(1) The types of benefits under a defined benefit plan shall be either an annuity or a lump-sum benefit, and the eligibility requirements of recipients shall be as follows:
1. Annuities shall be paid to persons aged 55 or over, whose contribution period exceeds 10 years. In such cases, the payment period thereof shall exceed five years;
2. Lump-sum benefits shall be paid to participants who fail to meet the eligibility requirements to receive annuities or wish to receive lump-sum benefits.
(2) An employer shall ensure that a retirement pension trustee pays all the benefits that it is obligated to pay within the limit of the reserve (in cases of bankruptcy of a business or other cases prescribed by Presidential Decree, the amount corresponding to the rate of the reserve to the amount prescribed in Article 16 (1) 2) within 14 days after a ground for the payment occurs as prescribed in paragraph (1), such as retirement of the participant: Provided, That in extraordinary circumstances, such as where the sale of the employed assets that have been invested with the reserve under a retirement pension plan is not made within a short period of time, the payment date may be extended by agreement among the employer, participants, and the retirement pension trustee.
(3) When the amount of benefits paid by a retirement pension trustee under paragraph (2) falls short of the amount of benefits prescribed in Article 15, the employer shall pay the deficiency to the relevant employee within 14 days after a ground for the payment of benefits occurs. In such cases, the payment date may be extended by agreement between the parties.
(4) The benefits under paragraph (2) or (3) shall be paid by transfer to the account of an individual retirement pension plan, etc. designated by each participant: Provided, That this shall not apply where any grounds prescribed by Presidential Decree exist, such as where a participant receives benefits after retirement at the age of 55 or over. <Amended on Apr. 13, 2021>
(5) Where a participant fails to designate an account of an individual retirement pension plan, etc. under paragraph (4), the benefits shall be transferred to an account of an individual retirement pension plan in the name of the participant. In such cases, the participant shall be deemed to have established an individual retirement pension plan at the relevant retirement pension trustee. <Amended on Apr. 13, 2021>