An Overview of the National Pension Supervisory Committee
Pursuant to Article 5 of the National Pension Act, the National Pension Supervisory Committee (NPSC) is responsible for supervision of National Pension Insurance (including operations and finance) and review of insurance disputes. The supervisory functions are to be exercised according to the decisions of the members of the Supervisory Committee and the Dispute Review Committee.
The organizational structure and functions of the NPSC shall be defined as follows:
I. Organization Structure and Prospects
(A) Organization Structure, Prospects, and Core Values
1. Organization Structure
As set forth in Article 3 of the National Pension Act, the MOHW (Department of Social Insurance) is the central competent authority of National Pension. It is further specified in Article 4 of the same act and Article 3 of the “Regulations for Management, Utilization and Supervision of the National Pension Insurance Fund” that the operations of the Insurance is entrusted to the Bureau of Labor Insurance（BLI） which is also the insurer, and the utilization of the Fund is entrusted to the Bureau of Labor Funds（BLF）. The organization structure is illustrated below:
2. Goals and Prospects of NPSC：
(1)Goal
In line with the implementation of the National Pension Act on October 1, 2008, NPSC also began its supervisory duties at the same time under the philosophy for “Professional Supervision, Right Protection and Innovation” to actively oversee the insurance operations, review disputes as legally prescribed, and also offer advice with regard to related policies and practices to ensure sound operation and sustainable development of the National Pension system.
(2)The Prospects of NPSC are as follows：
(B) National Pension Supervisory Committee Meetings
1. Composition
According to Point 3 of the “Guidelines for Establishment of the National Pension Supervisory Committee of the Ministry of Health and Welfare”, the Supervisory Committee has 17 to 19 members. One of them shall be the chairperson, assumed by either the Political Deputy Minister or one of the following Committee members as appointed by the Minister, and also serve as the chair in meetings.
2. Organizational Functions
(1) Review of annual National Pension plans and operation reports.
Each year, the BLI is required to submit the annual National Pension plan for the following year and the general work report for the previous the year to be ratified by the Supervisory Committee Meeting before they are presented to the central competent authority for approval.
(2) Review of annual budgets and financial statements of the National Pension Insurance Fund.
According to regulations, the BLI shall submit the annual budget and financial statement of the National Pension Insurance Fund subsidiary agencies each year. NPSC reviews and makes necessary suggestions on the said annual budget and financial statement and turns them over to be reviewed and approved by the Supervisory Committee Meeting.
(3) Review of balance and utilization of the National Pension Insurance Fund.
i. The BLF is required to establish the National Pension Insurance Fund utilization plan before the beginning of each year and submit it to be reviewed and ratified by the Supervisory Committee Meeting before presenting it to the central competent authority for approval.
ii. The BLI is required to compile the data on utilization of the National Pension Insurance Fund from the BLF monthly, including the names of domestic and foreign securities invested in, the amounts, earnings, allocation of discretionary management, performance statistics, individual stocks with losses exceeding 30% and their handling, and outline of hedging measures taken for derivatives purchased to be reviewed by the Supervisory Committee Meeting before they are to be processed according to the corresponding administrative procedures.
(4) Review of National Pension regulations and suggestion based on research results for operation improvement.
The Committee shall study the laws and regulations, suggestions and comments for improvement of operations and finance, or proposals and forward-looking ideas established in accordance with the conditions in and outside the country from the MOHW(Department of Social Insurance), BLI and BLF and have them reviewed by the Supervisory Committee Meeting.
(C) National Pension Dispute Review Committee Meetings
1. Organization Members
Pursuant to Article 10 of the “Regulations for Review of National Pension Disputes”, the Committee shall recruit (appoint) 13 to 15 persons according to the following principle as members of the Dispute Review Committee. Review decisions shall be made jointly by the members.
2. Organization Functions
(1) The dispute review system is stipulated in Paragraph 2 of Article 5 of the National Pension Act. The “Regulations for Review of National Pension Disputes” have also been established according to Paragraph 3 of Article 5 of the same act to provide the criteria for review of disputes. The NPSC has acted in accordance with Article 10 of the said Regulations and organized the Dispute Review Committee. The meeting shall be convened once a month. Ad hoc meetings may be convened when necessary.
(2) The above mentioned cases to be reviewed during meetings of the Dispute Review Committee are cases in which insured persons find the amounts of National Pensions decided by the BLI unacceptable. Within 60 days after receiving the decision documents, they have to fill out the National Pension Dispute Review Application Form and submit it along with a photocopy of the original decision document and related proof to the BLI to apply for review by the NPSC. The review period is 3 months in principle but may be extended for another 3 months if necessary. Applicants finding the decisions of the Dispute Review Committee unacceptable may file petitions and administrative lawsuits according to related regulations.
(3) People with questions about National Pension dispute review are welcome to call the NPSC (02-33437138) for clarification to protect their rights and interests.
(D) Administrative Organization of this Committee：
Ⅱ. Statutory Missions of the National Pension Supervisory Committee
According to Point 2 of the “Guidelines for Establishment of the National Pension Supervisory Committee of the Ministry of Health and Welfare”, NPSC has to bear the following 8 responsibilities:
(A)Review of annual National Pension plans and operational reports.
Each year, the BLI is required to submit the annual National Pension plan for the following year and the general work report for the previous year to be ratified by the Supervisory Committee Meeting before they are presented to the central competent authority for approval.
(B)Inspection and evaluation of National Pension operations.
On-site spot checks of payment and coverage-related operations and general affairs pertaining to the National Pension Insurance handled by the BLI.
(C)Review of annual budgets and financial statements of the National Pension Insurance Fund.
Review of the budget of subordinate units of the National Pension Insurance Fund for the following year and financial statements for the previous year compiled and submitted by the BLI at the beginning of each year.
(D)Supervision of the balance, custody and utilization of the National Pension Insurance Fund.
Monthly reviews of revenues and expenditures, utilization conditions, and accumulated amounts of the National Pension Insurance Fund reported by the Bureau of Labor Insurance; convening of quarterly meetings of the risk control implementation task force for the collection of domestic and international economic intelligence and identification of risk factors as well as formulation of issues for discussion in meetings attended by invited experts, scholars, and government agency representatives ; annual review of asset allocation and investment utilization plans for the National Pension Insurance Fund as well as key proposals pertaining to arrears, charge-offs, and bad debt records.
(E)Inspection and evaluation of National Pension finance and accounts.
Annual audits of investment utilization and management operations pertaining to the National Pension Insurance Fund including legal compliance, audit execution, and risk control practices to guarantee the safety of the Fund.
(F) Review of National Pension disputes.
Where disputes arise out of decision of the Bureau of Labor Insurance, the insured, the beneficiary, persons applying for National Pension payments, National Pension stakeholders, or the spouse of the insured with a joint payment liability shall file applications for review with the National Pension Supervisory Committee within 60 days after receipt of the decision documents. Where applicants disagree with the review decision, they may file petitions and administrative lawsuits pursuant to relevant laws.
(G)Review of National Pension regulations and suggestions of research results for operation improvements.
The Committee shall study the laws and regulations, suggestions and comments for improvement of operations and finance, or proposals and forward-looking ideas established in accordance with the conditions in and outside the country from the MOHW (Department of Social Insurance), BLI and BLF and have them reviewed by the Supervisory Committee Meeting.
(H)Other affairs related to National Pension operations.
Other items related to the requirements of National Pension supervision operations in addition to the aforementioned affairs.