (Investigation on Personal Affairs of Persons Receiving Pension )

(1) The KTP may request, at least once a year, the head of the city/gun/Gu of the place of residence and resident registration base of a person receiving pension and the heads of the agencies prescribed by Ordinance of the Ministry of Public Administration and Securities pursuant to the provisions of subsections 2 through 5 of Article 47 of the mutatis mutandis Act (referring to the Act prior to the amendment pursuant to Act No. 6328) for the investigation of the personal matters to examine the changes in status which affect the pension benefits, and if necessary, it may ask the person receiving pension or his/her family to submit the related data.

(2) The heads of agencies who have received such request for investigation under section (1) shall, without delay, investigate thereon and notify the KTP.

Article 52-2 (Confirmation of Whether or Not Being Recipient of Public Officials Pension and Veterans' Pension ) (1) The corporation may request the Government Employees Pension Service or the Minister of National Defense for the confirmation of whether or not a person entitled to receive the bereaved family's pension is the person entitled to receive the retirement pension, early retirement pension, or veteran's pension.

(2) The Government Employees Pension Service or the Minister of National Defense shall, where the corporation has requested for confirmation, confirm whether or not he/she has the right to receive the retirement pension, early retirement pension, or veteran's pension, and notify the result thereof to the KTP.

[This Article Newly Inserted by Presidential Decree No. 14906, Feb. 2, 1996] SUBSECTION 2 Retirement Benefits

Article 53 (Claim for Retirement Benefits)

(1) A person who intends to receive a retirement pension, early retirement pension, lump sum for retirement pension, lump sum for retirement pension deduction, or lump sum for retirement shall submit a written claim for retirement benefits (including a written request in electronic document, and the same shall apply hereinafter) to the head of the school institution to which he/she belongs. (2) The head of the school institution in receipt of the written request under section (1) shall investigate and confirm the reasons for restricting benefits, amount of monthly remuneration, individual contributions, and other necessary matters, and transfer such written request to the KTP.

(3) In the event that a person has retired from office due to reasons such as the alteration and abolition of the office organization, etc. and claims for the retirement pension pursuant to the provisions of Article 46 (1) 4 of the mutatis mutandis Act, he/she shall attach a letter of confirmation of the KTP as prescribed in Article 50-3 (2) to the written request for retirement benefits. (4) Where a person applies to the status of incurable disease as prescribed in Article 46 (1) 5 of the mutatis mutandis Act and Article 50-4 of this Decree and claims for the retirement pension, he/she shall attach a medical certificate of disability for private school teachers and staff pension, which can prove the status of incurable disease, to the written claim for retirement benefits under section (1).

Article 53-2 (Retirement Age or Ceiling Age for Service) The retirement age or ceiling age for service as prescribed in Article 42 (2) of the Act shall be as follows:

1. The retirement age applied to public educational officials pursuant to the provisions of Article 47 of the Public Educational Officials Act for teachers;

2. The retirement age for public officials in general service who receive remunerations which are the basis for computing standard amount of monthly remuneration of the relevant administrative staff pursuant to the provisions of Article 3 (1) 2 for the staff in general service and technological service among the administrative staff;

3. The retirement age for technical public officials who receive remunerations which are the basis for computing standard amount of monthly remuneration of the relevant administrative staff pursuant to the provisions of Article 3 (1) 3 for the technical staff among the administrative staff; and

4. The retirement age for public officials in labor service who receive remunerations which are the basis for computing standard amount of monthly remuneration of the relevant administrative staff pursuant to the provisions of Article 3 (1) 4 for the staff in labor service among the administrative staff.

[This Article Newly Inserted by Presidential Decree No. 14906, Feb. 2, 1996] Article 53-3 (Application for Changes, etc. of Retirement Benefits) Where a person who applied for a retirement pension, early retirement pension, or lump sum of retirement pension deduction (limited to the portion of pension excluding lump sum money, and this shall apply hereinafter in this Article) intends to change the retirement pension to early retirement pension, or early retirement pension to retirement pension before he/she reaches the age of commencing the payment of the pension or early retirement pension as prescribed in Article 46 (1) 1 and 2, and (2) of the mutatis mutandis Act and Article 8 of Addenda of the Act No. 6330, or change the payment period of the early retirement pension as prescribed in Article 46 (2) of the mutatis mutandis Act before he/she reaches the age of commencing the payment of the early retirement pension, he/she shall submit a written application for change of retirement benefits to the KTP by the month prior to the month the payment of pension benefits commences. [This Article Newly Inserted by Presidential Decree No. 17096, Dec. 30, 2000] Article 54 (Special Cases in Computing Retirement Benefits and Bereaved Family Benefits)

Where a retired teacher or staff member, public official, or serviceperson who was appointed as a teacher or staff member, and granted the adding up of the periods of service pursuant to the provisions of Article 32 (1) of the Act has retired or died, and where he/she desires to receive the lump sum of retirement pension, lump sum for retirement, lump sum for bereaved family pension, or lump sum for bereaved family, if the amount of benefit is less than the sum of the amount of returned money as prescribed in Article 32 (2) of the Act and its interest (referring to the interest computed at an annual compound interest by applying the highest interest rate among the interest rates for time deposits applied by nationwide banks as of Jan. 1 of each relevant year after paying the money to be returned), and the lump sum of retirement pension, lump sum for retirement, lump sum for bereaved family pension, or lump sum for bereaved family corresponding to the period of service as a teacher or staff member, the amount of such sum shall be paid. [This Article Wholly Amended by 13554, Dec. 31, 1991] Article 54-2 (Payment of Retirement Benefits to Missing Persons )

(1) Verification of the fact that a person who is entitled to receive the retirement benefits is missing for not less than one year as prescribed in Article 49 of the mutatis mutandis Act shall be according to that confirmed by the heads of the city/Gun/Gu or the head of the school institution.

(2) The term "interest prescribed by Presidential Decree" in the proviso of Article 49 (3) and the latter part of Article 49 (4) of the mutatis mutandis Act refers to the interest applying the highest interest rate among the interest rates for time deposits applied by nationwide banks as of Jan. 1 of each relevant year.

