Employees' Pension Insurance Act

The amount of contributions paid by an implementing organization pursuant to the provisions of paragraph (1) of the preceding Article is the amount calculated when the amount constituting the part of basic pension contributions that represents insurance premiums that the implementing organization pays is deducted from the sum total of the amounts arrived at when the amount used to calculate contributions for the relevant fiscal year is multiplied by each of the rates set forth in the following items:

standardized remuneration allocation rate;

reserves allocation rate.

The amount used to calculate contributions referred to in the preceding paragraph is the amount calculated when the total amount constituting the part of basic pension contributions that represents insurance premiums borne or paid by the government and the implementing organizations in the relevant fiscal year is added to the total amount of expenses for EPI benefits and their equivalent in the relevant fiscal year.

The standardized remuneration allocation rate referred to in paragraph (1), item (i) is the rate arrived at when the rate set forth in item (i) is multiplied by the rate set forth in item (ii).

the rate calculated for each implementing organization as prescribed by Order of the Ministry of Health, Labour and Welfare based on the rate arrived at when the amount calculated as specified by Cabinet Order as the total amount of standardized remuneration of insureds who are members of the relevant implementing organization or of insureds who are members of the relevant mutual aid system for private school personnel (in the case of Federation of National Public Service Personnel Mutual Aid Associations and Pension Fund Association for Local Government Officials, a member of a mutual aid association organizing the relevant federation) in the relevant fiscal year (referred to in Article 84-8, paragraph (1) as "total amount of standardized remuneration at the implementing organization") is divided by the amount calculated as specified by Cabinet Order as the total amount of standardized remuneration of insureds covered by employees' pension insurance in the relevant fiscal year;

the rate calculated as specified by Order of the Ministry of Health, Labour and Welfare as the average of the percentages, in each fiscal year during the period subject to budget balancing in the most recent current budget status and projections report before the relevant fiscal year, that the estimated sum totals of insurance premiums, monies to be collected provided for in this Act, and other amounts specified by Cabinet Order account for of the estimated amounts used to calculate contributions (referred to in item (ii) of the following paragraph as the "percent of revenue from insurance premiums").

The reserves allocation rate referred to in paragraph (1), item (ii) is the rate arrived at when the rate set forth in item (i) is multiplied by the rate set forth in item (ii).

the rate calculated for each implementing organization as prescribed by Order of the Ministry of Health, Labour and Welfare based on the rate arrived at when the sum total of the amount of implementing organization reserves in the fiscal year preceding the relevant fiscal year and the amount of the things specified by Cabinet Order as equivalent to this (hereinafter referred to in this item as the "amount of implementing organization reserves") is divided by the sum total calculated when the total of the amount of reserve funds in the employees' pension section of the pension special account and the amount of the things specified by Cabinet Order as equivalent to this (hereinafter referred as the "amount of employees' pension account reserves") and the amount of implementing organization reserves are added together.

the rate arrived at when the percent of revenue from insurance premiums is deducted from the number 1.

Before establishing the Order of the Ministry of Health, Labour and Welfare prescribed in the item of paragraph (3) and item (i) of the preceding paragraph, the Minister of Health, Labour and Welfare must consult with the minister with administrative jurisdiction over the implementing organization.

Pursuant to Cabinet Order, every fiscal year, a mutual aid association of local government officials bears the part of the amount of the contributions to be paid by the Pension Fund Association for Local Government Officials that constitutes the amount calculated as specified by Cabinet Order as equivalent to the amount calculated pursuant to the provisions of the preceding Article.

The Minister of Health, Labour and Welfare may request, through the minister with administrative jurisdiction over an implementing organization, that the implementing organization report the total amount of standardized remuneration at the implementing organization and other particulars specified by Order of the Ministry of Health, Labour and Welfare.

An implementing organization, as specified by Order of the Ministry of Health, Labour and Welfare, is to report as referred to in the preceding paragraph through the minister with administrative jurisdiction over that implementing organization.

As prescribed by Order of the Ministry of Health, Labour and Welfare, an implementing organization is to report to the Minister of Health, Labour and Welfare through the minister with administrative jurisdiction over that implementing organization with regard to the particulars that Order of the Ministry of Health, Labour and Welfare prescribes as being necessary for the purpose of calculation of the estimated amount set forth in Article 84-5, paragraph (3).

The Minister of Health, Labour and Welfare, as prescribed by Order of the Ministry of Health, Labour and Welfare, is to report to the minister with administrative jurisdiction over the implementing organization with regard to the estimated amount set forth in Article 84-5, paragraph (3) and the particulars prescribed by Order of the Ministry of Health, Labour and Welfare in relation to this.

The Minister of Health, Labour and Welfare, when establishing the Order set forth in each of the preceding paragraphs, must consult with the minister with administrative jurisdiction over the implementing organization.

The Minister of Health, Labour and Welfare, on finding it to be necessary to do so with regard to the application of the provisions of Article 84-3 through the preceding Article, may request that the minister with administrative jurisdiction over an implementing organization issue the necessary supervisory orders in connection with the reports referred to in paragraph (1) of that Article for that implementing organization, or have the relevant official audit the business status of the relevant implementing organization.

