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Gov't To 'Force' Job Leavers To Join Public Pension Program
Japan Times
August 12, 2004
TOKYO - The government plans to make it compulsory for job leavers to join the public pension program from next April, the Nihon Keizai Shimbun reported Thursday.
The Ministry of Health, Labor and Welfare and the Social Insurance Agency aim to increase the number of paying policy holders to improve the finances of the pension program and reduce the number of people unable to receive pensions upon reaching eligibility, the business daily said.
Under the existing system, those who drop out of employee pension plans either by leaving or switching jobs must sign up for the public pension program on their own. They will be considered out of the program, and ineligible for future benefits if they ignore notices from the agency twice.
The Nihon Keizai said that from the next fiscal year, the agency will automatically enroll those who ignore the notices and mail them an invoice for payments to the national insurance program.
Low-income earners looking to receive future benefits still need to join the program, but will be exempt from the payment obligation, it said.
Meanwhile, the Asahi Shimbun said the Social Insurance Agency plans to encourage businesses, which are obliged to, but fail to join employee pension plans, to participate and pay premiums from this fall.
The planned compulsory participation is aimed at curbing defaults on premium payments as premium rates are scheduled to be raised annually, starting October, the Asahi said. (Kyodo News)
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