"Church Building Entrusted in Name Cannot Be Considered Income"…Court Cancels Decision Denying Pension Payment

[Court Ruling]

The court ruled that if a religious facility is registered under one's name for convenience, it should not be included in the income amount used to calculate pension payments.

The Seoul Administrative Court, Administrative Division 12 (Presiding Judge Kang Jaewon) recently ruled in favor of Mr. A (73) in a lawsuit he filed against the Mayor of Dobong-gu, Seoul, seeking cancellation of the decision that deemed him ineligible for the basic pension payment (Case No. 2024GuHap2200).

[Facts]

Mr. A applied for the basic pension in March 2024, but Dobong-gu Office excluded him from eligibility in May of the same year, stating that "real estate for religious and educational research facilities registered under Mr. A's name is included in the recognized income amount, exceeding the selection criteria." In response, Mr. A filed an administrative lawsuit seeking cancellation of the decision, arguing that although the property was effectively owned by the church, it was registered under his name for convenience.

The property in question is a four-story building located in Dobong-gu. It was registered under Mr. A's name, who had served as the head pastor since 1997, and ownership was transferred to the Presbyterian Church of Pyeongan in February 2018. A mortgage in the church's name had been established on the land and building since the past, and the church's 2004 publication, "20 Years of Pyeongan Church," clearly stated the circumstances of the property purchase and construction.

[Court's Judgment]

The court ruled in favor of Mr. A.

The court stated, "Property formed from offerings, donations, and other income from church members generally belongs to the collective ownership of the members unless there are special circumstances," and "The property in question has been used and enjoyed by the church from the time of purchase and construction until now, and there is no indication that Mr. A personally used it or earned income from it."

Furthermore, the court explained, "Although the registered name on the title was Mr. A, this was merely a nominal trust for the convenience of financial institution loans, and the actual owner is the church as recognized by related records and evidence," and "Therefore, the property cannot be included in the income amount calculation under Article 3, Paragraph 1, Subparagraph 3 of the Enforcement Decree of the Basic Pension Act."

Reporter An Jaemyung, Legal Newspaper

※This article is based on content supplied by Law Times.