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National News

Agency in pension premium waiver scandal

The Social Insurance Agency said May 29 that their local offices have inappropriately waived pension premium payments for a total of around 114,000 people in 26 of the nation's 47 prefectures.

This is far more than the 77,000 people in 13 prefectures it revealed May 27.

"Inappropriate" waivers are waivers made by agency staff without any action or request by policyholders themselves.

They are also waivers made by agency staff with or without any record of proof that policyholders wanted the waivers, and those made by agency staff before applications were submitted.

The national pension law requires policyholders to submit applications for waivers.

Critics say premium payment waivers were offered as a way to raise the percentage of those actually paying into the national pension system.

With a large number of people refusing to pay premiums, the agency has tried to raise the percentage of those paying into the system.

The agency said it will examine around 2.7 million cases of premium payment waivers and other administrative procedures in fiscal 2005.

The scandal will affect lawmakers' decisions on a bill to create a new pension services organization to replace the agency, which had been criticized earlier for its lax expense management.(Kyodo)


Shukan ST: June 9, 2006

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