(3) A person who intends to receive payment of the amount equivalent to the difference of the amount of the benefits pursuant to the provisions of Article 49 (4) of the mutatis mutandis Act shall submit the invoice to the KTP.

[This Article Newly Inserted by 10985, Dec. 31, 1982] Articles 54-3 and 54-4 SUBSECTION 3 Disability Benefits

Article 55 (Classification of Extent of Status of Incurable Disease) (1) The classification of the extent of the status of incurable disease (hereinafter referred to as "grades of incurable diseases") for disability benefits as prescribed in Article 51 of the mutatis mutandis Act shall be as stated in the attached Table-1-2, and where there exists an incurable disease which is not classified in grades of incurable diseases, the grade of such incurable disease shall be determined in accordance with the status of incurable disease prescribed in the grades of incurable diseases according to the extent of such incurable disease: Provided, that where are not less than two areas of incurable diseases corresponding to grade 2 through grade 10, the grade of incurable disease for each area as classified in the attached Table 1-2 for the most serious two areas shall be determined, and the comprehensive grade of incurable diseases shall be determined as prescribed in the attached Table 2 based on such two grades of incurable disease for each area. (2) The detailed standards for judgment for the classification of the grades of incurable diseases under section (1) shall be determined by the KTP.

[This Article Wholly Amended by Presidential Decree No. 10985, Dec. 31, 1982] Article 56 (Claim for Disability Benefits)

(1) A person who intends to receive a disability pension or disability compensation shall, at the time of claiming the retirement benefits as prescribed in Article 53, submit a written claim for disability benefits attached with a medical certificate of disability for private school teachers and staff pension to the head of the school institution to which he/she belongs: Provided, that he/she may separately claim the disability benefits in the event that the cause for disability benefits has occurred after the claim for retirement benefits was filed.

(2) The head of the school institution in receipt of the written claim under section (1) shall immediately investigate and confirm the details of the incurable disease, and transfer such said written claim attached with the following documents to the KTP:

1. ;

2. A photocopy of health card; and

3. Investigation report on the details of the incurable disease. Article 57 (Adjustment, etc. of Grades of Incurable Diseases )

(1) In the event that the extent of the incurable disease of the recipient of disability pension has improved or worsened, the recipient shall submit a written application for adjustment of grade of incurable disease attached with the following documents to the KTP, pursuant to the provisions of Article 53 (1) of the mutatis mutandis Act.

1. A medical certificate of disability for private school teachers and staff pension issued by a convalescent institution; and

2. Certificate for disability pension. (2) The KTP may have the recipient of a pension take a medical examination at the convalescent institution designated by the KTP to confirm whether the extent of the incurable disease has improved or worsened, and whether or not it is corresponding to the extent of the status of incurable disease, pursuant to the provisions of Article 2 (2) and (3) of the Act, Article 46-2 of the mutatis mutandis Act, and Article 53 (1) and (3) of the same Act. (3) In the event that the KTP has the recipient take a medical examination pursuant to the provisions of section (2), it shall bear the expenses required for such medical examination. SUBSECTION 4 Bereaved Family Pension

Article 58 (Claim for Bereaved Family Benefits)

(1) A person who intends to receive a bereaved family pension, additional money for a bereaved family pension, special additional money for a bereaved family pension, lump sum for a bereaved family pension, or lump sum for bereaved family shall submit a written claim for the bereaved family benefits attached with the following documents to the head of the school institution to which the person who used to be a teacher or family staff belongs: Provided, that where the bereaved family benefits are claimed for as a recipient of the retirement pension, early retirement pension, or disability pension deceases, the claim documents attached with the pension certificate shall be submitted to the KTP.

1. Documents attesting the bereaved family pursuant to the provisions of Article 2;

2. Documents attesting their representative where a representative of the bereaved family members with the same order claims such benefits, pursuant to the provisions of Article 23;

3. A death certificate; and

4. Documents attesting the fact of receiving a retirement pension, early retirement pension, or veterans' pension in the event that the recipient of a bereaved family pension applies to the provisions of Article 45-2 of the mutatis mutandis Act. (2) The head of the school institution in receipt of the written claim pursuant to the provisions of the text of section (1) shall, without delay, investigate and confirm the matters necessary for the payment of the benefits, and transfer such written claim to the KTP.

Article 59 (Application for Transfer of Right to Receive Bereaved Family Pension) (1) Where a person receiving a bereaved family pension is missing for not less than one year or the right to receive such pension is lost, if one of the bereaved family with the same order or the next order intends to receive such bereaved family pension, he/she shall submit an application form for transfer of the right to receive a bereaved family pension attached with the following documents to the KTP:

1. Documents proving one of the bereaved family members pursuant to the provisions of Article 2;

2. Documents attesting their representative where a representative of the bereaved family members with the same order claims such benefits, pursuant to the provisions of Article 23;

3. Documents proving the fact of missing not less than one year or the fact of losing the right to receive a bereaved family pension;

4. A certificate of bereaved family pension (a written statement of reason if such certificate is not attachable); and

5. Documents proving the fact of receiving a retirement pension, early retirement pension, or veterans' pension where the person entitled for a bereaved family pension applies to the provisions of Article 45-2 of the mutatis mutandis Act. (2) The KTP in receipt of the application under section (1) shall, where the contents of the application is deemed appropriate, state the fact of transfer of the right to receive a pension in the certificate of the bereaved family pension or issue a new pension certificate, and deliver it to the applicant.

Article 60 (Proof of Losing Right to Receive Bereaved Family Pension or Fact of Missing)

(1) Proof of the fact of losing the right to receive a bereaved family pension as prescribed in subsections of Article 59 (1) of the mutatis mutandis Act shall be by the following methods:

1. Fact of death, remarriage, or kinship: by certificates concerning the recorded matters for family relation stating the relevant fact, or a certified copy of family residential registration papers;

2. Fact of reaching age of 18 of the children or grandchildren who are not under incurable diseases: by certificates concerning the recorded matters for family relation, or a certified copy of family residential registration papers; and

3. Fact that a child or grandchild of age over 18 who has been under such status of incurable disease is cured: by medical certificates issued by convalescent institutions. (2) In the event that the reasons for such loss cannot be proved by the methods under section 1 and 3, it shall be by the written statement of reason and the letter of confirmation issued by the head of the City/Gun/Gu.

