5. My coverage under the labor insurance program has been interrupted for a few days in June 2011. Why should I pay the National Pension Insurance premium for a full month? I have been paying the premium for labor insurance. Now I am also required to pay the premium for National Pension Insurance. Is this not a duplicate charge?
- The National Pension Act has been amended and, with effect from January 1, 2012, the premium for the program shall be charged on a daily basis. Before December 31, 2011, however, the premium for National Pension Insurance was calculated on a monthly basis. People who became eligible for enrollment in the National Pension Insurance program within the period of June 2011, therefore, would be required to pay the premium on a full-month basis for the specific month. Your period of insurance, as a result, will be calculated as a full month as long as you have paid the premium.
- The premium for the Labor Insurance program is calculated on a “daily” basis. The period of insurance under the Labor Insurance program, therefore, is computed on a daily basis as well. The premium for the National Pension Insurance program, on the other hand, was calculated on a monthly basis. The period of insurance for this program, certainly, would be calculated on a monthly basis. The premium you paid for the Labor Insurance program and the National Pension Insurance program will be accumulated, respectively, on a daily and monthly basis to record your period of insurance under the two systems. When you become eligible for the old-age benefit under the Labor Insurance program and the old-age pension benefit under the National Pension Insurance program, you may apply for both pension payments respectively. The premium and period of insurance were not accumulated in vain.