Fund-type corporate pension trust
Within defined benefits type corporate pensions, with the agreement of employees, corporate pension funds are established as separate corporate entities by business owners in accordance with the pension rules that define the system, with the management and administration of such pension assets called funded corporate pensions. The portion of the funds entrusted with, and managed by trust banks is called fund-type corporate pension trust.
Trust banks manage and administer the pension assets in accordance with the fund-type corporate pension trust and undertake operations such as actuarial accounting, payments of pensions, and lump sum payments to retirees.
Fund-type corporate pension trust
- With the agreement of employees, business owners establish the rules of the pension fund that define matters such as qualifications to receive benefits, benefit details and methods, and premium payments.
- Business owners establish pension rules mentioned in item 1 with the approval of the Minister of Health, Labour and Welfare.
- Trust banks enter into a funded corporate pension plan trust contract with business owners concerning matters such as premium payments and the management of reserves.
- Trust banks manage and administer the pension assets in accordance with the contract mentioned in item 3 and conduct operations such as actuarial accounting and payment of pensions and lump sums.
Contract-type corporate pension trusts | Funded corporate pension plan trust
Employees' pension fund trust | Defined benefits corporate pensions trusts | Defined contribution persion | Employee retirement benefit trust
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