Defined benefits type corporate pensions trusts
The Defined Benefits Type Corporate Pension Act was enacted on April 1, 2002, and it defined matters such as the vested rights in pensions agreed to between business owners and employees concerning the benefits, which take into account the changing socio-economic situation of the low-birth rate and aging society and changes in the industrial structure. In defined benefits type corporate pensions, with the agreement of employees, business owners make external contributions in accordance with the pension rules that define the system as prescribed by the regulatory legislation, with the management and administration of such pension assets and payment of pensions called corporate pensions operated by multiple employers. A corporate pension fund established by a business owner as a separate corporate entity to manage and administer the pension assets based on the pension contract that defines the system agreed to with employees is called a funded corporate pension. The management and administration of such pension assets entrusted to trusts banks are called contract-type corporate pension trusts and fund-type corporate pension trust, respectively.
The use of such trusts enables business owners to record the amount contributed as a loss, and employees can deduct payments from their taxable income.
Employees' pension fund trust | Defined benefits type corporate pensions trusts | Defined contribution persion | Employee retirement benefit trust
Types of trusts | Money trusts & Loan trusts | Investment trusts | Family trusts·Inheritance - related operations | Real estate trusts·Real estate business | Pension trusts | Asset formation trusts | Asset securitization type trust(monetary claims trusts, real estate trusts) | Securities trusts | Securities trusts (specified money trusts, fund trusts) | Stock Transfer Agencies | Charitable trusts | Specified donor trusts | Product expectations