The Diet last week passed a bill, effective in April, to abolish the controversial pension system for members of the national legislature. Proposed by the ruling coalition of the Liberal Democratic Party and New Komeito, it is a halfhearted measure because it preserves, although in a reduced form, special privileges for veteran and former lawmakers.
During the ordinary Diet session in 2004, it came to light that some Diet members had not joined or failed to pay premiums into the national pension system (kokumin nenkin), which is primarily for self-employed people. Instead, they had joined an exclusive pension plan for lawmakers. Because the government at the time was planning to raise premium payments while reducing benefits of the kokumin nenkin, the public turned a critical eye toward the Diet members' pension system. They regarded it as a special perk.
Under that system, a person who has served as a Diet member for 10 years or more and has continued to pay the monthly premium of 103,000 yen over the period acquires the right to start receiving monthly benefits at 65, amounting to about 340,000 yen for a 10-year Diet member and 410,000 yen for a 20-year member. The problem is that only about 30 percent of the benefits comes from the beneficiary's accumulated premiums; the rest is funded by tax money. Recipients can also receive other types of public pensions if they have joined the plans.