(3) Proof of the fact that a person receiving a bereaved family pension as prescribed in Article 58 of the mutatis mutandis Act has been missing for not less than one year shall be by the letter of confirmation issued by the head of the City/Gun/Gu.

Article 60-2 (Report of Losing Right to Receive Bereaved Family Pension) Where the right to receive a bereaved family pension has been lost pursuant to the provisions of Article 59 (1) of the mutatis mutandis Act, the persons applicable to one of the following subsections shall report such fact to the KTP within 15 days from the date such cause has occurred.

1. A person having liability to report under Act 85 of the Act on the Registration, etc. of Family Relationship where a person is receiving a bereaved family pension;

2. The person in question where it is lost due to the termination of kinship including remarriage;

3. The legal representative if a child or grandchild has reached the age of 18; and

4. The person in question or his/her legal representative where a child or grandchild of age over 18 who has been under such status of incurable disease is cured. [This Article Newly Inserted by Presidential Decree No. 17096, Dec. 30, 2000] Article 61 (Payment of Deducted Amount of Bereaved Family Compensation) In the event that a person who received disability compensation or is receiving disability pension has died due to the relevant disease or injury, the amount of the disability pension or disability compensation which was already paid shall be deducted from the amount of the bereaved family compensation as prescribed in Article 61 (2) of the mutatis mutandis Act, and the remaining balance shall be paid.

[This Article Wholly Amended by Presidential Decree No. 10365, Jun. 23, 1981] Article 62 Article 63 (Claim for Bereaved Family Compensation) (1) In the event that a person who is or was a teacher or staff member has died due to the disease or injury in the line of duties as prescribed in Article 29, his/her bereaved family shall submit a written claim for bereaved family compensation attached with the documents under subsections of Article 58 (1) to the head of the school institution to which the person who was a teacher or staff member belongs. In this case, the documents to be attached may be omitted in the event that a written claim for the bereaved family benefits under Article 58 (1) is also submitted.

(2) The head of the school institution in receipt of the written claim under section (1) shall, without delay, investigate and confirm the details of death, and transfer such written claim attached with the following documents:

1. A photocopy of health card; and

2. Investigation report on the details of death. [This Article Wholly Amended by Presidential Decree No. 12664, Mar. 27, 1989] SUBSECTION 5 Retirement Allowances

Article 63-2 (Claim for Retirement Allowances)

A person who intends to receive the retirement allowances pursuant to the provisions of Article 61-2 (1) of the mutatis mutandis Act shall submit a written claim for retirement allowances (including a written claim in electronic document, and the same shall apply hereinafter) to the head of the school institution to which he/she belonged at the time of retirement, and the head of the school institution to which he/she belonged shall, without delay, investigate and confirm the reason for reduction of period of service, reason for restricting benefits, and other matters necessary for the payment of the benefits, and transfer such claim to the Corporation.

[This Article Newly Inserted by Presidential Decree No. 13554, Dec. 31, 1991] Article 63-3 (Retirement Allowances)

The amount of retirement allowances as prescribed in Article 61-2 (2) of the mutatis mutandis Act shall be the amount derived by multiplying the ratio under the following classification to the amount of monthly remuneration per year of the period of service. In this case, the years of period of service shall not exceed 33 years:

1. 10/100 where the period of service is not less than one year and less than five years;

2. 35/100 where the period of service is not less than five year and less than ten years;

3. 45/100 where the period of service is not less than ten year and less than fifteen years;

4. 50/100 where the period of service is not less than fifteen year and less than twenty years; and

5. 60/100 where the period of service is not less than twenty years. [This Article Newly Inserted by Presidential Decree No. 13554, Dec. 31, 1991] SECTION 4 Restriction on Benefits

Article 64 (Reduction of Benefits Due to Gross Negligence) In the event that a person who is or was a teacher or staff member falls under the provisions of Article 62-3 of the mutatis mutandis Act, the disability pension, disability compensation, and bereaved family compensation for such person corresponding to the period after the date of such application shall be paid by deducting one half of the amount of the relevant benefits.

Article 65 (Reduction of Benefits at the Time of Refusal of Medical Examination) In the event that a person who is or was a teacher or staff member has not taken the medical examination requested by the head of the KTP or the school institution in relation to the payment of the benefits without any justifiable reasons, the convalescence expenses in the line of duties, the lump sum for convalescence in the line of duties, the disability compensation, and the bereaved family compensation shall be paid by deducting one half thereof from the date of refusal.

[This Article Wholly Amended by Presidential Decree No. 10985, Dec. 31, 1982] Article 66 (Reduction of Retirement Benefits and Retirement Allowances Due to Punishment, etc.)

(1) In the event that a person who is or was a teacher applies to any of the subsections of Article 64 (1) of the mutatis mutandis Act, the retirement benefits and retirement allowances shall be reduced in accordance with the classification under the following subsections. In this case, the retirement pension or early retirement pension shall not be reduced until the month to which the date of the corresponding reason for such reduction:

1. A person falling under Article 64 (1) 1 and 2 of the mutatis mutandis Act: (a) One quarter of the amount of retirement benefits for a person whose period of service is less than five years;

(b) One half of the amount of retirement benefits for a person whose period of service is not less than five years; and

(c) One half of the amount of retirement allowances;

2. A person applicable to Article 64 (1) 3 of the mutatis mutandis Act: (a) One eighth of the amount of retirement benefits for a person whose period of service is less than five years;

(b) One quarter of the amount of retirement benefits for a person whose period of service is not less than five years; and

(c) One quarter of the amount of retirement allowances; (2) The amount of the retirement benefits and retirement allowances to be suspended for payment pursuant to the provisions of Article 64 (2) of the mutatis mutandis Act shall be the amount as prescribed in subsections of section (1). (3) In the event that a person for whom the payments of retirement benefits and retirement allowances were suspended pursuant to the provisions of Article 64 (2) of the mutatis mutandis Act has come under one of the following subsections, the remainder money shall be paid with the interest computed at an annual compound interest by applying the highest among the interest rates for time deposits applied by nationwide banks as of Jan. 1 of each relevant year for the period starting from the month following the month to which the date of suspension of the payment of the benefits to the month to which the date that the cause for payment of the remainder money has occurred.

