Seniors lose bit of pension for insurance

Compiled from Kyodo, staff reports

http://search.japantimes.co.jp/cgi-bin/nn20080416a1.html

Pension benefit deductions began Tuesday in line with a new health insurance system inaugurated April 1 to cover people aged 75 and older.

Of the 13 million people the new insurance system covers, some 8.32 million who had been covered by national health insurance are subject to the pension deductions.

However, 31 cities, including Yokohama and Saitama, will postpone the deduction from pension benefits until October because their administrative processes have been delayed.

Once their residents begin paying the deductions, about 80 percent of the 13 million retirees will be covered by the new system.

The government argues that the deductions will better reflect the insurance cost burden based on income levels and reduce the cost young people have to pay to cover medical care for the elderly.

The system is also aimed at boosting collection of insurance payments from the elderly and reducing administrative costs, it said.

"It is a sustainable system," Prime Minister Yasuo Fukuda said. "Although it may take some time for people to get used to the new system, I hope people will fully utilize it. At the same time, the government must make efforts to explain the positive aspects of the new system to the people."

Under the new system, which covers people receiving at least ¥180,000 in annual pension benefits, health insurance fees will vary by income and the prefectures they reside in, with a slight increase for some compared with the fees for national health insurance.

The Japan Times: Wednesday, April 16, 2008

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