Beyond as provided in Article 84-3 through the preceding Article, Cabinet Order provides for the necessary particulars in connection with the delivery of subsidies and the payment of contributions.

In the cases set forth in the following items, insurance premiums may be collected even before the payment due date:

if the person obligated to pay insurance premiums falls under one of the following:

if the person is subject to measures to collect arrears because of arrears in national taxes, local taxes or other public charges;

if the person is subject to a compulsory execution;

if the person has become subject to an order commencing bankruptcy proceedings;

if procedures have begun to enforce a security interest in an enterprise; or

if procedures have begun to enforce a security interest in enterprise value;

if a compulsory auction has commenced.

if the corporation that is obligated to pay the insurance premiums is dissolved;

if the place of business at which the insured is employed is closed;

if the owner of the ship by which the insured is employed changes, or if the ship is destroyed, sinks, or has become unseaworthy.

If a person has failed to pay insurance premiums or other monies to be collected under the provisions of this Act, the Minister of Health, Labour and Welfare must designate a due date and demand that those monies be paid; provided, however, that this does not apply if insurance premiums are collected pursuant to the provisions of the preceding Article.

When seeking to issue a demand pursuant to the provisions of the preceding paragraph, the Minister of Health, Labour and Welfare issues a written demand to the person obligated to pay.

If the person obligated to pay is a person being issued a demand pursuant to the provisions of Article 180 of the Health Insurance Act, the written demand under the provisions of the preceding paragraph may be issued by inclusion in a written demand under the provisions of that Article of that Act.

The due date designated in a written demand as referred to in paragraph (2) must be a day that falls at least 10 days after the date of issuance of the written demand; provided, however, that this does not apply in a case that falls under one of the items of the preceding Article.

If a person obligated to pay falls under one of the following items, the Minister of Health, Labour and Welfare may dispose of this as per the rules on measures to collect national tax arrears, or may request that the municipality (including a special ward, and in the case of a designated city under Article 252-19 paragraph (1) of the Local Autonomy Act (Act No. 67 of 1947), the ward or administratively consolidated ward; the same applies hereinafter) in which the place of residence or the assets of the person obligated to pay are located, so dispose:

if a person who has been issued a demand for payment under the provisions of paragraph (2) fails to pay the insurance premiums or other monies to be collected pursuant to the provisions of this Act by the designated due date;

if a person who has been issued a payment notice for insurance premiums with a due date for payment that has been moved forward due to the person's falling under one of the items of the preceding Article fails to pay the insurance premiums by the designated due date.

If a municipality has been requested to carry out a disposition under the provisions of the preceding paragraph, the municipality may dispose of this as per the rules on municipal taxes. In such a case, the Minister of Health, Labour and Welfare must deliver an amount equal to 4 percent of the monies collected to the municipality in question.

Having issued a demand for payment pursuant to the provisions of paragraph (2) of the preceding Article, the Minister of Health, Labour and Welfare collects delinquency charges calculated by multiplying the amount of insurance premiums by an interest rate of 14.6% per annum (or 7.3% per annum for the period from the day after the due date until the last day in the three-month period thereafter), depending on the number of days in the period from the day after the due date until the day before insurance premiums are paid in full or the day before assets are seized; provided, however, that this does not apply in a case as referred to in one of the following items or if there are acknowledged to be compelling grounds for the arrears:

if the amount of insurance premiums is less than 1,000 yen;

if insurance premiums are being collected in advance of the payment date; or

if the demand for payment is made through service by publication because the domicile or residence of the person obligated to pay is not in Japan or because both the domicile and residence thereof are unknown.

In a case as referred to in the preceding paragraph, if a part of the amount of insurance premiums has been paid, the amount of insurance premiums that forms the basis for calculating delinquency charges for the period on and after the day of the partial payment is the original amount of the insurance premiums minus the amount thus paid.

In calculating delinquency charges, the amount of insurance premiums are rounded down to the nearest thousand yen.

If insurance premiums are paid in full by the due date designated in the demand letter, or if the amount calculated pursuant to the provisions of the preceding three paragraphs is less than 100 yen, delinquency charges are not collected.

Delinquency charges are rounded down to the nearest hundred yen.

The monies to be collected under the provisions of Article 40-2 are deemed to be insurance premiums for the purpose of the application of the provisions of the preceding paragraphs. This being the case, the phrase "14.6% per annum (or 7.3% per annum for the period from the day after the due date until the last day in the three-month period thereafter)" in paragraph (1) is deemed to be replaced with "14.6% per annum".

Notwithstanding the provisions of the preceding three Articles, advance collection of insurance premiums, demands for insurance premiums or other monies to be collected pursuant to the provisions of this Act, measures to collect arrears, and collection of delinquency charges from a category II EPI insured, category III EPI insured, or category IV EPI insured are governed by the Acts on mutual aid.

The ordinal position among statutory liens of insurance premiums and other monies to be collected under the provisions of this Act is following national taxes and local taxes.

Unless otherwise provided for in this Act, insurance premiums and other monies to be collected under the provisions of this Act are collected as per the rules for the collection of national taxes.

The provisions of the preceding two Articles do not apply to the insurance premiums and other monies to be collected under the provisions of this Act for a category II EPI insured, category III EPI insured, or category IV EPI insured.