1. Where he/she has received a disposition of non-prosecution;

2. Where it is settled that he/she does not receive a punishment of imprisonment; and

3. Where he/she has received a judgment of probation of sentence of a punishment of imprisonment, and such probation period has elapsed. (4) When the head of the school institution transfers the written claim for the retirement benefits or retirement allowances of the person falling under section (1) or (2), he/she shall state the relevant facts in the written claim. Where he/she has become aware of such relevant facts after he/she transferred the written claim for the retirement benefits or retirement allowances, he/she shall, without delay, notify such facts to the KTP. (5) A person who intends to receive the remaining balance as prescribed in section (3) shall submit a written claim for the remaining retirement benefits or remaining retirement allowances attached with the document applicable to one of the following subsections to the KTP:

1. A letter of determination of disposition of non-prosecution issued by the head of the competent prosecutors' office where he/she applies to section (3) 1;

2. A letter of certification of settlement of criminal trial issued by the head of the competent prosecutors' office where he/she applies to section (3) 2 or 3. [This Article Wholly Amended by Presidential Decree No. 14906, Feb. 2, 1996] Article 67 Article 68 (Payment after Deducting Unpaid Money) (1) Where there is unpaid money or other debt to the KPT under the following subsections until a teacher or staff member has retired or died, the retirement benefits, bereaved family payment, or retirement allowances shall be paid after deducting such unpaid money or debts: Provided, that the same shall not apply where the payment has not been made by the reasons of fault attributable to the head of the school institution:

1. The principal and interest of the return money as prescribed in Article 32 (3) of the Act;

2. The principal and interest of the recovery money as prescribed in Article 25;

3. Individual contributions and its unpaid arrears as prescribed in Articles 45 and 51 of the Act;

4. The principal and interest of the loan as prescribed in Article 53-3 (2) 3 of the Act; and

5. Other debts to the KTP. (2) Where a person who intends to receive the benefit, which is a pension, has any debt (excluding subsection 1) as prescribed in section (1), such debt shall be paid by other retirement benefits, bereaved family benefits, or retirement allowances other than the benefit which is a pension, and if there is any remaining debt, such remaining debt may be paid by the monthly pension of the relevant year within the limit of not exceeding one half of the monthly pension. (3) The head of a school-operating institution or a school in receipt of the written claim for retirement benefits, bereaved family benefits, or retirement allowances shall investigate whether or not there is any debt under section (1) and record the confirmation in the written claim, and transfer to the KTP.

[This Article Wholly Amended by Presidential Decree No. 8174, Jun. 25, 1976] CHAPTER 5 BEARING EXPENSES

Article 68-2 (Amounts of Individual Contributions, State Contributions, and Corporate Contributions)

(1) The amount of individual contributions as prescribed in Article 44 (4) of the Act shall be 85/1,000 of the amount of the monthly remuneration. (2) The term "amount prescribed by Presidential Decree" in Article 46 (1) 1 of the Act shall be 35/85 of the aggregate amount of the individual contributions borne by the teachers in accordance with section (1). (3) The amount of corporate contributions as prescribed in Article 47 (2) of the Act shall be 50/85 of the aggregate amount of individual contributions borne by the relevant school teachers pursuant to the provisions of section (1). [This Article Newly Inserted by Presidential Decree No. 14906, Feb. 2, 1996] Article 69 (Payment of Individual Contributions and Corporation Contributions) (1) When the head of the school institution has received the individual contributions, corporate contributions, return money, and recovery money, and makes payment to the KTP, it shall pay to the pension receiving institution, by submitting the payment money together with the credit notice

(2) The pension receiving institution which has received the payment money under section (1) shall deliver the receipt thereof to the head of the school institution, and submit the credit notice to the KTP. (3) The KTP shall investigate and confirm the credit notice under section (2) and record such in the receipt register, and if there is any mistaken payment, it shall adjust such mistake. [This Article Wholly Amended by Presidential Decree No. 8174, Jun. 25, 1976] Article 69-2 (Disaster Compensation Contributions) (1) The amount of the disaster compensation contributions as prescribed in Article 48-2 (1) of the Act shall be 2.5/55 of the aggregate amount of the individual contributions (excluding the amount borne due to the inclusion of the period of service or retroactive adding up).

(2) The reserves for payment of benefits for the compensation for disasters accumulated pursuant to the provisions of Article 48-2 (2) of the Act shall be implemented in the following methods:

1. Deposit or entrusting in the financial institutions prescribed in the subsections of Article 87-2 (1); and

2. Purchase of securities under Article 87-2 (2) 1. (3) In the event that the reserves for payment of benefits for the compensation for disasters are short of the benefits under Article 48-2 (3) of the Act, the KTP may temporarily borrow the shortage from the pension fund for private school teachers and staff (hereinafter referred to as the "Fund") as prescribed in Article 53-2 of the Act. In this case, the temporarily borrowed money shall be returned by the end of the next fiscal year.

