This Act is stipulated to ensure the basic economic safety for citizens not being able to be adequately covered by related social insurances when they become old, maternity and / or mentally / physically disability as well as the stability of the lives of their surviving family.

The Insurance contingencies of the National Pension Insurance (hereinafter referred to as “the Insurance”) include old age, maternity, mentally / physically disability and death.
Payments to the insured people during the validation of the insurance when contingencies happen include old age pension payment, maternity payment, mentally / physically disability pension payment, death payment and surviving family pension payment.

Competent authorities of this act include: central social welfare competent authorities for the central government; municipal city government for the municipality; county government for the county.

Operations of the Insurance will be carried out by the Bureau of Labor Insurance which is entrusted by the competent authorities in the central government. The Bureau of Labor Insurance will also act as the insurer.

In order to supervise operations of the Insurance and examine the insurance issues by central competent authority, there will be a committee comprised of representatives from the related government institutions, the insured persons and experts with each party basically occupies 1/3 of the seats. Supervision will be conducted under the collegiate system of this committee.
The insured citizen and the beneficiary should file for examination within 60 days, starting from the next day of receiving notifying documents, if they have arguments about cases previously approved by the insurer. According to the related laws, petitions and administrative litigations can then be filed if they disagree with the examination result.
The examination boundary of the issues stipulated in the previous paragraph, the deadline and process to apply for examination or modification, the examination operation and rules on other related issues will all be stipulated by the competent authorities in the central government.

Definition of the terms in this Act includes:
1. Related social insurances meaning civil servant and teacher insurance (original civil servant insurance and original teacher and staff insurance for private schools), labor insurance , military personnel insurance and farmer’s health insurance.
2. Old age pension payment from related social insurance meaning pension payment from civil servant and teacher insurance (including original civil servant insurance pension payment and original private school teacher and staff insurance pension payment), old age benefit of the labor insurance and discharge payment from military personnel insurance.
3. Social welfare allowance meaning living allowance for low-income senior citizens, living allowance for middle or low income senior citizens, living allowance for mentally/physically challenged citizens, senior farmer welfare allowance and living allowance for veterans.
4. Period of insurance meaning the total period of the insured citizen’s paying for the premium according to the Act; the actual paying period will be calculated proportionately on the basis of twelve months per year if the paying period is less than one year, and it is calculated proportionally on the basis of 30 days per month if the period of paying is less than a full month.
5. Beneficiary people legally qualified for filing for insurance payment when the insured citizen dies.
6. Imprisonment meaning personal freedom was deprived of or limited to due to the execution of sentences of detention, custody, observatory rehabilitation, compulsory rehabilitation, rehabilitative measures or correctional measures in specific locations. But people under the execution of protective correction were wanted but not yet arrested, or under medication after being bailed out, or currently under probation are not included.