The People's Conference on Social Security, established at the initiative of Prime Minister Yasuo Fukuda, has started discussions. Social security, including pension and medical services, is an issue for which the nation must find solutions to. The government should not use the conference as a cover to push a particular policy measure. The conference should present people options that clearly show how much they have to pay and what kinds of benefits they can get.

The conference is composed of 15 members, including business and labor leaders, academicians and social welfare experts. They will discuss three major themes — (1) employment and pensions, (2) medical services, nursing care and other welfare services and (3) a declining birthrate and work-life balance. The conference is expected to issue an interim report in June and a final report in autumn. One wonders how it can come up with a meaningful report in such a short time.

An important issue should be how to maintain the nation's pension system. The government plans to start using tax money to cover half of the basic portion of pensions in fiscal 2009, raising the ratio from the current one-third. It is estimated that ¥2.3 trillion will be needed annually. The government apparently hopes to raise the consumption tax rate to cover the cost. The conference should present a wider range of options, making it possible for people to weigh merits and demerits of each option. It also should discuss how to get more people to pay premiums toward the basic portion. In fiscal 2006, only 49 percent of people in the Kokumin Nenkin program were actually paying premiums.