[This Article Wholly Amended by Presidential Decree No. 10985, Dec. 31, 1982] Article 69-3 (Bearing of Expenses Required for Payment of Retirement Allowances) (1) The amount borne by the KTP among the expenses required for the payment of retirement allowances as prescribed in the proviso of Article 47 (2) of the Act shall be the amount borne by the KTP for the expenses for the retirement allowances in the fiscal year of

1992. (2) The remaining amount of the expenses required for the payment of retirement allowances as prescribed in the proviso of Article 47 (2) of the Act after excluding the amount borne by the KTP pursuant to the provisions of section (1) shall be borne by the school-operating institutions and the State; and the State shall bear such expenses until the financial conditions of the school-operating institutions are improved. (3) In the event that the amount borne by the State for the relevant year is short of or exceeds the amount actually required, the difference shall be adjusted to the contributions for the next year. [This Article Wholly Amended by Presidential Decree No. 13861, Feb. 24, 1993] Article 70 (Appropriation of State Contributions) (1) The State shall appropriate the required amount of the State contributions as prescribed in Article 46 and the proviso of Article 47 (2) of the Act in the budget every year. In this case, where there is any shortage in the previous year, such shortage shall also be appropriated. (2) The KTP shall calculate the required amount for the State contributions for the next fiscal year by March 31 of each year, and submit the clarified details of such calculation to the heads of the central administrative agencies (including the affiliated agencies under the President and the affiliated agencies and supporting agencies under the Prime Minister, and the same shall apply hereinafter).

Article 70-2 (Interest Rate for Adjustment of State Contributions) The interest ensuing from the State contributions and the adjustment of the State contributions as prescribed in Article 46 (4) of the Act shall be adjusted by applying the highest among the interest rates for time deposits applied by nationwide banks as of Jan. 1 of each relevant year, and it is calculated at a compound interest by each fiscal year. [This Article Newly Inserted by Presidential Decree No. 17096, Dec. 30, 2000] Article 71 (Payment of State Contributions)

(1) The State contributions as prescribed in Article 46 of the Act shall be paid to the pension receiving institution by the head of the central administrative agency concerned by the first month of each quarter by dividing one year into four quarters, and the pension receiving institution which has received such payment shall deliver the receipt thereof to the head of the central administrative agency concerned, and forward the credit notice to the KTP without delay.

(2) Article 72 Article 72-2 (Collection of Default Charge)

(1) The default charge as prescribed in Article 51 of the Act shall be the amount calculated by applying the highest among the lending interest rates for arrears applied by nationwide banks as of Jan. 1 of the year to which the default period belongs to the number of days of exceeding the payment deadline: Provided, that where the individual contribution has not been paid because the full amount of remuneration was not received due to reasons other than temporary retirement from office or the report on appointment was delayed due to unavoidable cause, a separate payment of individual contributions for the unpaid period on the basis of the amount of individual contributions of the month such payment of individual contributions is to be made may substitute for the payment of the unpaid individual contributions and default charges. (2) In the event that the contributions have not been paid due to natural calamity, disaster, and other unavoidable causes, the default charge under section (1) shall not be collected. [This Article Wholly Amended by Presidential Decree No. 9949, Jul. 8, 1980] Article 73 (Compulsory Collection)

(1) The KTP shall, where the recovery money as prescribed in Article 25, the individual contributions and corporation contributions as prescribed in Article 69, or the disaster compensation contributions as prescribed in Article 69-2 have not been paid within the designated period, issue a collection letter by specifying the deadline not less than one month and not more than three months from such designated period.

(2) The collection letter under section (1) shall clearly state the intent of compulsory collection according to the examples of disposition on default national taxes if the payment is not made by the collection deadline.

(3) In the event that the KTP deems that the disposition on the default is inevitable due to the reasons applicable to one of the following subsections, it shall submit a written application for approval of disposition on default to the Minister.

1. Where the period of default is not less than six months, provided that where the collection deadline has passed in the case of recovery money; or

2. A school-operating institution is dissolved or has received the disposition of revocation of authorization.

(4) In the event that the Minister has received the application for approval of the disposition on default as prescribed in section (3), he/she shall determine whether or not to approve and notify the result thereof to the KTP within 30 days from the date of receipt of such application. (5) When the officers and staff execute the disposition on default pursuant to the provisions of Article 52 (3) of the Act, they shall show the letter of approval of disposition on default and their identification card to the interested persons.

Article 73-2 (Disposition on Deficits)

The disposition on deficits as prescribed in Article 52 (4) 3 of the Act may be executed in the following cases:

1. Where the delinquent has been missing for a long period of time or it is found that he/she has no assets; and

2. Where the recovery is deemed impossible due to other unavoidable reasons. [This Article Newly Inserted by Presidential Decree No. 17096, Dec. 30, 2000] Article 74 (Computation of Individual Contributions Where Monthly Remuneration Amount Has Been Changed)

Where there are more than one standard amount of monthly remuneration of a teacher or staff member due to the change in the amount of monthly remuneration, the head of the school institution shall compute the individual contributions of the relevant month on the basis of the amount of the monthly remuneration as of the payment date of remuneration of the relevant month.

Article 75 (Report on Changes in Status)

In the event that a teacher or staff member is retired, deceased, transferred (including the case where a retired teacher or staff member has been reappointed as a teacher or staff member on the date of retirement or the day after the date of retirement, and he/she has not received the retirement benefit and retirement allowances; hereinafter the same shall apply), temporarily retired, or there is any other change in the status of a teacher or staff member while in service, the head of the school institution shall, without delay, submit a written report on the change in status (including a written report in electronic document) to the KTP. [This Article Wholly Amended by Presidential Decree No. 18888, Jun. 30, 2005] Article 75-2 (Transfer of Pension Amount)

(1) Where a person entitled to receive a retirement pension, early retirement pension, or veterans' pension as prescribed in the Public Officials Pension Act or the Veterans' Pension Act was appointed as a teacher or staff member, and where he/she has retired or died after he/she received the adding up of the periods of service as prescribed in the relevant pension Act pursuant to the provisions of Article 32 of the Act, the KTP shall, without delay, request the Government Employees Pension Service or the Minister of National Defense for the transfer of the amount of benefits as prescribed in Article 52-2 (1) of the Act.

