The Finance Ministry's top bureaucrat formally resigned on Tuesday over sexual harassment allegations, with his retirement benefits — estimated to total around ¥53 million ($487,000) — suspended until the ministry decides whether to take disciplinary action.

Administrative Vice Minister Junichi Fukuda has denied the allegations — which were levied by female reporters — but offered to give up his post last week, saying it had become difficult to perform his duties at a time when the ministry has been mired in a separate scandal.

Opposition parties took issue with the government's decision to accept Fukuda's resignation without reprimanding him. But Finance Minister Taro Aso said the ministry needs to gather facts to determine the accuracy of the sexual harassment claims, first reported in the Shukan Shincho weekly magazine. If punishment is deemed to be appropriate, the amount of retirement pay will be cut accordingly, Aso said.