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How Pension Benefits Work
How benefits worked before the consolidation of employee pension systems
Pension benefits used to have two main branches: “salaried employees of private companies” were given Employees’ Pension and “private school personnel and government employees, etc.” were given Mutual Aid Pension, as additional benefits to the Basic Pension (refer to the illustration below).
How benefits worked after the consolidation of employee pension systems
As a result of the consolidation of employee pension systems, private school personnel and government employees are also considered insured persons of the Employees’ Pension Insurance. Therefore the pension benefits of the “2nd tier” for which the eligibility for receiving the benefits that comes into effect after October 2015 are given as Employees’ Pension. Furthermore, the pension for occupation-related portion in the Mutual Aid Pension system (previously 3rd tier pension) has been dismantled, and as a new pension, Retirement Pension Benefits (new 3rd tier pension) has been established. The premiums for Retirement Pension Benefits are required in addition to the premiums for Short Term Benefits (health insurance)and Employees’ Pension Insurance premiums (private schools version).