June 19, 2019

Japanese Communist Party Secretariat Head Koike Akira on June 18 at a House of Councilors committee meeting demanded that the government abolish the “macroeconomic slide” mechanism for slashing basic pension benefits and instead improve the level of pension benefits.

At the Upper House Financial Affairs Committee meeting, Koike brought up the issue of the Financial Service Agency’s report showing that elderly people relying only on public pension benefits will face an income shortfall of 55,000 yen every month.

Koike pointed out that under the “macroeconomic slide” mechanism, the monthly basic pension will decrease from the current 65,000 yen to a 40,000-yen level in 2043. “Consequently, more and more elderly people will fall into poverty,” Koike added.

Koike also noted that even the FSA council’s working group, which compiled the controversial report, indicated the possibility that people who are now under 50 years of age will suffer from a monthly deficit of 100,000 yen due to the “macroeconomic slide” scheme.

Koike said that the government should revise the national pension program so that everyone can receive an adequate level of pension benefits.

Furthermore, Koike admonished the government in regard to delays in the release of the report on financial projections of the national pension, called “actual valuations”. The last report on quinquennial valuations was published on June 3, 2014.

In response to the explanation from the Welfare Ministry that to perform the necessary calculations takes time, Koike pointed out that calculation methods should be the same as the previous valuations, and said that it appears that the ministry intends to wait until after the July Upper House election to release the report. He went on to say that in response to growing public concern about the universal basic pension program, the government should publish the valuation report without further delay.

Past related articles:
> 74% in opinion poll concerned about adequate money to live on in old age [June 18, 2019]
> Koike grills PM Abe about gov’t report admitting to insufficient pension benefits [ June 11, 2019]