|
||||||
|
|
|
|
|
|
|
|
|
 |
 |
 |
 |
Some related articles : |
 |
Japanese Companies Move to Adopt 401(k)-Type Plans By:
Unknown Author
TOKYO -- The number of companies adopting a defined-contribution pension system, in which the amount of benefits varies depending on investment performance, is likely to exceed 700 by the end of fiscal 2002, a survey by The Nihon Keizai Shimbun shows. The main reason for the rapid increase in firms' favoring the pension scheme is that the burdens on companies from their existing defined-benefit pension systems are deepening, due largely to the prolonged anemic stock market, which caused heavy investment losses during fiscal 2001. By the end of June, a total of 121 firms obtained Welfare and Labor Ministry approval for introducing the 401(k)-type pension system. Since July, 183 more firms have decided to adopt the system by the end of the current fiscal year, according to a Nikkei survey that covered 21 big financial groups providing management on defined-contribution pension investments, such as Nippon Life Insurance Co., Tokio Fire & Marine Insurance Co., the Nomura Securities Co. group and the Mizuho Financial Group. Many more companies are now making final preparations to introduce the pension system, making it certain that the total number of firms with a 401(k) plan will exceed 700 by the end of March 2003. Defined-contribution pensions do not require companies to cover losses on their pension investments, thus prompting many -- not only small to midsize firms but big corporations -- to switch to the new pension system. All Nippon Airways Co., for example, is now negotiating with its union to implement such a pension system from next April. Kao Corp. and Sompo Japan Insurance Inc. are also considering adopting such schemes. Other companies likely to adopt the pension include the Japanese units of major U.S. and European firms, which already have such pension schemes in their home countries, and midsize Japanese firms that currently have a tax-qualified pension system, a scheme due to be abolished within 10 years. Nippon Life, which acts as the lead-manager for tax-qualified pension investments for over 10,000 corporate clients, expects to receive orders to manage defined-contribution schemes from 200 firms by the end of fiscal 2002, given the growing number of companies shifting to such schemes.FAIR USE NOTICE: This page contains copyrighted material the use of which has not been specifically authorized by the copyright owner. Global Action on Aging distributes this material without profit to those who have expressed a prior interest in receiving the included information for research and educational purposes. We believe this constitutes a fair use of any such copyrighted material as provided for in 17 U.S.C § 107. If you wish to use copyrighted material from this site for purposes of your own that go beyond fair use, you must obtain permission from the copyright owner.
|
