Gov't OKs bill to expedite payments of overdue national pension premiums
Saturday 06th March, 03:55 AM JST
The government on Friday approved a bill to expedite payments of overdue public pension premiums. The bill would enable subscribers to pay public pension premiums which have been overdue for up to 10 years, up from a maximum two years at present.
Under Japan’s public pension system, those who have paid premiums for at least 25 years are entitled to receive benefits. But the current two-year payment rule has made it difficult for those who have missed premium payments for a certain time to accumulate 25 years of contributions. The national pension scheme became obligatory in 1986, but there is no penalty for not paying premiums. This resulted in a large portion of people subject to mandatory payments failing to pay premiums.