Government lies exposed about 'reliable' pension program

Japanese Communist Party House of Councilors member Koike Akira revealed that the government lied about its pension "reform" plan by implying that it would limit future increases in the pension premiums and maintain the amount of benefits at 50 percent of the average amount of wages.

Koike made this revelation in the Upper House plenary session on May 12.

The amount of the National Pension monthly premiums is currently fixed at 13,300 yen. The government explains that it will be on a sliding scale and can increase until it is fixed at 16,900 yen in 2017. But Koike pointed out that the amount cannot be capped because it will be increased in conjunction with the nominal wage increase rate.

On the benefit side, the government says that the amount will be reduced from 59 percent but not under 50 percent of the average take-home pay for the current worker. But Koike pointed out that the 50 percent will be guaranteed only for the starting year at 65-year-old in a limited number of "model" households of single income. After that, benefits will be reduced to a 40 percent level.

Both Prime Minister Koizumi Jun'ichiro and Health, Labor and Welfare Minister Sakaguchi Chikara conceded that this is true.

Koike demanded that the pension bill be withdrawn because the two government arguments used to sell the "reliability" of the pension reform are false.

The pension "reform" bill which the ruling parties rammed through the House of Representatives on May 11 is now being discussed in the House of Councilors. (end)