On the basis of an investigation by a panel of the internal affairs ministry, the Social Insurance Agency has admitted that a staff worker in 1995 instructed a Tokyo company president to lower the figures of the employees' monthly incomes in pension records so that the company could pay lower pension premiums.

The case is likely the tip of the iceberg since falsification of pension records at the instruction of SIA workers have been alleged for some time. In addition, there are cases in which shortening of the period for premium payments through falsification is suspected.

The panel investigated 17 cases and confirmed that the SIA worker issued instructions to the Tokyo company when the worker's handwriting was found on a document kept by the company president. In the remaining 16 cases, no solid evidence was found.

Amounts corresponding to about 15 percent of company employees' monthly incomes are paid as premiums for the kosei nenkin pension system for such workers. Companies shoulder half the premiums. If companies fall behind in premium payments, falsely lowering figures for employees' monthly incomes would benefit the companies as it would lower premium payments and help the companies' cash flow. Also, the amount of premium payments in arrears would appear to fall and the SIA offices' premiums collection rate would improve, thus benefiting the SIA offices. The sole victims of this falsification are the affected employees whose pension benefits are reduced.

The SIA will investigate some 200 suspected cases of falsification. But according to one estimate such cases could number in the hundreds of thousands. The SIA will notify people when it goes through its some 150 million kosei nenkin-related records and finds sudden changes in the figures of their monthly incomes. Next year, it will also send records of monthly incomes to the kosei nenkin pensioners, who number about 20 million. The Democratic Party of Japan had demanded that the SIA include the figures of monthly incomes in "special pension letters" that it is sending to people.

The SIA has not only cheated pensioners, it has also wasted time and money by not accepting the DPJ's recommendations. People are advised to carefully read documents sent to them by the SIA.