Despite being obligated, nearly 20 percent of firms that started up in fiscal 2002 did not bother to join the national pension program for employees, meant to provide workers with retirement funds, a survey showed. 

The move leaves thousands of workers unable to contribute at their workplace to the pension plan, and could put financial strains on the already shaky system. By law, both employees and employers must pay equal payments in the program. 

However, many companies are opting out, apparently to avoid the cost of paying premiums for employees, a requirement of the national pension program for employees, or kosei nenkin, Social Insurance Agency officials said Monday. 
The agency surveyed about 96,000 new companies in fiscal 2002 and found that about 17,000, or 18 percent, had not joined the program. 

The percentage ranged from 23-32 percent from fiscal 1999 to 2001. 

"We must operate the national pension program fairly and maintain the financial health of the pension funds. So we have to reduce the number of firms that opt out," an agency official said. "It is very important."

The agency has been hesitant about forcing companies to join the program because it could push some to the brink. For this reason, it plans to set up a task force this month to devise ways to encourage participation. 

The task force plans to check all new companies that form each month, starting in fiscal 2005, to track which firms do not join the pension program. 

Companies will be requested to join the plan. If a company continues to refuse, the task force has the authority to force it to join. The task force can also order the company to pay the required premiums. 

Under the current system, the agency is also legally allowed to seize the assets of companies that have joined the pension program but are not paying their premiums. 

Because asset seizures could force delinquent companies into bankruptcy, however, the agency has yet to take such a drastic step. 
Instead, it has only strongly urged nonpayers to join. 

"We are working with the ministries and agencies concerned to learn as much as possible about why some companies refuse to join," the agency official said.