Structure of Public Pension System

Japanese public pension system can be divided mainly into “Basic Pension System” and “Employee Pension System.”(refer to the illustration below)"

The Basic Pension System (National Pension) is an universal system for all residents of Japan to which self-employed, salaried employees of private companies, civil servants, and private school personnel as well as dependent spouses of these workers participate.

Therefore, participants in employee pension system (Mutual Aid Pension and Employees' Pension) also participate in the Basic Pension System (National Pension), benefiting from these two systems at the same time.

As a result of the enactment of the law for consolidation of employee pension systems on October 1 2015, Employees' Pension Insurance that has been applied to employees of private companies is now also applied to private school personnel and civil servants, etc.

Structure after consolidation of employee pension systems

Starting from October 1st, 2015, the employee pension system, which was formerly divided separately into Employees’ Pension Insurance and Mutual Aid Pension (Mutual Aid Association of National Government Employees, of Local Government Employees and Mutual Aid for Private School Personnel (PMAC)), was consolidated into the Employee’s Pension Insurance. The Basic Pension System (National Pension) is now positioned as the 1st tier and salaried employees (including private school personnel and civil servants) also participate in the Employees' Pension Insurance, which is positioned as the 2nd tier. (refer to the illustration below)
Insured types of Employees' Pension Insurance after the consolidation are as follows:

Insured types of Employees' Pension Insurance after the consolidation

• Employees of private companies: Category 1 Employees' Pension Insured Persons
• National government employees: Category 2 Employees' Pension Insured Persons
• Local government employees: Category 3 Employees' Pension Insured Persons
• Private school personnel: Category 4 Employees' Pension Insured Persons