Eight companies belonging to the Sumitomo and Mitsui groups announced Thursday that they will jointly set up a company in September to handle the 401(k) type of pension plan expected to be introduced next year.
The company will be established by Sumitomo Life Insurance Co., Sumitomo Bank, Sumitomo Trust & Banking Co. and Sumitomo Marine & Fire Insurance Co. from the Sumitomo group, and Mitsui Mutual Life Insurance Co., Sakura Bank, Chuo Mitsui Trust & Banking Co. and Mitsui Marine & Fire Insurance Co. from the Mitsui group.
The new firm, Japan Pension Navigator Co., will be capitalized at 2.5 billion yen and begin operations in October with a staff of about 50.
Sumitomo Life Insurance and Mitsui Mutual Life will each have a 25 percent stake in the company, while Sumitomo Bank and Sakura Bank will own 15 percent each. The remaining four companies will each take 5 percent.
The company will provide information and investment advice to customers on new pension schemes expected to be introduced in Japan next year. Under the schemes, modeled after the 401(k) programs in the United States, contributions are defined but benefits to be paid after retirement hinge on investment returns.