The number of hired workers referred to in Paragraph 1 of Article 35 of the Act shall be based on the number of workers covered by labor insurance on the first day of the month of application for implementation of the Insurance, including the total number of workers hired by the branches and subordinate units of the business entity.
Business entities approved for implementation of annuity insurance may continue the implementation when the number of their workers decreases to less than 200.

Where the total number of workers hired by a financial holding company and its subsidiaries reaches 200 or more, with the consent of the labor union of all financial holding companies in accordance with subparagraph 1, Paragraph 1 of Article 6 of the Labor Union Act, and in the absence of a labor union, with the consent of meeting between all workers and the employer, may apply for implementation of annuity insurance together.

Before inquiring workers about their willingness to participate in annuity insurance, business entities shall deliver the terms and conditions of the annuity insurance policy to the workers and explicitly advise them of the contents of the annuity insurance.

When applying for implementation of annuity insurance in accordance with Paragraph 2 of Article 35 of the Act upon agreement between the workers and employer, a business entity shall submit the following documents to the competent authority for approval:
1. Application;
2. Photocopies of employer's identification card, factory registration certificate, company registration certificate and business registration certificate;
3. Letter of consent to participate in the Insurance from the labor union; in the absence of a labor union, minutes of meeting indicating the consent between all workers and the employer;
4. Photocopy of letter of consent signed by workers choosing to participate in annuity insurance;
5. Terms and conditions of annuity insurance policy approved by the competent authority after examination and supporting documents; and
6. Other documents required by the competent authority.
The labor union's letter of consent aforementioned in subparagraph 3 is valid for two (2) years.

In any of the following situations, a business entity shall report to the competent authority for recordation:
1. Change of insurer by workers participating in annuity insurance;
2. Reduction or raise of payment rate of annuity insurance premium;
3. Matters sufficing to affect the standards for workers' pension payment; or
4. Other matters required by the competent authority.
In any of the situations referred to in the preceding Paragraph, the business entity shall submit a letter of consent signed by the workers, contents of the original annuity insurance contract and the changed annuity insurance contract.

Without the consent of workers, employers shall not change or terminate the annuity insurance contract. In the event that any employer changes or terminates the contract without said consent thus causing damage to the workers, the workers may claim for compensation against the employer.
When a business entity purchases or changes insurance in accordance with Paragraph 1 of Article 16, if the approval documents of the competent authority are not provided, the insurer shall not accept the case. If the insurer fails to comply with such requirement thus causing damage to the workers, the workers may claim for compensation against the insurer.

The competent authority shall examine and reply within 60 days from the day following the date on which it accepts the application of the business entity for implementation of annuity insurance , with a copy to the Bureau of Labor Insurance, the Ministry of Labor (hereinafter "the BLI"). This provision shall also apply to the application for change.
In connection with the application for or change of annuity insurance referred to in the preceding Paragraph, if the required documents are incomplete, rectification shall be made within a specified time limit. If no rectification is made within said time limit, the competent authority shall reject the application.
The competent authority referred to in the preceding Paragraph shall examine and reply within 30 days from the day following the date on which rectification is accepted.
In the event that any matter or document reported or submitted by a business entity is verified to be misrepresented or falsely stated, such entity shall not re-apply within 3 months after administrative sanction.

Within 15 days from approval for implementation or change of the contents of the annuity insurance, the employers shall publish the terms and conditions of the annuity insurance policy within the business entity and inform the workers.

The business entity shall, within 15 days from the date of approval for the implementation of the Insurance, submit the approval document to the insurer for processing purchase of annuity insurance.
After completion of the procedures for purchase of insurance, the annuity insurance shall become effective on the first day of the following month. This provision shall apply in the event of any changes.
Within 15 days after the insurance becomes effective, the employer shall forward terms and conditions of annuity insurance policy and insurance certificate delivered by the insurer to the workers participating in annuity insurance, and submit a list of workers participating in annuity insurance to the BLI.
New worker who chooses to participate in annuity insurance via inquiry in writing, the payable annuity insurance premium shall be calculated from the date on which he/she reports to work. The employer shall notify the insurer within 7 days from the date on which the worker reports to work, and it shall deliver the terms and conditions of annuity insurance policy and the in the insurance certificate prepared by the insurer to the worker within 15 days after execution of the contract.
The employer shall, by the end of each month, submit the insurance information of workers participating in annuity insurance for that month to the BLI; no further need is required to process cessation of contribution to the individual pension fund accounts.

Where the workers participate in annuity insurance provided by different insurers, the business entity may, with the consent of the workers participating in annuity insurance, change the insurer.

Where a business entity is extinguished due to merger/acquisition, the surviving, assigned or newly established business entity after the merger/acquisition shall continue to pay annuity insurance premium for the original workers who have participated in annuity insurance in accordance with Paragraph 1 of Article 35 of the Act.
Where the merging/acquiring business entity and the merged/acquired business entity engage different insurers, the surviving, assigned or newly established business entity after the merger/acquisition may, with the consent of the workers participating in the annuity insurance, select an insurer for annuity insurance.

Where a business entity changes the insurer with the consent of the workers, it shall give a written notice, along with a list of workers changing the insurer, to the original insurer, the new insurer and the BLI.
The change referred to in the preceding Paragraph shall become effective on the first day of the month following notification to the insurer by the business entity.
Workers who disagree to change the insurer may continue their original annuity insurance or choose to have the employer contribute to their individual pension fund accounts with the BLI