A pension for their thoughts
(From The Japan Times Feb. 11 issue)

議員年金廃止法が成立

    During the ordinary Diet session in 2004, it came to light that some Diet members had not joined or failed to pay premiums into the national pension system (kokumin nenkin), which is primarily for self-employed people. Instead, they had joined an exclusive pension plan for lawmakers. Because the government at the time was planning to raise premium payments while reducing benefits of the kokumin nenkin, the public turned a critical eye toward the Diet members' pension system. They regarded it as a special perk.

    Under that system, a person who has served as a Diet member for 10 years or more and has continued to pay the monthly premium of ¥103,000 during the period, acquires the right to receive monthly benefits at 65 amounting to about ¥340,000 for a 10-year Diet member and ¥410,000 for a 20-year member. The problem is that only about 30 percent of the benefits come from the beneficiary's accumulated premiums; the rest is funded by tax money. Recipients can receive other types of public pensions if they have joined the plans.

    By contrast, participants in the kokumin nenkin system and the pension system for salaried workers (kosei nenkin) must pay monthly premiums for 25 years to be eligible for a pension. Workers in the kosei nenkin system receive only about ¥100,000 a month after paying premiums for 40 years. If the basic pension for nonworking wives is added, monthly benefits total about ¥230,000. The amounts for kokumin nenkin participants are even lower. If they pay the monthly premium of about ¥13,600 for 40 years, their monthly pension is about ¥66,000.

    If it was intended to abolish the special privileges for Diet members, the Diet-passed bill is a sham. That's because Diet members who have served for at least 10 years have two options — receive a lump-sum payment of their accumulated premiums, reduced by 20 percent, or go on to collect a monthly pension reduced by 15 percent. Incumbents with less than 10 years of service will be offered a lump-sum payment of their accumulated premiums, again reduced by 20 percent.

    Former Diet members will continue to receive pension benefits but at reductions of 4 percent to 10 percent. If their annual income (pension plus other sources of income) tops ¥7 million, half of the amount above ¥7 million will be deducted from their pension payments.

    Even with these reductions, the benefits seem rather thick. Since Diet members will stop paying premiums into their exclusive pension system as of April 1, the government will have to dedicate more tax money temporarily toward paying their pension benefits.

    One big problem with the new law is that an eligible Diet member who chooses to draw a monthly pension will continue to receive it (albeit at 15 percent less than under the current system) for up to 40 or 50 years. This in effect is a continuation, not a termination, of the Diet members' pension system. After only a few years, the amount of money they receive in monthly pension payments will exceed the amount they would have received in a lump-sum payout.

    The opposition Democratic Party of Japan had proposed that Diet members receive a lump-sum payment totaling half of the premiums they have paid in so far and that former Diet members have their pension benefits cut by 30 percent. This proposal, which would have been more acceptable to the public, was rejected by the Lower House.

    Prime Minister Junichiro Koizumi at one point called for a complete abolition of the special pension for Diet members. His about-face came after he was told that such an abolition would infringe on current and retired Diet members' property rights. He could face public criticism over that.

    Those DPJ lawmakers who opt for a monthly pension instead of the lump-sum payout can count on subjecting themselves and their party to criticism all the more in light of the party's more stringent proposal compared with the governing coalition's.

    Efforts must be made to work out a feasible measure that encourages motivated citizens to stad for the Diet. But the new pension arrangement in favor of Diet members should be replaced as soon as possible with a rational system that can be used by retired and current Diet members.

The Japan Times Weekly
Feb. 18, 2006
(C) All rights reserved

    04年の通常国会で、国会議員の一部に国民年金保険料の不払い者、未納者がいたことが判明したが、議員年金制度には全員が加入していた。当時、政府は国民年金保険料を引き上げ、給付は引き下げようとしていたので、議員年金制度は国民の批判の的となった。

    議員年金制度では、在職年数10年以上で月額納付金10万3000円を支払った議員が65歳で受給資格を得る。年金受給額は、10年在職者で月額34万円、20年在職者で41万円だ。問題は議員年金の国庫負担率が70%にものぼることだ。

    一方、国民年金、厚生年金の加入者は受給資格を得るために最低25年間は保険料を払わねばならない。厚生年金加入者の夫婦合わせての月額受給額は、40年間保険料を納付しても約23万円。国民年金ではわずか6万6000円ほどだ。

    議員年金廃止法では、受給資格者の現議員は、納付済み額から20%を削減した額を一括して受け取るか、現行より15%削減した年金の受け取りを選択できる。10年以下の在職議員も、納付済み額から20%を削減した額を一括して受け取れる。元議員は、現行より4%〜10%削減した年金を受け取ることができる。

    新法の大きな問題点は、受給資格者が現行額から15%削減した年金を40年、50年にわたって受給できるところにある。これでは議員年金の廃止でなく、継続である。小泉首相は、議員年金の完全廃止を主張していたが、受給権者の財産権を侵害するとの反対の声に、主張を取り下げた。

    成立した議員年金廃止法は問題があり、 現議員、元議員に適用される合理的な制度に変更すべきである。