국민연금 반환일시금A lump sum refund is a benefit paid in a lump sum by adding interest to the premiums paid in the event that you can no longer maintain your status as a national pension subscriber and do not meet the pension eligibility requirements due to reasons such as death, loss of nationality, or emigration even after reaching the age of 60.
[Requirements for receiving lump sum refund]
1. When a person whose subscription period is less than 10 years turns 60 (however, this does not apply to special old-age pension recipients)
2. If the subscriber or former subscriber dies but is not eligible for survivor pension
3. If you have lost your nationality or moved abroad
However, even if you have lost your national pension eligibility, if you engage in an income-earning job before reaching the age of 60, you will become a subscriber again and will not be able to receive the lump sum refund immediately. Additionally, if you stay abroad for other reasons such as employment, study, or other reasons other than the purpose of moving abroad, you cannot receive a lump sum refund regardless of the period.
As such, it is difficult for current national pension subscribers to find and use the premiums paid before turning 60 unless they die or move overseas.
However, things were different before 1999. At that time, you did not have to wait until you turned 60 to claim and receive a lump sum refund from the National Pension Service just one year after retiring from your job.
There are quite a few people in their 50s and 60s who have received a lump sum refund.
This was especially true among people like Choi Dong-won who lost their jobs due to the IMF foreign exchange crisis. Whatever the reason, if you receive a lump sum refund, your experience of paying national pension premiums will also disappear.
When returning a lump sum refund, interest is calculated by applying the interest rate on a one-year maturity term deposit from the month in which the lump sum refund is received to the month before the month in which the return is made.
If you return the lump sum, you can extend your national pension subscription period.
You can receive a relatively high income replacement rate for the insurance premiums you have paid.
From 1988, when the national pension was first introduced, to 1998, an income replacement rate of 70% was applied. However, the replacement rate was lowered to 60% in 1999, and again to 50% in 2008.
Afterwards, the income replacement rate will be lowered by 0.5% every year to 40% by 2028, and will be maintained at 40% thereafter. As of 2022, the income replacement rate is 43.0%.
You can return the lump sum amount at any time during your National Pension subscription period.
The return fee can be paid in full at once, or if the amount is large, it can be paid in installments.
If the previous payment period was less than 1 year, you can pay it in 3 installments, if it was 2 to 5 years, you can pay it in 12 installments, and if it was 5 years or more, you can pay it in 24 installments.
The age at which a lump sum refund can be received has been raised to 61 for those born between 1953 and 1956, 62 for those born between 1957 and 1960, 63 for those born between 1961 and 1964, 64 for those born between 1965 and 1968, and 65 for those born after 1969. ,
After turning 60, even before reaching the relevant payment age
You can receive it if you wish.
The lump sum refund is received by adding the interest prescribed by Presidential Decree to the pension insurance premium paid by the person during the subscription period.
If you do not claim the lump sum refund within 5 years from the date the right to receive it arose, the statute of limitations will expire and you will not be able to receive it. After five years, the right to receive a lump sum payment expires, but if a reason for pension payment arises in the future, the pension will be paid, including the extinguished portion.
(※ After January 25, 2018, the statute of limitations for lump-sum refunds for reasons of reaching payment age has been extended to 10 years, including those for whom 5 years have not passed since reaching payment age as of January 25, 2018.)
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