How Pension Benefits Work

The National Pension (Basic Pension) and Other Pension Benefits under the Private School Pension System

The Private School Mutual Pension system is three-tiered: The National Pension (Tier 1), a public pension system for all the people of Japan; the Employees' Pension Insurance, a pension plan for employees (Tier 2); and the Retirement Pension, etc. (Tier 3), which are unique to our mutual aid system and provided in addition to the two tiers.

The amount of the National Pension (Tier 1) is determined based on the length of your enrollment and is paid as a basic pension by the Japan Pension Service.

The amount of the Employees' Pension Insurance (Tier 2) is determined proportionate to the length of your enrollment and the total amount of your remunerations.

The Retirement, etc. Pension (Tier 3) is a newly established funding pension replacing the occupational portion of the mutual aid pension (former Tier 3) that has been abolished by integrating employee pension plans. This new Tier 3 includes pension plans for private sector employees that are sponsored by their employers, such as defined-benefit corporate pension plans.

Pension Benefits for the Pension Contribution Period before/after October 2015

As a result of the integration of employee pension plans, the pension contribution period under the Private School Mutual Pension system is now regarded as the insured period under the Employees’ Pension Insurance and PMAC, an insurer, has become the institution responsible for providing Employees’ Pension Insurance benefits for the period concerned.

Consequently, the pension benefits claimable after the integration (from October 2015 onward) will become the Employees’ Pension benefits, the amount of which will be the remuneration-based portion (Tier 2) in principle.

Though the occupational portion (Tier 3), which is unique to the Mutual Aid Pension system, has been abolished, since the insured period before the integration (until September 2015) is defined as including the occupational portion (Tier 3), transitional additional benefits for the occupational portion (Mutual Aid Pension) will be paid separately from the Employees’ Pension as a transitional measure.

In addition, for the insured period on and after October 2015, the Retirement, etc. Pension benefits, etc. have been established as the new Tier 3 pension.

The Mutual Aid Pension benefits eligible for the period before the integration will be paid as before in principle, and PMAC will remain responsible for determining and paying them for the insured period under the Private School Mutual Pension system after the integration.

Pension Benefits Payable for the Period until September 30, 2015

PMAC will determine and pay pension benefits as the Mutual Aid Pension as was the case before the integration.

Pension Benefits Payable for the Period from October 1, 2015

PMAC will determine and pay pension benefits as transitional additional benefits for the occupational portion (the Mutual Aid Pension).

For the insured period from October 2015 onward, PMAC will determine and pay the Retirement Pension, etc. (New Tier 3) as well as the Employees’ Pension.