A major feature of the Democratic Party of Japan's manifesto that helped make it the ruling party was its proposed overhaul of the social security system. One feature of the plan was to combine two types of pensions. Regular full-time employees usually pay into the kosei nenkin system if they work for a private company, or into the kyosai nenkin system if they work for a public entity. This latter group includes civil servants, whether they work for the central government or a local one, and school teachers, including instructors at private schools.
However, there is a real difference in terms of both premiums and benefits between the two systems. Though in both cases, the employee splits his contributions with his employer, the rate is less for kyosai nenkin members than it is for kosei nenkin members. Even more significant, kyosai nenkin members after retirement receive ¥20,000-a-month more in benefits than do kosei nenkin members. And that's not all. While the widows of both kosei nenkin and kyosai nenkin members can receive a special pension when they survive those members, under certain conditions other surviving family members of deceased kyosai nenkin members can also receive benefits. That does not apply to kosei nenkin members and their families.
The problem with the proposal to combine these two systems is that public servants will lose these special privileges. The kyosai nenkin system will adhere to the regulations associated with the kosei nenkin system, which is is why it hasn't been discussed much during the current Diet session. The bureaucracy, needless to say, isn't very fond of the proposal and is fighting it.
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