The Ministry of Health and Welfare said on the 21st it will review ways to improve the system that allows foreigners to make retroactive National Pension payments. The move follows reports of people who enrolled in the National Pension for just one month, then paid their premiums in a lump sum and received an old age pension for life.
The retroactive payment system recognizes National Pension enrollment periods if a person who could not pay premiums due to job loss or business closure later pays the amount owed. It was introduced in 1999. Since November 2016, retroactive payments have been allowed for up to 119 months.
As a result, even if someone pays for only one month, paying 119 months of premiums later meets the 120-month enrollment period required to receive an old age pension. In one reported case, a Chinese national entered on a work-and-visit visa, enrolled in the National Pension for only one month, then paid 119 months of retroactive premiums in a single lump sum and has been receiving a monthly old age pension.
The ministry plans to improve the retroactive payment system. A ministry official said, "We are reviewing improvement plans by looking at how foreigners use the retroactive payment system and overseas examples," adding, "If necessary, we will push for system improvements, including revising relevant laws and regulations."