(2) The amount to be transferred by the Government Employees Pension Service or the Minister of National Defense to the KTP pursuant to the provisions of section (1) shall be the amount of benefits which the teacher or staff member receive pursuant to the provisions of the Public Officials Pension Act or the Veterans' Pension Act at the time of retirement or death, pursuant to the provisions of Article 52-2 (1) of the Act. In this case, the amount of the benefits shall be the amount (referring to the amount reduced by the percentage of reduction for the early retirement pension under the Private School Teachers and Staff Pension of the retirement pension or veterans' pension in the case of early retirement pension) computed by deeming that the same type of cause for the payment of benefits as the cause for the payment pursuant to the provisions of the Private School Teachers and Staff Pension Act has occurred in the same manner under the Public Officials Pension Act or the Veterans' Pension Act. (3) The Government Employees Pension Service or the Minister of National Defense shall transfer the benefits as prescribed in section (1) by the following methods:

1. The retirement pension, early retirement pension, veterans' pension, or bereaved family pension shall be transferred every period by dividing one year into two periods, and the portion for the first half shall be transferred by the end of March, and the portion for the second half shall be transferred by the end of September; and

2. For the benefits as prescribed in Article 38 of the Act, the benefits to be received in substitution for the pension as prescribed in the provisions of Article 44 of the mutatis mutandis Act, and additional money for the bereaved family pension and special additional money for the bereaved family pension as prescribed in Article 56 of the same Act, the portion of payment for the period of September of the previous year through February of the current year shall be transferred by the end of March of the current year, and the portion of payment for the period of March through August of the current year shall be transferred to the end of September of the current year. (4) While the KTP receives the transfer by half year pursuant to the provisions of Article 52- 2 (1) and (3) of the Act from the Government Employees Pension Service or the Minister of National Defense, it shall investigate whether or not there occurs any cause for extinguishment of the right to receive retirement pension, right to receive early retirement pension, right to receive veterans' pension, or right to receive bereaved family pension, or any cause for reduction thereof, or other cause affecting the transfer, at least once a year, and notify the result thereof to the Government Employees Pension Service or the Minister of National Defense. (5) In the event that the Government Employees Pension Service or the Minister of National Defense has not transferred the relevant benefits to the KTP within the period under section (3), he/she shall add the interest computed by applying the highest among the interest rates for time deposits applied by nationwide banks as of Jan. 1 of each relevant year for the delayed period to the benefits and pay, and the interest shall be computed at a compound interest by each fiscal year.

[This Article Newly Inserted by Presidential Decree No. 10985, Dec. 31, 1982] CHAPTER VI REQUEST FOR EXAMINATION

Article 76 (Organization of Benefits Review Committee) (1) The Review Committee on the Pension Benefits for Private School Teachers and Staff as prescribed in Article 53 of the Act (hereinafter referred to as the "Benefits Review Committee") shall be composed of nine members. (2) The members under section (1) shall be appointed or commissioned by the Minister from grade 5 public officials (including public officials belonging to high-ranking public officials), supervisory officials, persons in medical communities, persons in judicial communities, and persons having profound academic knowledge and experience in social security.

Article 77 (Term of Office of Member)

(1) The term of office of members shall be three years, excluding the case where a member who is a public official has retired or has been transferred. (2) The term of office for the substitute member shall be the remaining period of the term of office of the predecessor.

(3) The members may be consecutively reappointed. Article 78 (Chairperson)

(1) A chairperson shall be placed in the Benefits Review Committee, and the chairperson shall be elected from and by its members.

(2) The chairperson shall exercise overall control of the affairs of the committee, and where the chairperson is unable to perform his/her duties due to unavoidable reasons, the person designated by the chairperson shall vicariously perform such duties.

Article 79 (Session)

(1) The meetings of the Benefits Review Committee shall be convened by the chairperson. (2) The resolution of the meetings of the Benefits Review Committee shall require attendance of a majority of the registered members and consenting votes of a majority of the present members.

Article 80 (Administrative Affairs and Allowances, etc. for Members) (1) One executive secretary and several clerks shall be placed in the Benefits Review Committee to deal with the administrative affairs of the Benefits Review Committee. And the executive secretary and clerks shall be appointed by the executive director of the KTP among the staff under his/her jurisdiction.

(2) The KTP shall pay allowances to the members (excluding the members who are officers or staff of the KTP) who have attended the Benefits Review Committee within the limit of the budget. (3) Matters necessary for the operation of the Benefits Review Committee shall be determined by the chairperson upon the resolution of the Benefits Review Committee. Article 81 (Procedures for Request for Examination) (1) When a person, who has an objection to the determination on the benefits, collection of contributions, and other determinations concerning the benefits as prescribed in the Act, intends to request the Benefits Review Committee for an examination pursuant to the provisions of Article 53 (1) of the Act, he/she shall submit a written application attached with a statement of reasons to the KTP within the period prescribed by Article 53 (2) of the Act.

(2) The KTP in receipt of the application under section (1) shall transmit such application attached with a letter of explanation and other necessary documents to the Benefits Review Committee within ten days. Article 82 (Supplementation of Written Application and Rejection of Application) (1) Where there are any unprepared matters in the written application for examination under Article 81 (1) or the letter of explanation under section (2) of the same Article, the Benefits Review Committee shall demand the applicant or the institution which executed the relevant disposition for supplementation by designating the period for supplementation.

(2) Where the applicant has not supplemented within the period for supplementation under section (1), and where the Benefits Review Committee is unable to make a deliberation with the facts stated in the written application alone, it may reject such application. Article 83 (Notice to Related Persons)

(1) Where there is an application for examination as prescribed in Article 81, the Benefits Review Committee shall give a notice to the teachers and staff and the head of the school institution related to the relevant application of examination, and other related persons. (2) Any person who has received the notice under section (1) may state his/her opinion in respect to the relevant case to the Benefits Review Committee.

Article 84 (Report or Statement of Opinion)

Where the Benefits Review Committee deems it necessary for the examination, it may have the person who requested the examination or other related persons report or state opinions, or summon them for questioning.

Article 85 (Determination on Examination)

(1) The determination on examination shall be made based on documents. (2) The letter of determination under section (1) shall state the order and the reasons thereof, and be signed and sealed by the chairperson and present members, and the certified copies thereof shall be delivered to the applicant, the head of the school institution, and other related persons.

Article 86 (Effect of Determination)

The matters determined by the Benefits Review Committee shall enter into effect at the time the certified copy of the letter of determination is delivered to the applicant.

