Request concerning Defined-Contribution Pension Plans

JBA drafted a request to improve defined-contribution pension plans in the Business Committee held on July 14, and submitted it to the Ministry of Health, Labour and Welfare on July 18.

The paper lists nine specific requests. The taxation requests call for (1) Abolishing the special corporate tax on provisions for retirement pension plans, and (2) Raising the contribution limit and permitting matching contributions. The system improvement requests include (3) Expanding eligible subscribers, (4) Loosening requirements for one time payments when a subscriber quits, (5) Abolishing the rule prohibiting concurrent posts, (6) Relaxing the conditions on excluding investment products, and (7) Relaxing the conditions on fund transfers from consolidated or combined employees' pension funds to corporate pension plans.