Jul.20.2005

Japanese Bankers Association

JBA Submits Request on Defined-Contribution Pension Plans

JBA drafted a request to improve defined-contribution plans at the Business Committee held on July 15, and submitted it to the Pension Bureau of the Ministry of Health, Labour and Welfare on July 20.The paper lists ten 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 call for (1) Expanding eligible subscribers, (2) Loosening requirements for one time payments when a subscriber quits, (3) Abolishing the rule prohibiting concurrent posts, (4) Allowing banks to explain outlines of the national pension foundation system, and (5) Relaxing the conditions on excluding products being invested.