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Retirement Mutual Aid Pension Payments from the Age of 60

A member of the Private School Mutual Aid System, born before April 1, 1953 will become eligible to receive Retirement Mutual Aid Pensions on turning 60 years old, and will receive Old-age Basic Pension payments from the National Pension Plan, and Retirement Mutual Aid Pension payments from the Private School Mutual Aid System from the age of 65. Please note that the amount of Retirement Mutual Aid pension payments awarded to a member between the ages of 60 and 64 will vary according to his/her date of birth.

Note: The actual pension payment may be suspended, depending on whether any payments were received during active service, or another type of pension payments are being received, etc. (refer to here).

Example of a member born on April 2, 1949 and later:

Conditions for Qualification

Members satisfying the following conditions will be paid from the month following their 60th birthday until they turn 65.

1. The member has completed the required eligibility period (refer to here).
2. The member has been enrolled in the Private School Mutual Aid System for more than one year.
3. The member has reached the age of 60.

Note: Members whose period of enrollment in the Private School Mutual Aid System is less than one year, will become eligible after they have completed one year, or when they turn 65.

Retirement Mutual Aid Pension awarded to persons under 65 years old

The Retirement Mutual Aid Pension, which is paid to the individuals under age 65, consists of Separate Payment that correlates to the individual’s income and Special Payment of Retirement Mutual Aid Pension whose payment is a fixed amount and does not correlate to the individual’s income.
The Special Payment of Retirement Mutual Aid Pension is paid to those who were born on April 1, 1941 and earlier, starting at the age 60. For those who were born between April 2, 1941 and April 1, 1949, the Separate Payment is paid, starting at age 60. Once they reach the starting age of the Special Payment of Retirement Mutual Aid Pension, as shown in Table 1, they will receive the payment.
Those who were born between April 2, 1949 and April 1, 1953 will only receive the Separate Benefit.
Individuals with a disability higher than third grade, and those who have been enrolled in the Private School Mutual Aid System for more than 44 years, are paid the “Specially Provided Retirement Mutual Aid Pension ” when they retire at the age of 60.

• People born before April 1, 1941
  
• Those born between April 2, 1941 and April 1, 1949:
  
• Those born between April 2, 1949 and April 1, 1953:
  

Retirement Mutual Aid Pension

The Retirement Mutual Aid Pension paid to an eligible individual is made up of a number of components, each of which is calculated on the basis of a different formula.

*The Occupation-related Portion applies only to members who have been enrolled in the system for more than one year.

The calculation of the Retirement Mutual Aid Pension employs multiplying factors corresponding to the member’s date of birth.

Exceptional Standards (calculation methods prior to 2000)

1. Fixed Portion
   1,676 yen× birthday based multiplying factor × enrollment period (max. 480 months)× 0.985
   [In the case of a Special Benefit recipient]
   3,143 yen × enrollment period (max. 420 months)×0.985
2. Earnings-related Portion (sum of A and B given below)
   A:Average Monthly Standard Salary×birthday based multiplying factor (before Mar. 2003) ×enrollment period before Mar. 2003 × 1.031 × index rate
   B: Average Standard Salary ×birthday based multiplying factor (Apr. 2003 onward) ×enrollment period from Apr. 2003 onward × 1.031 × index rate
3. Occupation-related Portion (sum of A and B given below)
   A: Average Monthly Standard Salary×birthday based multiplying factor (before Mar. 2003) × enrollment period before Mar. 2003 × 1.031 × index rate
   B:Average Standard Salary×birthday based multiplying factor (Apr. 2003 onward) × enrollment period from Apr. 2003 onward ×1.031× index rate
4. Additional Pension amount
   

   Item	Amount
   Spouse	227,900yen
   When one or two children, per child	227,900yen
   When three or more children, per child	75,900yen

5. Specially Provided Additional Pension amount
   

   Date of birth range	Amount
   Apr. 2, 1934 to April 1, 1940	33,600 yen
   April 2, 1940 to April 1, 1941	67,300 yen
   April 2, 1941 to April 1, 1942	101,000 yen
   April 2, 1942 to April 1, 1943	134,600 yen
   April 2, 1943 onward	168,100 yen

6. Transitional Addition
   

Note:Maximum number of months for calculation

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Additional Pension

An additional pension is payable to an individual who has an enrollment period of 20 years or more, and who, at the time of becoming entitled to receiving either the Specially Provided Retirement Mutual Aid Pension (Fixed Portion) , or the regular Retirement Mutual Aid Pension, is responsible for supporting a spouse under the age of 65, a dependent child under the age of 18 (has not reached the first March 31st after his/her 18th birthday), or a child under 20 with a first- or second-grade disability.

