Employees' pension fund trust

Within corporate pension trusts, employees' pension funds established in accordance with the Employees' Pension Insurance Act that can pay part of the old-aged pension instead of the government, while simultaneously paying benefits from the participation in a company's own pension, are called employees' pension fund trusts.
Such trusts pay a pension for a person's entire life. Premium payments by the business owner can be treated as a loss, and payments by employees can be deducted from their taxable income.
Furthermore, the enactment of the Defined Benefits Type Corporate Pensions Act authorizes the transfer of employees' pension funds to other corporate pension systems that do not pay part of the pension fund instead of the government.

Employees' pension fund trust

Employees’ pension fund trust

  1. With the employees' agreement, business owners establish the rules of the employees' pension fund that define matters such as pension benefits.
  2. Business owners establish employees' pension funds with the approval of the Minister of Health, Labour and Welfare.
    Various conditions must be met, such as a minimum number of members to establish an employees' pension fund.
    The fund is managed and administered in accordance with the rules mentioned in item 1
  3. The trust banks enter into the pension trust contract with the employees' pension funds.
  4. Trust banks manage and administer the pension assets in accordance with the agreement mentioned in item 3 and conduct operations such as actuarial accounting and payment of benefits.

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