Nomura Securities Co. will withdraw from the securities industry’s employee pension fund and use the money it saves to set up a 401(k)-style pension plan, company officials said Thursday.
At the end of this month, Nomura will apply to the fund to withdraw and then seek approval from the Health, Labor and Welfare Ministry, the officials said.
Nomura is the first major brokerage to make the decision; Nikko Securities Co. is expected to follow its example.
The securities industry’s employee pension fund was established in 1971.
It manages 600 billion yen for some 100,000 members, including around 13,000 Nomura employees.
As Nomura’s withdrawal will seriously affect the fund, which is already saddled with reserve shortages due to poor investment performance, the fund plans to work out rules to collect payments from member companies when they secede.
Nomura, the nation’s largest brokerage house, wants to save contributions managed by the fund for pension payments added to basic benefits, according to the officials. Beginning April 1, the government will allow pension plans based on 401(k) schemes.
These are defined-contribution plans used in the U.S., the benefits of which hinge on investment performance.
Nomura hopes to establish a leading position in the market with its plan.
In a time of both misinformation and too much information, quality journalism is more crucial than ever.
By subscribing, you can help us get the story right.