Introduction

To improve the quality of life of farmers and strengthen their production skills, the government should enact protective laws and implement relevant policies. The farmers' health insurance program, however, does not cover any old-age or retirement benefits. The old-age protection for farmers, therefore, remains insufficient. The government, therefore, has enacted the Farmer Pension Act (hereinafter referred to as "The Act") based on the existing labor pension system and other related programs. Farmers' individual pension accounts are established. The government and the farmers are enabled to make payments to the farmer pension funds, which will serve as an old-age support for the farmers. In future, elderly farmers will be financially secured simultaneously by the old-age farmers' welfare allowance and the farmer pension system. They will, on this basis, enjoy an adequate standard of living as other retirees.

The Farmer Pension Act was promulgated by Presidential Order on June 10, 2020, and took effect on January 1, 2021. After the Act takes effect, insured persons under farmer health insurance who are under the age of 65 and have not yet received Old-Age Benefits under relevant social insurance programs may voluntarily apply to the basic-level Farmers' Association with which they are insured under farmer health insurance to make contributions to the Farmer Pension. In addition, Article 3-1 was added to the Farmer Pension Act on December 22, 2021, relaxing the requirements so that insured persons who have received Military Insurance Discharge Benefits and participate in farmer health insurance pursuant to Article 5-1 of the Farmers' Health Insurance Act may make Farmer Pension contributions, without being barred by the requirement that they must not have received Old-Age Benefits under relevant social insurance programs. The amendment took effect on January 25, 2022.

To increase farmers’ willingness to participate in the Farmer Pension system, encourage farmers to save independently for retirement, take into account equity in the level of retirement protection across different occupations, and reduce farmers’ burden, the Farmer Pension Act was amended and promulgated on February 11, 2026. While keeping the total amount of joint contributions unchanged, the original arrangement under which farmers and the government bore equal amounts was changed to 40% borne by farmers and 60% borne by the government. The amendment applied retroactively from January 1, 2026. Eligibility was also expanded to include persons actually engaged in agricultural work who participate in Labor Insurance or National Pension Insurance and for whom no employer makes Labor Pension contributions in accordance with the law, enabling them to engage in farming with greater stability and peace of mind. This amendment will take effect on August 1, 2026.

The amounts jointly contributed by farmers and the government are deposited into farmers’ individual pension savings accounts. Investment returns are allocated to the individual accounts each year, with guaranteed return protection. Farmers may claim monthly payments once they reach the age of 65.