By Keiichi Inai

On June 5, the Diet enacted a new pension law focusing on retirement insurance increases and payment decreases. Japanese people paid notice to the pension problem more than ever before in the revelation of nonpayment by members of the Diet. The law was readily enacted after the government party railroaded it and the opposition party employed delaying tactics. However, the new pension system has not been reformed and is far from a system we can put our trust in.

The pension system has two basic problems. One is the increase in insurance costs and the decrease in benefits to the pensioners. The national pension premiums will increase every year; the annual payments will go up from the present ￥159,600 to ￥193,200 during the next 10 years. In addition, employee pension preniums will change. In cases of families with a monthly income of ￥300,000, payments will go up from ￥244,400 to ￥329,400 during the next decade. On the other hand, in cases where families with a monthly income of ￥400,000, benefits will be reduced from ￥233,300 to ￥198,050 during the next 20 years.

The other problem is the hollowing out of the pension system. At present, though about 22 million people use the national pension system, 9 million people don't pay into it, so the system can't function well due to the nonpayments. The new law is based on the assunption that all Japanese nationals take out some sort of pension and pay the premium. It's apparent that people in arrears will increase and the system will fall into bankruptcy unless the system changes.

It is necessary for us to put a break on the pension system's growing costs, decrease payments and increase the number of citizens who have signed up but are delinquent in their payments. How many people really understand the new pension system without any satisfying explanation? Japanese citizens are becoming increasingly angry about the dilapidated pension system. Everyone is hoping for a new pension system of relief and belief.

The people's opinions about the pension will become clear in the House of Councilors election in July. Citizens are angry at the government for concluding the new law without explaining it well. We should elect parties and members who will bring in new ideas and help assure life after retirement. The next election should be a referendum on pension reform.