“Responsible for supporting”

A member is considered responsible for the support of a spouse or child whose annual income is less than 8,500,000 yen (where income is from a salary) and less than 6,555,000 yen in the case of a self-employed person.

The member may still be considered as being responsible for the support of a spouse or child even if his/her income exceeds 8,500,000 yen, if it can be proved in writing that the income would be subject to a drastic reduction as the result of an upcoming mandatory retirement, etc., in the near future.

Consumer Price Index Rate

When as part of the revisions of the year 2000 the consumer price index should have been revised to -2.9%, in consideration of the economic conditions at the time a deferment measure was adopted and the index revised only to -1.2%. To make up for the 1.7% it has been decided to revise the index only when there is a slide in the consumer prices, but not to revise the index when there is a rise in consumer prices. The index for the year 2007 is as follows.

Enrollment period

This is the period between the time an individual attains eligibility as a member, and the day before the month he/she loses eligibility, calculated on a monthly basis.
Note that the enrollment period after the occurrence of the right to receive the Retirement Mutual Aid Pension is used as the base for calculating the Retirement Mutual Aid Pension payment as shown below.

Average Standard Salary and Average Monthly Standard Salary

Long-Term Benefits are calculated on the basis of Average Standard Salary. However, if part or all of the enrollment period is any time before April 2003, calculations for that part of the enrollment period will be based on the Average Monthly Standard Salary.

[Average Standard Salary]
This is the total amount after the reassessment of the standard salary and the standard bonus that are used as the base for calculating the enrollment period in or after April 2003, divided by the number of months in the enrollment period concerned.

[Average Monthly Standard Salary]
As a rule, this is the total amount after the reassessment of the monthly pay of the standard salary that is used as the base for calculating the enrollment period in or before March 2003, divided by the number of months in the enrollment period concerned.

Note: The method for calculating the Average Monthly Standard Salary is different for any part of the enrollment period that falls before April 1,1986.

Adjustment of pension amount

The pension amount paid to “newly determined recipients” is adjusted annually by taking into account fluctuations in take-home wages. In the case of “regular recipients,” the amount is adjusted in accordance with fluctuations in prices. More specifically, the amount is adjusted by adjusting the reassessment rate corresponding to the recipient’s date of birth on the reassessment rate chart.

Furthermore, in order to enable the plan to respond more flexibly to changes in socioeconomic conditions, such as the declining birth rate and the aging of society, a system for the automatic adjustment of benefits, called the macroeconomic slide, has also been introduced.

Note: ”Newly determined recipients” refers to recipients under the age of 65 years, and “regular recipients” refers to recipients 65 years or older. In accordance with the revisions of 2000, the pension amounts paid to a “newly determined recipient” is adjusted on the basis of a sliding scale (disposable income adjustment). According to this sliding scale it takes two years for the increase in pay to be reflected, and since, according to this system, the adjustment as a result of the increase is adopted on the basis of a three-year average, the actual change in the pension amount will be applied when the member is 67, and it will be actually reflected when he/she is 68 years old.

(Attached chart) Fixed Portions amount corresponding to the date of birth and multiplying factors for Earnings-related and Occupation-related Portions

The start of the award of each portion by date of birth

• Pensions of an individual born before April 1, 1941
  
• Pensions of an individual born between April 2, 1941 and April 1, 1949
  

*Age at which the award of Fixed Portion and Additional Pension starts (age at which the award of full amount starts)

Date of birth	Age at which the award of benefit starts
April 2, 1941 to April 1, 1943	61 years old
April 2, 1943 to April 1, 1945	62 years old
April 2, 1945 to April 1, 1947	63 years old
April 2, 1947 to April 1, 1949	64 years old

• Pensions of an individual born on or after April 2, 1949
  

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