Nippon Life Insurance Co., Ltd., the largest life insurance company, will reduce the investment interest rate of pension funds entrusted to it by companies in April next year.
This is the first reduction in 21 years, and some companies may need to take measures to reduce the amount of employee pensions received.
Nippon Life will reduce the promised investment interest rate = "planned interest rate" from the current 1.25% to 0.5% in April next year for corporate pensions managed by entrusting funds from companies.
Apart from the public national pension and welfare pension, the target is a "defined benefit type" pension that guarantees future benefits among the pensions privately managed by the company, and the expected interest rate will be reduced in 2002. It's been 21 years since then.
There are about 5,200 companies that have contracts with Nippon Life, and the investment amount is 5.6 trillion yen, so some companies will increase the premiums and reduce the amount of employees' pensions in the future. You may be forced to take action.
The company explains that the reason for the reduction is that the BOJ's large-scale monetary easing has caused the effects of ultra-low interest rates to prolong the low yields on government bonds, making it difficult to manage.
Regarding the expected interest rate of corporate pensions, Dai-ichi Life has already decided to reduce it in October last year, and it is possible that similar movements will spread to other major companies in the future.