Government to Give Yearly Payment Info on Pensions

Daily Yomiuri

October 26, 2006

The government Tuesday outlined a plan to annually advise all public pension insurance plan holders aged 20 and older of the pension benefits they can expect to receive in the future.

As well as the written notice, public-run pension plan members aged 50 and older will be told their estimated monthly benefit payment, calculated on the actual premiums paid and premiums they are expected to pay until they become eligible to receive the benefit.

Meanwhile, those aged between 20 and 49 will be informed of their projected benefit payments based on premiums paid, coupled with a calculation chart designed to provide a rough idea of how much they would receive in benefits, by multiplying their annual income by the remaining contributing period until they become eligible to receive benefits.

The system will be introduced in full in fiscal 2008, but the government is planning to start the service in fiscal 2007 for some people. who will start receiving part of their pension at the age of 60, including men who will be aged 54 and older and women who will be aged 49 and older in 2007.

Prime Minister Shinzo Abe on Tuesday met Health, Labor and Welfare Minister Hakuo Yanagisawa at the Prime Minister's Office and approved the outlined plan.

The letter will include the following information:

-- The total amount of premiums paid in the past.

-- The pension amount that each member is expected to receive in the future, a figure calculated based on the total premiums paid at the time of receiving the notice.

-- When members will start receiving their pension.

The Social Insurance Agency has already started calculating the expected amount of benefits, on request, at their offices across the country over the counter for those covered by the plan aged 50 and older.