[Breaking] Supreme Court Plenary Changes Precedent on Pension Service Compensation Claim Subrogation Scope: "Offset After Deducting Service Payment Amount"

'From the "Offset Then Deduction" Theory to the "Deduction Then Offset" Theory'

The National Pension Service (NPS) has been ruled by the Supreme Court en banc that when it subrogates the victim's right to claim damages after paying pension benefits to a victim of illegal acts, the scope of such subrogation is limited to the amount corresponding to the perpetrator's liability ratio within the pension benefits paid by the NPS.

On the 20th, the Supreme Court en banc (Chief Justice Cho Hee-dae, Presiding Justice Eom Sang-pil) dismissed the appeal filed by the NPS, which participated in the lawsuit as a successor intervener in the appeal concerning a case where the NPS paid disability pension benefits to a victim of a traffic accident and then subrogated the victim's right to claim damages against the perpetrator, raising the issue of the scope of such subrogation. The court affirmed the lower court's ruling based on the so-called 'deduction before set-off theory.'

According to the ruling by the Supreme Court en banc, the previous Supreme Court precedent, which held under the 'set-off before deduction theory' that "when the National Pension Service subrogates the victim's right to claim damages against the perpetrator, the scope of subrogation covers the entire amount of pension benefits within the scope of the right to claim damages," has been changed.

This content was produced with the assistance of AI translation services.