The government announced a plan Friday to equalize the pension schemes for company employees and civil servants that will include a 10 percent cut in the pensions of some government employees.
The pension cuts and other points of the pension program were adopted by the Cabinet. Bills to introduce the plan will be submitted to the next regular Diet session in early 2007.
The measures also include a gradual increase in premiums for mutual aid pension programs for civil servants to 18.3 percent of monthly pay by 2018, the same rate as planned for employees of private companies.
Private-school employees will also be required to pay the 18.3 percent rate in premiums for their pension programs, starting in 2027.
The cuts are aimed at reducing the cost of financing pension payments to people who became civil servants before the changes take effect in the pension system for government employees, according to the government.
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