(1) In order to secure the ability to pay benefits, an employer who has established a defined benefit plan shall reserve at the end of each business year an amount which is not less than the amount obtained by multiplying the larger of the following amounts (hereinafter referred to as "standard policy reserve") by the rate prescribed by Presidential Decree, which is not less than 60/100 (hereinafter referred to as "minimum reserve"): Provided, That where the period of service before the establishment of the retirement pension plan concerned is included in the period of contribution under Article 14 (2), the rate shall comply with the one prescribed by Presidential Decree:
1. The amount calculated by the method prescribed by Ordinance of the Ministry of Employment and Labor, which is obtained by deducting the present value of the estimated revenues accruing from contributions for the future period of service from the present value of the estimated expenses incurred in paying benefits for the contribution period until the estimated time of retirement;
2. The amount calculated by the method prescribed by Ordinance of the Ministry of Employment and Labor, using the estimated expenses incurred in paying benefits for the contribution period until the last day of the business year concerned of a person who is or was a participant.
(2) A retirement pension trustee who operates and manages a defined benefit plan shall ascertain whether the reserve calculated as prescribed by Ordinance of the Ministry of Employment and Labor exceeds the minimum reserve and shall notify the employer of the result thereof as prescribed by Presidential Decree within six months after the end of each business year: Provided, That he or she shall also inform the representatives of employees of the results of ascertainment, if said reserve falls short of the minimum reserve. <Amended on May 26, 2020>
(3) If the reserve is found to fall short of the minimum reserve prescribed by Presidential Decree as a result of ascertainment under paragraph (2), the employer shall make up for a deficiency in the reserve as prescribed by Presidential Decree.
(4) In the event that the reserve at the end of each business year is found to exceed the standard policy reserve as a result of ascertainment prescribed in paragraph (2), the exceeding portion may be offset against the contributions to be paid in the future, and where the reserve at the end of each business year exceeds 150/100 of the standard policy reserve, the exceeding portion may be refunded to the employer, if requested by the employer.