Enforcement Rules of the Labor Pension Act Article 21-4

Where a worker continues to work after the employer and the worker have mutually agreed to settle the worker’s pension, the employer shall, upon lawful termination of the labor contract, calculate and pay the pension accrued for the worker’s subsequent years of service based on the worker’s average wage at the time of termination, in accordance with the Labor Standards Act and other applicable laws and regulations. The total number of pension base units, including those previously settled, shall not exceed 45; provided, however, that where the employer and the worker have agreed upon terms more favorable than those prescribed by law, such agreement shall prevail.Where a worker continues to work after the employer and the worker have mutually agreed to settle the worker’s pension as described in the preceding paragraph, the parties may, during the continuing period of a labor contract, mutually agree to settle annually, in accordance with the preceding paragraph, the pension accrued for such subsequent years of service. The full amount of each such settlement shall be transferred to the worker’s individual labor pension account maintained by the Bureau of Labor Insurance in accordance with Paragraph 5 of the preceding article. Paragraph 2 of Article 12 shall apply mutatis mutandis to the calculation of the years of service subject to such annual settlements.