Drastic review crucial
- Public confidence in pension system shaken anew by latest payment failure
Sep 19, 2017-A massive failure to pay pension benefits has come to light. The Japan Pension Service bears a heavy responsibility for a failure that has undermined confidence in the public pension system. The Health, Labor and Welfare Ministry has announced it failed to pay add-on benefits, which are added to basic pensions if certain conditions are met, to more than 100,000 pensioners. The nonpayments totaled ¥59.8 billion. The payment failure began in 1991 when the add-on benefits system was introduced. Those affected have been mainly the spouses of former government employees who are recipients of mutual aid pension benefits. Due to a lack of communication between mutual aid associations and the JPS, there have been many cases in which couples’ pension information was not shared between the two organizations. The latest failure was revealed in its entirety when the JPS conducted wholesale checks on records dating to the time when the add-on system was introduced. It is essential to investigate whether there is any institutional factor behind the failures, and not treat them as just mistakes.
Published: 19-09-2017 07:50