No. 10 — March 10, 2000

 

Weekly Review

NOTES

Responding to the multiple problems experienced by Japan's public and private pension systems (see JEI Report No. 4B, January 28, 2000), the cabinet of Prime Minister Keizo Obuchi approved legislation March 3 that will introduce a defined-contribution pension system. Modeled after the popular 401(k) plans available in this country, the key points of the proposed Japanese version include:

The 401(k)-type pension legislation had a difficult gestation, with numerous disagreements among the Liberal Democratic Party and its coalition partners, the Liberal Party and the New Komeito, and between the cabinet and the bureaucracy. Observers expect the bill's trip through the Diet to be equally contentious.

The views expressed in this report are those of the author
and do not necessarily represent those of the Japan Economic Institute

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