Pension Assets of 1.12 M. People Left Unmanaged in Japan
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Tokyo, Nov. 2 (Jiji Press)--Funds of some 1.12 million individuals under corporate-type defined contribution pension programs in Japan were left unmanaged as of the end of September, National Pension Fund Association officials said Wednesday.
This is because these individuals did not take necessary procedures when they changed or quit jobs. The problem may lead to a decrease in the amount of pension assets they will be collecting in the future.
In a corporate-type defined contribution pension program, companies pay the premiums and employees manage the funds.
It is necessary for people who change or quit jobs to take procedures to transfer the funds to a similar program offered by the companies where they start working or to the iDeCo defined-contribution private pension program for individuals.
If they fail to take the procedures within six months after changing or leaving jobs, their funds are automatically transferred to the National Pension Fund Association.
[Copyright The Jiji Press, Ltd.]