Article 87 (Compensation of Actual Expenses to Interested Persons) The KTP shall compensate the related persons who attend the Benefits Review Committee for the actual expenses pursuant to the provisions of Article 84.

CHAPTER VII PENSION FUND FOR PRIVATE SCHOOL TEACHERS AND STAFF

Article 87-2 (Operation Method of Pension Fund for Private School Teachers and Staff) (1) The financial institutions to which the Pension Fund for Private School Teachers and Staff (hereinafter referred to as the "Fund") can be deposited or entrusted pursuant to the provisions of Article 53-3 (2) 1 of the Act shall be as follows:

1. Financial institutions under the Banking Act;

2. Investment trading business operators, investment brokerage business operators, collective investment business operators, trust business operators, investment advisory business operators, entrusted investment business operators, securities finance enterprise, and merchant banks under the Capital Market and Financial Investment Business Act;

3. and 4.

5. Postal agencies under the Postal Savings and Insurance Act;

6. Mutual savings banks under the Mutual Savings Banks Act; and

7. Insurance companies under the Insurance Business Act. (2) The scope of securities as prescribed in Article 53-3 (2) 2 of the Act shall be as follows:

1. Securities under Article 4 of the Capital Market and Financial Investment Business Act;

2. ; and

3. Securities which are approved by the Minister to purchase by determining the scope of purchase, other than the securities applicable to subsection 1. (3) The businesses for increasing the Fund or to improve the welfare as prescribed in Article 53-3 (2) 5 of the Act shall be as follows:

1. Real estate leasing business and other businesses to increase the value or usefulness of real estate;

2. Businesses operating hospitals, recreation facilities, convalescent facilities, shops, and other welfare facilities;

3. Tourist business and its incidental businesses;

4. Transaction of exchange traded derivatives under Article 5 (2) of the Capital Market and Financial Investment Business Act (applicable only to the derivatives in the derivatives markets under Article 9 (14) of the same Act);

5. Transaction of derivative financing (excluding transaction for the purpose of speculation) as prescribed in Article 3 (1) 17 of the Foreign Exchange Transaction Act;

6. Investment in venture businesses as prescribed in Article 4 (1) of the Act on the Special Measures for the Promotion of Venture Businesses; 6-2. Capital investment in the small and medium start-up business investment association referred to in subsection 5 of Article 2 of the Support for Small and Medium Enterprise Establishment Act, and capital investment in the venture business investment association referred to in the Specialized Credit Financial Business Act; 6-3. Capital investment in the Korea Venture Fund referred to in Article 4-3 of the Act on the Special Measures for the Promotion of Venture Businesses; and

7. Other businesses recognized by the Minister among the businesses from which profits higher than the rate of interest for long-term time deposits. [This Article Newly Inserted by Presidential Decree No. 16734, Feb. 28, 2000] Article 87-3 (Organization of Operation Committee of Pension for Private School Teachers and Staff ) (1) (2) The members of the Operation Committee of the Pension for Private School Teachers and Staff (hereinafter referred to as the "Operation Committee") shall be as follows:

1. Three persons who are in charge of private school teachers and staff pension system or affairs related with operation of the Fund among public officials of grade 4 or higher (including public officials in general service belonging to high-ranking public officials);

2. Two officers of the KTP related with the pension affairs of private school teachers and staff;

3. Five teachers and staff of private schools recommended by teachers and staff organizations;

4. Three persons from the founders and administrators of private schools;

5. One person who receives a retirement fund;

6. Two persons belonging to the non-profit non-governmental organizations as prescribed in the Assistance for Non-profit, Non-governmental Organizations Act; and

7. Three persons having profound academic knowledge and experience in pension for private school teachers and staff.

(3) The term of office for the members shall be three years, and the members may consecutively serve as members: Provided, that the term of office for the members who apply to the provisions of section (2) 1 and 2 shall be the period of service in the relevant positions. [This Article Newly Inserted by Presidential Decree No. 16734, Feb. 28, 2000] Article 87-4 Article 87-5 (Duties of Chairperson)

(1) The chairperson shall represent the Operation Committee and exercise overall control of the affairs of the Operation Committee.

(2) The resolution of the meeting shall require attendance of a majority of the registered members and consenting votes of a majority of the present members.

(3) The auditor of the KTP may attend the Operation Committee and state his/her opinion. [This Article Newly Inserted by Presidential Decree No. 16734, Feb. 28, 2000] Article 87-7 (Executive Secretary and Clerks)

(1) An executive secretary and several clerks shall be placed in the Operation Committee to deal with the administrative affairs of the Operation Committee.

(2) The executive secretary and clerks shall be appointed by the chairperson from the staff of the KTP.

[This Article Newly Inserted by Presidential Decree No. 16734, Feb. 28, 2000] Article 87-8 (Allowances)

The KTP may pay allowances to the members who have attended the meetings of the Operation Committee within the limit of the budget.

Article 87-9 (Public Notice of Operation of Fund) The Minister shall publicly notify the settlement of the Fund in the Official Gazette within three months after the expiration of the fiscal year every year. [This Article Newly Inserted by Presidential Decree No. 16734, Feb. 28, 2000] CHAPTER VIII SUPPLEMENTARY PROVISIONS

Article 88 (Base Date of Prescription)

(1) Where a person, who requested the Benefits Review Committee for an examination on his/her objection pursuant to the provisions of Article 53 (1) of the Act and Article 81 (1) of this Decree, has received a decision on acceptance for the application or has received a favorable judgment after filing a lawsuit, the period of prescription under Article 54 (1) of the Act for the right to receive the benefits related therewith shall be reckoned from the date of such acceptance or the date of decision of such judgment.

(2) Where the payment of the whole or part of the benefits has been suspended pursuant to the provisions of Article 66 (2) and (3), the period of prescription under Article 54 (1) of the Act for the right to receive the suspended benefits shall be reckoned from the date such cause for suspension has been extinguished.

