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Living areas explanation

This information is drafted as of October 15, 2012.
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 Outline of retirement benefit scheme
Concept of retirement benefit scheme
Significance of retirement benefit scheme
- 'Retirement benefit scheme' refers to a retirement allowance system prescribed in chapter Ⅱ and a retirement pension plan prescribed in chapter Ⅲ, Ⅳ and Ⅴ of the「Guarantee of Workers' Retirement Benefits Act」([Subparagraph 6, Article 2] of the 「Guarantee of Workers' Retirement Benefits Act」).
- 'severance pay system' is that makes it possible to pay a retiring workers a prorated amount equivalent to average wages earned for 30 days or more for each year of his/her continuous service (Article 8.(1) of the 「Guarantee of Workers' Retirement Benefits Act」).
Significance of retirement pension scheme
Significance of retirement pension scheme
- "Retirement pension plan" is that makes it possible to pay workers who have saved money for retirement pension at a financial institution during a work period. When the workers retire, he/she receives an annuity or lump-sum.
The retirement pension scheme is classified into a defined benefit retirement pension plan, defined contribution retirement pension plan, and individual retirement pension plan.
- The “defined benefit retirement pension plan” refers to a retirement pension plan in which the amount of benefits receivable by a worker is predetermined (Subparagraph 8, Article 2 of the 「Guarantee of Workers' Retirement Benefits Act」).
- The “defined contribution retirement pension plan” refers to a retirement pension plan in which the amount of an employer’s contributions to pay benefits is predetermined (Subparagraph 9, Article 2 of the 「Guarantee of Workers' Retirement Benefits Act」).
- The “individual retirement pension plan” refers to a retirement pension plan set up to deposit and manage lump-sum payments made by subscribers at their option or contributions paid by employers or subscribers. Under the plan, the amount of benefits or contributions is not finalized. (Subparagraph 10, Article 2 of the 「Guarantee of Workers' Retirement Benefits Act」).
Scope of application of retirement benefit scheme
This act shall apply to all businesses or workplaces employing workers, provided that this shall not apply to businesses employing only relatives living together, nor to employment activities in a household (Article 3 of the 「Guarantee of Workers' Retirement Benefits Act」).
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