National Pension Retroactive Contributions Possible for Military Service Period... Special Benefits Within '119-Month Limit'

Men who have completed military service can utilize the 'Military Service Retroactive Contributions' system to increase their National Pension coverage period. While the general National Pension Retroactive Contribution System has several restrictions, exceptional special benefits are applied to military service periods.

Three Special Provisions of 'Military Service Retroactive Contributions' Differing from General Retroactive Contributions

The National Pension Retroactive Contribution System is a system where individuals pay for periods in the past when they were unable to pay insurance premiums (payment exception periods) due to reasons such as unemployment, business closure, or military service, thereby increasing their coverage period. According to a Pension Doctor video, while this system was established to support low-income citizens, there are criticisms that it has become more advantageous for wealthy individuals who can pay a large sum of money at once. In fact, cases where foreigners use this system to receive significant pensions have led to calls for system improvements.

General retroactive contributions are only possible for periods after the system's implementation in April 1999, and there is a restriction that it must be a period after joining the National Pension. Furthermore, due to an amendment to the law by the National Assembly of the Republic of Korea at the end of 2020, the possible retroactive contribution period is limited to a maximum of 119 months. In other words, regardless of whether the unpaid period in the past was 10 years or 30 years, it is only possible for a maximum of 119 months (less than 10 years).

However, in the case of men who have completed military service, they have more favorable conditions than general retroactive contributions in the following three aspects.

First, it is possible for those who served before the system's implementation date. While general retroactive contributions are only possible for periods after April 1999, for Military Service Retroactive Contributions, if one completed military service after January 1, 1988, when the National Pension system was implemented, they can apply for retroactive contributions for that period. Second, the service period before joining the National Pension is also included. Even if it is a military service period performed before joining the National Pension (e.g., military service in one's 20s), if the service was after 1988, it can be recognized as a coverage period through retroactive contributions. Third, it can be applied redundantly with the 'Military Service Credit'. Those who served after 2008 can receive the Military Service Credit, which adds 6 to 12 months to the coverage period, and separately, the pension amount can be further increased through retroactive contributions for the entire military service period.

Excluding ROTC and Women... Limited to 'Enlisted Service' Targets

Not all military service members are eligible. The video clearly distinguishes the scope of the targets. First, those from ROTC (Reserve Officers' Training Corps) who served as officers are excluded from the target. This is because officers are subject to the Military Pension, not the National Pension. Therefore, this retroactive contribution system applies only to the period served as an enlisted soldier. In terms of gender, since the enlisted service members are limited to men, essentially only men can receive the benefit.

There are no restrictions based on the type of service. Not only active-duty personnel but also those who served in the defense service can make retroactive contributions for their military service period. The speaker in the video mentioned their experience of increasing their pension by making retroactive contributions for the entire military service period, stating they were a sergeant who completed full-term service in the Republic of Korea Army.

Calculation Method of Payment Amount and Points to Note

The retroactive contribution premium is not a method of paying the exact amount that was not paid in the past. According to the video, one pays an amount calculated by multiplying the 'currently paying monthly premium' by the 'past military service period'.

The point to be careful about here is the period limit. Just like general retroactive contributions, the total possible retroactive contribution period, including the military service period, cannot exceed 119 months. For example, even if the past payment exception period is 119 months and the military service period is 30 months, one must keep in mind that it is not possible to make retroactive contributions for a total of 149 months, but only up to a total of 119 months.

The timing for applying for retroactive contributions is possible at any time during the National Pension coverage period. Even after the age of 60, one can apply until the month before receiving the old-age pension through voluntary continued coverage. However, the video explained that depending on future pension plans, premiums may rise, so it may be advantageous to apply as early as possible.