Article 89 (Computerized Management of Matters Related to Pension) The KTP shall manage the following information related to pension for the teachers and staff under the application of the Act by computer processing:

1. Matters concerning payments of contributions, money to be returned, etc.;

2. Matters related to changes in status such as new appointment, promotion, promotion to higher grade, transfer-out, transfer-in, demotion, temporary retirement, disciplinary action, retirement, etc.;

3. Matters related to lending for school expenses entrusted by the National Treasury, and lending implemented by the KTP; and

4. Other matters related to pensions. [This Article Wholly Amended by Presidential Decree No. 18888, Jun. 30, 2005] Article 89-2 (Report on Appointment of Newly Appointed Teachers and Staff) The head of a school institution shall, where any teacher or staff under his/her jurisdiction has been newly appointed, immediately submit a report on the appointment of the teacher or staff member, and the KTP shall take the post and qualification, etc. of the teacher or staff member into account in accordance with the report on appointment of a teacher or staff member and determine the standard amount of monthly remuneration, and notify the result thereof to the head of the school institution.

[This Article Wholly Amended by Presidential Decree No. 18888, Jun. 30, 2005] Article 90 Article 91 (Registration of Seal)

The head of the school institution and the head of the school shall register the seal of the newly appointed teacher or staff member at the KTP. The same shall apply in the event of changing the registered seal.

[This Article Wholly Amended by Presidential Decree No. 18888, Jun. 30, 2005] Article 92 (Survey of Actual Conditions of Persons in Service) Where the KTP deems necessary for collection of data for the long-term estimation of the funds required for the benefits and improvement of the benefit system, it may request the heads of school institutions to survey the actual conditions of the teachers and staff. Article 93 (Format, etc.)

The detailed matters and format of documents concerning the enforcement of this Decree shall be determined by the KTP and publicly announced. [This Article Newly Inserted by Presidential Decree No. 17096, Dec. 30, 2000] Article 94 (Cooperation of Competent Agency)

Where the competent agency authorizes the establishment, abolition, and dissolution of a school institution, or cancel such authorization, it shall notify such fact to the KTP within one month from the date of authorization or cancellation.

[This Article Newly Inserted by Presidential Decree No. 8818, Dec. 31, 1977] Article 95 (Notice When Increasing or Decreasing Quota) In the event that there is any increase or decrease in quota of the staff determined by the articles of association or regulations of the relevant institution, the head of the school institution shall, without delay, notify such fact to the KTP. [This Article Newly Inserted by Presidential Decree No. 8818, Dec. 31, 1977] Article 96 (Entrusted Business and Bearing of Expenses) The businesses which may be entrusted to the KTP by the State pursuant to Article 60-3 of the Act, which are businesses necessary for the improvement of teachers and staff shall be as follows:

1. Business of lending school expenses; and

2. Housing business. (2) The expenses required for the business of lending school expenses under section (1) 1 shall be borne by the State from the budget. In this case, the State may have the Fund lend a part thereof, and the interest borne by the State for the amount lent by the Fund shall be the amount corresponding to the highest one the interest rates for one-year time deposits applied by nationwide banks as of Jan. 1 of the year to which the payment date of each year belongs. (3) The amount lent by the Fund pursuant to the provisions of the latter part of section (2) shall be returned by the State in full or by installments within three years after two years' deferment, and the State shall reflect the principal and its interest in the budget, and pay it to the KTP.

(4) The rate of interest in the case that the State does not pay the principal and interest within the period as prescribed in section (3) shall be the highest among the interest rates for time deposits applied by nationwide banks as of Jan. 1 of each relevant year for the period in arrears, and it shall be computed at a compound interest by the fiscal year.

[This Article Newly Inserted by Presidential Decree No. 10365, Jun. 23, 1981] Article 97 (Imposition of Fine for Negligence)

(1) The imposition of fine for negligence as prescribed in Article 62 (3) of the Act shall be implemented by forwarding a notice to pay the fine for negligence which clearly states the fact of violation, after investigation and confirmation of the relevant offense. (2) Where the Minister intends to impose a fine for negligence pursuant to the provisions of section (1), he/she shall give the person subject to disposition of a fine for negligence an opportunity to state his/her opinion orally or in writing (including electronic document). In this case, where there has been no statement of opinion by the designated date, it shall be deemed that there is no opinion. (3) In determining the amount of fine for negligence, the Minister shall take into consideration the motives of the relevant offenses and the results thereof, etc. [This Article Newly Inserted by Presidential Decree No. 11364, Feb. 25, 1984] Article 98 (Report by KTP)

(1) In the event that there is any offender as prescribed in Article 62 (2) of the Act, the KTP shall prepare a report thereon, and submit it to the Minister.

(2) The report as prescribed in section (1) shall be attached with the statement received from the relevant offender and other documents which can prove the fact of offense, and the written opinion of the KTP.

[This Article Newly Inserted by Presidential Decree No. 11364, Feb. 25, 1984] ADDENDA (Enforcement Decree of the Capital Market and Financial Investment Business Act) Article 1 (Enforcement Date)

This Decree shall enter into effect on Feb. 4, 2009. Articles 2 through 25 Omitted.

Article 26 (Amendment of Other Laws and Regulations) (1) through <57> Omitted.

<58> Part of the Enforcement Decree of the Private School Teachers and Staff Pension Act shall be amended as follows:

The term "valuable securities" in Article 69-2 (2) 2 shall be changed to "securities". Article 87-2 (1) 2 shall be as follows, and subsections 3 and 4 of the same section shall be deleted, respectively:

2. Investment trading business operators, investment brokerage business operators, collective investment business operators, trust business operators, investment advisory business operators, entrusted investment business operators, securities finance enterprise, and merchant banks under the Capital Market and Financial Investment Business Act; Article 87-2 (2) 1 shall be as follows, and section (3) 4 of the same Article shall be as follows:

1. Securities under Article 4 of the Capital Market and Financial Investment Business Act;

4. Transaction of exchange traded derivatives under Article 5 (2) of the Capital Market and Financial Investment Business Act (applicable only to the derivatives in the derivatives markets under Article 9 (14) of the same Act);

<59> through <113> Omitted.

Articles 27 and 28 Omitted.


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