Supplementary Provisions, Article 36Delivery of Residual Assets of a Dissolved Surviving Employees' Pension Fund to the Organization for Workers' Retirement Allowance Mutual Aid

①A surviving employees' pension Fund that is dissolved on or after the Effective Date (excluding one for which the amount of the reserves for pension benefits, etc. on the day of dissolution is less than the liability reserve equivalent) may, as provided by its articles of Association, where the employer of its establishing place of business (limited to the case where that employer is a small or medium-sized enterprise prescribed in Article 2, paragraph (1) of the Small and Medium Sized Enterprise Retirement Allowance Cooperative Act (Act No. 160 of 1959); the same applies hereinafter in this Article) has concluded a retirement allowance mutual aid contract prescribed in Article 2, paragraph (3) of that Act (hereinafter referred to in this Article simply as a "retirement allowance mutual aid contract") with a member of a dissolved Fund it employs (meaning a person to whom the dissolved employees' pension Fund owed obligations concerning the payment of old-age pension benefits on the day of its dissolution; the same applies hereinafter), making that member a covered employee prescribed in Article 2, paragraph (7) of that Act, apply to the Organization for Workers' Retirement Allowance Mutual Aid (hereinafter referred to in this Article as the "Organization") for the delivery of an amount within the range of the covered employee's share amount (meaning the amount calculated by the method specified by Order of the Ministry of Health, Labour and Welfare as the share of the member of a dissolved Fund who became that covered employee, out of those residual assets) out of the residual assets (hereinafter referred to in this Article as "residual assets") to be distributed pursuant to the provisions of Article 34, paragraph (4) of the Supplementary Provisions to the member of a dissolved Fund who became a covered employee under that retirement allowance mutual aid contract. In this case, the phrase "residual assets" in Article 34, paragraph (4) of the Supplementary Provisions is deemed to be replaced with "residual assets (excluding those delivered in accordance with an application under Article 36, paragraph (1) of the Supplementary Provisions)".

③Notwithstanding the provisions of Article 10, paragraph (1), proviso and paragraph (2) of the Small and Medium Sized Enterprise Retirement Allowance Cooperative Act, the amount of the retirement allowance when a covered employee under that retirement allowance mutual aid contract who has the remaining amount obtained by deducting the amount specified by Cabinet Order referred to in the preceding paragraph from the amount delivered retires is, according to the category of the number of months of paid contributions after the aggregation under the preceding paragraph set forth in the following items, the amount specified in the respective items:

④The amount of the cancellation allowance payable when the retirement allowance mutual aid contract pertaining to a covered employee under that retirement allowance mutual aid contract who has the remaining amount referred to in the preceding paragraph is cancelled is, notwithstanding the provisions of Article 16, paragraph (3) of the Small and Medium Sized Enterprise Retirement Allowance Cooperative Act, the amount calculated in accordance with the provisions of the preceding paragraph.

⑤With regard to a covered employee under a retirement allowance mutual aid contract for which the amount delivered has been delivered to the Organization in accordance with the application under paragraph (1), that employer may not make the application referred to in Article 27, paragraph (1) of the Small and Medium Sized Enterprise Retirement Allowance Cooperative Act, notwithstanding the provisions of that paragraph.

⑥When the amount delivered has been delivered to the Organization in accordance with the application under paragraph (1), that employer must notify the member of a dissolved Fund who became the covered employee to whom the amount delivered pertains to that effect.

⑦The provisions of paragraph (1) apply mutatis mutandis to the case where the employer of the establishing place of business of a surviving employees' pension Fund dissolved on or after the Effective Date has continued, since before that dissolution, to hold a retirement allowance mutual aid contract under which a member of a dissolved Fund it employs is the covered employee. In this case, the phrase "became a covered employee" in paragraph (1) is deemed to be replaced with "is a covered employee"; in addition, Cabinet Order provides for the necessary technical replacement of terms.

⑧Notwithstanding the provisions of the Small and Medium Sized Enterprise Retirement Allowance Cooperative Act, the amount of the retirement allowance when a covered employee under a retirement allowance mutual aid contract for which the amount delivered has been delivered to the Organization in accordance with the application under the provisions of paragraph (1) as applied mutatis mutandis pursuant to the preceding paragraph retires is the amount obtained by adding, to the amount of retirement allowance calculated pursuant to the provisions of that Act on the assumption that there had been no delivery of the amount delivered under the provisions of paragraph (1), the total of principal and interest obtained by calculating compound interest on the amount delivered, for the period from the month following the month that includes the day of the delivery to the month that includes the day on which the covered employee retired, at the rate obtained by adding the rate determined by the Minister of Health, Labour and Welfare to the rate specified by Cabinet Order (or, where the covered employee retired in the month that includes the day of the delivery, that amount delivered).

⑨The amount of the cancellation allowance when a retirement allowance mutual aid contract for which the amount delivered has been delivered to the Organization in accordance with the application under the provisions of paragraph (1) as applied mutatis mutandis pursuant to paragraph (7) is cancelled is, notwithstanding the provisions of the Small and Medium Sized Enterprise Retirement Allowance Cooperative Act, the amount calculated following the example of the provisions of the preceding paragraph.

⑩The provisions of paragraph (6) apply mutatis mutandis to the case referred to in paragraph (7). In this case, the phrase "became the covered employee" in paragraph (6) is deemed to be replaced with "is the covered employee"; in addition, Cabinet Order provides for the necessary technical replacement of terms.