There is widespread concern among Japanese that the nation's pension system is in disarray. The biggest issue is the decline in the rate of premium payers. In fiscal 2003, as many as 36.6 percent of the people registered in the kokumin nenkin (people's pension) system, a plan intended mainly for self-employed people but that also serves as the funding base for all types of pensions, were not paying their monthly dues.
Another issue is declining public trust in the system as a result of the Social Insurance Agency's questionable appropriation of premiums paid in. A portion of such money has found its way into the construction of unnecessary, large-scale health and leisure facilities in various parts of the country, housing repairs for agency officials, compensation of officials' health-check costs, and even the purchase of official-use cars and golf balls for higher-ranking officials of the agency.
An advisory committee to the chief Cabinet secretary recently proposed revamping the Social Insurance Agency, which has been the target of criticism for its misconduct. The proposal may be one step forward, but it does not necessarily get to the crux of the matter.