Reduction standard for in-service old-age pension Proposal for raising income to 510,000 yen Generally, November 13, 18:20

About the "employed old age pension" system that reduces the pension of elderly people who work and have a certain income, the Ministry of Health, Labor and Welfare proposes a plan to raise the standard amount of income that the pension will be reduced from the current 470,000 yen to 510,000 yen In general, it was approved.

The “employed old-age pension” system is a mechanism to reduce the pension of working elderly people. For those over 65 years old, if the combined salary and pension exceeds 470,000 yen per month, it will be reduced.

However, because it has been pointed out that the elderly are motivated to work, the Ministry of Health, Labor and Welfare is considering a review, and the standard amount that the pension is reduced to the subcommittee of the Social Security Council on the 13th will be 510,000 yen I showed a plan to raise.

Last month, the Ministry of Health, Labor and Welfare showed two proposals: a plan to raise the standard amount to 620,000 yen and a plan to abolish the system itself. On the other hand, the level of supply for future generations has been reduced, "and the amount of increase was reduced.

If 510,000 yen is set, the number of people whose pension will be reduced will be approximately 90,000 less than it is now, and the total amount of pension will be increased by about 70 billion yen per year. "Rate" is only below 0.1 points, and the impact on future generations is limited.

In response to this proposal, the committee members agreed in favor, such as “It encourages the elderly to work” and was generally approved.

The Ministry of Health, Labor and Welfare will compile concrete measures by the end of the year and submit related bills to the ordinary Diet next year.

Proposal for reviewing the “Aged Pension”

In the “In-service old age pension” system, when the total amount of monthly salary and pension exceeds 280,000 yen from the age of 60 to 64, when the total amount exceeds 470,000 yen for the age of 65 and over, The pension is reduced.

Of these, the revision plan for those over 65 years old raises the standard amount of pension reduction from 470,000 yen to 510,000 yen.
This will reduce the pension from about 410,000 to 320,000 people, about 90,000 less than now.
This 90,000 people will be paid a new pension for the reduced amount, and it is estimated that the annual payment will increase by about 70 billion yen.
However, the “income replacement rate”, which indicates the level of public pension benefits after about 30 years, is limited to less than 0.1 points, and the impact on future generations is limited.

On the other hand, for those aged 60 to 64, the pension will be reduced from 280,000 yen to 510,000 yen, just like those 65 and over.
This will reduce the pension from approximately 670,000 to 170,000 and approximately 500,000. As a result, the annual payment will increase by approximately 330 billion yen.
However, since the start of welfare annuity payments will be raised to 65 years or older by the year 2029, the review from 60 to 64 will be a transitional measure and there will be little impact on long-term finances.

Consider expanding application of employee pension to short-time workers such as part-time workers

On the other hand, in this reform of the pension system, one of the pillars is the expansion of the application of the welfare pension to the short-time workers working in the part-time.

The Ministry of Health, Labor and Welfare is proceeding with examinations to ease the requirements of the company scale, which has more than 501 employees, among the conditions for joining the Employees' Pension.

According to calculations by the Ministry of Health, Labor and Welfare, if the company size requirement is reduced to `` 51 or more employees '', 650,000 people
▽ If “21 people or more” is selected, 850,000 people
▽ If the requirement itself is abolished, 1.25 million people
Each will join the target.

The “income replacement rate”, which shows the level of public pension benefits after about 30 years, is approximately 0.3% when reduced to “51 or more”,
▽ In the case of "21 or more", about 0.4%,
▽ In the case of abolition, it will improve by about 0.5%.

The Ministry of Health, Labor and Welfare has decided to proceed with coordination with the ruling party and industry organizations based on a plan to reduce the number of employees to 51 or more.

However, since there is a rebound from SMEs that bear half of the insurance premium, it is expected that the requirements will be gradually eased over several years and measures to support SMEs will be considered together .